Healthcare of Ontario Pension Plan Trust Fund Has $8.49 Million Position in ServiceNow, Inc. $NOW

Key Points

• Healthcare of Ontario Pension Plan Trust Fund nearly doubled its ServiceNow position in the first quarter, acquiring 40,189 additional shares for a total stake worth approximately $8.49 million. Institutional investors collectively own 87.18% of the company.
• ServiceNow reported strong second-quarter results, with revenue up 24% year over year to $3.99 billion and EPS of $0.90, beating estimates. Management raised its full-year outlook, while AI offerings generated more than $1 billion in annual contract value.
• The stock retains a “Moderate Buy” consensus and an average analyst price target of $143.39, but investors face risks from its elevated valuation, recent restructuring-related job cuts and insider share sales.

Healthcare of Ontario Pension Plan Trust Fund lifted its position in ServiceNow, Inc. (NYSE:NOW - Free Report) by 98.0% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 81,199 shares of the information technology services provider's stock after acquiring an additional 40,189 shares during the period. Healthcare of Ontario Pension Plan Trust Fund's holdings in ServiceNow were worth $8,489,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also bought and sold shares of NOW. Millstone Evans Group LLC boosted its position in shares of ServiceNow by 400.0% during the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC increased its position in shares of ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after buying an additional 135 shares in the last quarter. Blueline Advisors LLC bought a new stake in shares of ServiceNow in the 4th quarter valued at $25,000. Measured Wealth Private Client Group LLC raised its stake in ServiceNow by 560.0% during the 4th quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after buying an additional 140 shares during the period. Finally, Wealth Watch Advisors INC raised its stake in ServiceNow by 432.3% during the 4th quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider's stock worth $25,000 after buying an additional 134 shares during the period. Institutional investors own 87.18% of the company's stock.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s second-quarter performance remains a key bullish argument: revenue grew 24% year over year to $3.99 billion, earnings exceeded estimates, large-deal activity accelerated, and management raised its full-year outlook. The company also reported more than $1 billion in annual contract value from its AI offerings. Is the Market Mispricing ServiceNow's AI Future?
• Positive Sentiment: Analysts and investors are increasingly viewing ServiceNow as an AI beneficiary rather than an AI-disruption victim. Its workflow automation platform, enterprise AI products, and potential shift toward consumption-based pricing could create additional revenue as customers deploy more AI-driven work. ServiceNow Is Building an AI Business for Enterprises
• Positive Sentiment: The company’s expanding cybersecurity business is being highlighted as another potential growth engine beyond AI, while a new integration from IP Fabric could strengthen ServiceNow’s configuration-management database offering and customer value proposition. ServiceNow’s Q2 Earnings Showed It’s More Than an AI Stock
• Neutral Sentiment: ServiceNow remains a popular “value” and turnaround discussion among analysts after falling substantially this year. The stock’s valuation is more attractive than before, but its elevated earnings multiple means investors still require sustained growth and successful AI monetization. ServiceNow's Revenue Growth Is Accelerating
• Negative Sentiment: ServiceNow cut hundreds of jobs as part of a global restructuring and efficiency push. While the reductions may improve operating discipline and align with CEO Bill McDermott’s focus on streamlining workflows, they also signal cost pressures and broader uncertainty across the software sector. ServiceNow Cuts Jobs Amid Global Restructuring and AI Focus

Insider Activity at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the company's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director owned 44,930 shares in the company, valued at approximately $3,919,243.90. This represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anita M. Sands sold 16,445 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total value 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 represents a 35.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 19,144 shares of company stock valued at $1,730,097. 0.34% of the stock is owned by insiders.

Wall Street Analyst Weigh In

NOW has been the topic of several recent analyst reports. Robert W. Baird lifted their target price on ServiceNow from $118.00 to $125.00 and gave the stock an "outperform" rating in a report on Thursday, July 23rd. Canaccord Genuity Group dropped their price target on ServiceNow from $200.00 to $145.00 and set a "buy" rating on the stock in a research report on Thursday, April 23rd. Sanford C. Bernstein reiterated an "outperform" rating and set a $248.00 price objective (up from $236.00) on shares of ServiceNow in a report on Thursday, July 23rd. Argus decreased their price objective on ServiceNow from $180.00 to $134.00 and set a "buy" rating for the company in a research report on Friday, April 24th. Finally, Jefferies Financial Group reissued a "buy" rating and set a $140.00 target price (up from $135.00) on shares of ServiceNow in a research note on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $143.39.

ServiceNow Stock Performance

Shares of NOW opened at $110.55 on Wednesday. The stock has a market capitalization of $114.30 billion, a price-to-earnings ratio of 69.09, a PEG ratio of 1.86 and a beta of 0.96. ServiceNow, Inc. has a 12 month low of $81.24 and a 12 month high of $201.15. The firm has a fifty day simple moving average of $104.99 and a 200 day simple moving average of $106.84. 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 (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same period in the previous year, the business earned $0.81 EPS. The company's revenue was up 24.0% compared to the same quarter last year. Research analysts forecast that ServiceNow, Inc. will post 2.24 EPS for the current fiscal 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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