Generali Investments Management Co LLC Sells 29,374 Shares of ServiceNow, Inc. $NOW

Key Points

• Generali Investments Management cut its ServiceNow stake by 58.9% in the third quarter, selling 29,374 shares and retaining 20,491 shares valued at approximately $2.75 million. Institutional investors collectively own 87.18% of the company.
• ServiceNow reported quarterly revenue of $3.99 billion, up 24% year over year, and EPS of $0.90, exceeding analyst expectations of $3.93 billion in revenue and $0.86 EPS.
• Analyst sentiment remains favorable, with a “Moderate Buy” consensus and an average price target of $151.73; however, shares trade at a high trailing P/E ratio of 88.58, while insiders have sold about $1.94 million of stock over the past three months.

Generali Investments Management Co LLC decreased its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 58.9% during the 3rd quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 20,491 shares of the information technology services provider's stock after selling 29,374 shares during the quarter. Generali Investments Management Co LLC's holdings in ServiceNow were worth $2,746,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in NOW. BlackRock Inc. purchased a new position in shares of ServiceNow during the second quarter valued at approximately $9,536,615,000. Bank of New York Mellon Corp bought a new stake in ServiceNow during the second quarter worth $712,573,000. Legal & General Group Plc bought a new stake in ServiceNow during the second quarter worth $641,888,000. Bank of America Corp DE purchased a new stake in ServiceNow in the 2nd quarter valued at $627,355,000. Finally, Deutsche Bank AG purchased a new stake in ServiceNow in the 2nd quarter valued at $595,157,000. Institutional investors and hedge funds own 87.18% of the company's stock.

ServiceNow Price Performance

Shares of NYSE:NOW opened at $141.74 on Monday. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The firm has a market capitalization of $146.56 billion, a PE ratio of 88.58, a P/E/G ratio of 2.61 and a beta of 0.99. ServiceNow, Inc. has a twelve month low of $81.24 and a twelve month high of $192.97. The company has a 50-day moving average price of $135.20 and a two-hundred day moving average price of $113.73.

ServiceNow (NYSE:NOW - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.86 by $0.04. The business had revenue of $3.99 billion for the quarter, compared to analysts' expectations of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The business's revenue for the quarter was up 24.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.81 EPS. Equities analysts forecast that ServiceNow, Inc. will post 2.22 EPS for the current year.

Analyst Ratings Changes

A number of research firms have issued reports on NOW. Oppenheimer reaffirmed an "outperform" rating and set a $165.00 price objective (up from $140.00) on shares of ServiceNow in a report on Tuesday, October 13th. Morgan Stanley set a $180.00 target price on shares of ServiceNow in a report on Tuesday, July 21st. CLSA began coverage on shares of ServiceNow in a report on Monday, July 20th. They issued an "underperform" rating and a $72.00 target price for the company. Piper Sandler raised their price target on shares of ServiceNow from $140.00 to $175.00 and gave the company an "overweight" rating in a research report on Friday. Finally, DA Davidson set a $170.00 price target on shares of ServiceNow and gave the stock a "buy" rating in a report on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $151.73.

Insider Activity at ServiceNow

In other news, insider Jacqueline Canney sold 7,847 shares of the company's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the sale, the insider directly owned 30,042 shares in the company, valued at $4,145,796. This represents a 20.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the company's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the transaction, the insider directly owned 18,305 shares in the company, valued at approximately $2,706,760.35. The trade was a 10.00% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 14,081 shares of company stock worth $1,937,904. 0.34% of the stock is owned by company insiders.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Piper Sandler raised its price target to $175 from $140 and maintained an “overweight” rating, implying meaningful upside and reflecting confidence in ServiceNow’s growth outlook. ServiceNow Stock Trending: Employees Build AI Agents with Nvidia Oversight
• Positive Sentiment: ServiceNow introduced new EmployeeWorks capabilities that allow employees to build AI agents without coding, along with an Nvidia-backed AI Passport designed to manage permissions, business context and emergency controls for AI agents. These products could strengthen adoption of ServiceNow’s workflow and governance platform. ServiceNow introduces the third generation of its employee-centric AI harness
• Positive Sentiment: Recent coverage highlights ServiceNow’s deep integration into enterprise systems, strong customer retention and consistent revenue growth. Analysts also expect potential support from customer upgrades, security-product demand and U.S. federal spending. ServiceNow stock rises as investors rotate to enterprise software stocks
• Neutral Sentiment: ServiceNow’s shares benefited previously from a denial of reports that it was interested in acquiring AI startup Decagon, reducing concerns about a potentially expensive acquisition. That benefit has faded as broader market sentiment has deteriorated. ServiceNow Climbs After Denying Decagon Acquisition Interest
• Negative Sentiment: Enterprise software stocks are falling as AI-financing concerns spread. Investors appear to be taking profits and reducing exposure to expensive AI beneficiaries, with ServiceNow declining alongside Palantir and Salesforce despite its improving AI product portfolio. Enterprise Software Stocks Fall as AI Financing Worries Spread

ServiceNow Company Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company's products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.

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