Great Lakes Advisors LLC Makes New Investment in ServiceNow, Inc. $NOW

Key Points

• Great Lakes Advisors initiated a ServiceNow position by buying 10,286 shares worth approximately $1.02 million in the second quarter. Institutional investors collectively own 87.18% of the company.
• ServiceNow reported quarterly earnings and revenue above expectations, with revenue rising 24% year over year to $3.99 billion. Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $144.24.
• The company’s AI outlook received support from an expanded Tech Mahindra partnership and higher analyst price targets, though investors remain watchful of AI-native competitors and ServiceNow’s premium valuation.

Great Lakes Advisors LLC bought a new position in ServiceNow, Inc. (NYSE:NOW - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor bought 10,286 shares of the information technology services provider's stock, valued at approximately $1,021,000.

Several other institutional investors and hedge funds also recently made changes to their positions in NOW. Brighton Jones LLC boosted its holdings in ServiceNow by 1.1% during the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider's stock worth $2,919,000 after purchasing an additional 30 shares during the last quarter. Sivia Capital Partners LLC grew its position in ServiceNow by 4.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider's stock worth $861,000 after purchasing an additional 34 shares in the last quarter. United Bank increased its stake in ServiceNow by 15.5% in the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider's stock valued at $1,562,000 after buying an additional 204 shares during the last quarter. Riggs Asset Managment Co. Inc. increased its stake in ServiceNow by 2.2% in the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider's stock valued at $1,976,000 after buying an additional 42 shares during the last quarter. Finally, Nebula Research & Development LLC lifted its position in shares of ServiceNow by 205.1% during the 2nd quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider's stock worth $931,000 after buying an additional 609 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow expanded its multi-year partnership with Tech Mahindra to help enterprises move AI projects from pilot programs into production. The “Client Zero” approach combines ServiceNow’s AI platform with Tech Mahindra’s industry expertise, potentially increasing adoption, automation revenue and measurable customer outcomes. Tech Mahindra and ServiceNow Expand Partnership to Deliver Production-Ready Enterprise AI at Scale
• Positive Sentiment: Bank of America raised its ServiceNow price target to $150, citing the company’s positioning to monetize artificial intelligence as concerns about AI disruption to traditional software fade. The move contributed to broader bullish sentiment across software stocks. Bank of America Increases ServiceNow Price Target to $150
• Positive Sentiment: ServiceNow has gained substantially since its latest earnings report, which beat estimates on both adjusted earnings and revenue. Quarterly revenue increased 24% year over year, reinforcing the view that the company remains a leading enterprise AI and workflow platform. ServiceNow Up 41.1% Since Last Earnings Report
• Positive Sentiment: ServiceNow was also selected as a CNBC “Final Trade,” providing additional visibility and signaling continued support from some professional investors. Final Trades: ServiceNow, Vertex and Uber
• Neutral Sentiment: Despite the favorable company news, midday AI buying has been concentrated in government-facing companies such as Palantir and BigBear.ai rather than enterprise software, limiting near-term upside for NOW. How Are Traders Picking the Software Winners?
• Negative Sentiment: Investors continue to monitor competitive threats from newer AI-native automation platforms, including Serval, as well as ServiceNow’s premium valuation. Those concerns may encourage profit-taking after the stock’s sharp post-earnings advance. Serval Wants To Replace ServiceNow With AI That Builds Enterprise Automation

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. DA Davidson set a $170.00 target price on ServiceNow and gave the stock a "buy" rating in a research note on Monday, July 20th. JPMorgan Chase & Co. increased their price target on ServiceNow from $145.00 to $150.00 and gave the company an "overweight" rating in a research report on Thursday, July 23rd. Needham & Company LLC reiterated a "buy" rating and set a $115.00 price target on shares of ServiceNow in a report on Thursday, July 23rd. Bank of America upped their price objective on ServiceNow from $130.00 to $150.00 and gave the company a "buy" rating in a research note on Wednesday. Finally, Citic Securities lowered their target price on ServiceNow from $168.00 to $140.00 and set a "buy" rating on the stock in a research note on Thursday, May 21st. One research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, ServiceNow has a consensus rating of "Moderate Buy" and an average price target of $144.24.

Insider Transactions at ServiceNow

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $125.60, for a total value of $188,400.00. Following the completion of the transaction, the director owned 46,690 shares in the company, valued at $5,864,264. This trade represents a 3.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.34% of the company's stock.

ServiceNow Stock Down 0.8%

ServiceNow stock opened at $128.73 on Friday. The firm has a 50 day simple moving average of $108.88 and a 200 day simple moving average of $105.74. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $194.73. The firm has a market capitalization of $133.11 billion, a price-to-earnings ratio of 80.46, a P/E/G ratio of 2.26 and a beta of 0.94.

ServiceNow (NYSE:NOW - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.04. The firm had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The business's quarterly revenue was up 24.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.81 earnings per share. On average, analysts predict that ServiceNow, Inc. will post 2.24 earnings per share for the current year.

ServiceNow 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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