General American Investors Co. Inc. Buys New Position in ServiceNow, Inc. $NOW

Key Points

• General American Investors opened a new position in ServiceNow during the first quarter, buying 60,000 shares worth about $6.27 million.
• Other institutional investors also increased their stakes, and hedge funds and institutions now own 87.18% of ServiceNow’s stock, showing continued heavy institutional interest.
• ServiceNow’s latest quarter met Wall Street expectations with $0.97 EPS and $3.77 billion in revenue, while analysts remain broadly positive with a Moderate Buy rating and a consensus price target of $141.47.

General American Investors Co. Inc. purchased a new stake in ServiceNow, Inc. (NYSE:NOW - Free Report) in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm purchased 60,000 shares of the information technology services provider's stock, valued at approximately $6,273,000.

Several other institutional investors have also added to or reduced their stakes in NOW. Citizens Financial Group Inc. RI grew its stake in shares of ServiceNow by 25.8% during the first quarter. Citizens Financial Group Inc. RI now owns 91,810 shares of the information technology services provider's stock worth $9,599,000 after acquiring an additional 18,838 shares during the last quarter. Fifth Third Bancorp raised its position in shares of ServiceNow by 49.0% in the 1st quarter. Fifth Third Bancorp now owns 705,345 shares of the information technology services provider's stock valued at $73,744,000 after purchasing an additional 231,933 shares during the last quarter. Sovran Advisors LLC boosted its stake in ServiceNow by 19.9% in the 1st quarter. Sovran Advisors LLC now owns 10,923 shares of the information technology services provider's stock worth $1,142,000 after purchasing an additional 1,811 shares in the last quarter. Darwin Wealth Management LLC boosted its stake in ServiceNow by 86.9% in the 1st quarter. Darwin Wealth Management LLC now owns 2,345 shares of the information technology services provider's stock worth $245,000 after purchasing an additional 1,090 shares in the last quarter. Finally, Torray Investment Partners LLC grew its position in ServiceNow by 35.0% during the 1st quarter. Torray Investment Partners LLC now owns 54,854 shares of the information technology services provider's stock worth $5,735,000 after purchasing an additional 14,225 shares during the last quarter. Institutional investors and hedge funds own 87.18% of the company's stock.

ServiceNow Stock Performance

NYSE:NOW traded down $1.03 during trading hours on Friday, reaching $107.81. The company had a trading volume of 11,058,890 shares, compared to its average volume of 20,996,616. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $210.20. The business's 50 day moving average price is $102.49 and its 200-day moving average price is $111.27. The firm has a market cap of $111.16 billion, a PE ratio of 64.25, a price-to-earnings-growth ratio of 1.79 and a beta of 0.96.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting analysts' consensus estimates of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business had revenue of $3.77 billion for the quarter, compared to analysts' expectations of $3.75 billion. During the same quarter last year, the company earned $0.81 EPS. The business's revenue was up 22.1% on a year-over-year basis. Research analysts forecast that ServiceNow, Inc. will post 2.34 EPS for the current year.

Wall Street Analysts Forecast Growth

NOW has been the topic of a number of recent analyst reports. FBN Securities cut their price target on shares of ServiceNow from $160.00 to $120.00 in a research note on Thursday, April 23rd. HSBC dropped their price objective on shares of ServiceNow from $226.00 to $171.00 and set a "buy" rating on the stock in a report on Thursday, April 16th. Barclays reaffirmed an "overweight" rating and set a $134.00 price target (up from $132.00) on shares of ServiceNow in a research report on Tuesday, May 5th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $121.00 target price on shares of ServiceNow in a report on Tuesday, May 5th. Finally, Capital One Financial lifted their price objective on shares of ServiceNow from $105.00 to $120.00 and gave the company an "overweight" rating in a research note on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $141.47.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow rallied after reports that a large international electronics company is teaming up with the company on a new AI-powered product that will be available on ServiceNow’s platform, reinforcing its role in enterprise AI. Why ServiceNow Stock Crushed it on Thursday
• Positive Sentiment: Truist Financial raised its price target on ServiceNow from $120 to $130 and kept a buy rating, signaling continued analyst confidence in the company’s growth prospects. Benzinga report on Truist price target increase
• Positive Sentiment: Investor sentiment around software improved as AI spending expectations shifted in favor of application software, helping ServiceNow participate in the broader rotation toward software names. Chip Stocks Drop 12% as Software Rebounds in AI Trade Shift
• Neutral Sentiment: Several market updates described ServiceNow as consolidating or trading flat while investors digested the AI partnership news and a more constructive analyst tone, suggesting a pause after the recent move rather than a fresh fundamental shift. ServiceNow Stock Consolidates as Accenture Launches Agentic AI Offerings
• Negative Sentiment: Friday trading saw ServiceNow slip as investors appeared to take profits and reassess whether the recent AI enthusiasm has already been priced in. ServiceNow Stock Falls Friday: What's Going On?

Insider Activity

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total value of $130,845.00. Following the completion of the transaction, the director owned 44,930 shares of the company's stock, valued at approximately $3,919,243.90. The trade was a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anita M. Sands sold 16,445 shares of the company's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the transaction, the director owned 30,090 shares of the company's stock, valued at approximately $2,712,312.60. This trade represents a 35.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 28,071 shares of company stock worth $2,529,956 in the last ninety days. Corporate insiders own 0.34% of the company's stock.

ServiceNow Company Profile

ServiceNow NYSE: NOW is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company's flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

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