HighPoint Advisor Group LLC Boosts Position in ServiceNow, Inc. $NOW

Key Points

• HighPoint Advisor Group LLC increased its ServiceNow stake by 377% in the fourth quarter, and several other hedge funds also significantly boosted their holdings. Institutional investors now own 87.18% of the company.
• Recent news flow around ServiceNow has been mostly positive, including an expanded FedEx partnership, analyst support for the company’s AI and automation platform, and new AI governance initiatives through its Control Tower tools.
• ServiceNow reported quarterly results that met EPS expectations at $0.97 and slightly topped revenue estimates with $3.77 billion, but the stock has still been under pressure and was trading well below its 52-week high.

HighPoint Advisor Group LLC boosted its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 377.0% during the 4th quarter, according to its most recent disclosure with the SEC. The firm owned 22,984 shares of the information technology services provider's stock after buying an additional 18,166 shares during the period. HighPoint Advisor Group LLC's holdings in ServiceNow were worth $3,521,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of the business. Cohen Klingenstein LLC grew its position in shares of ServiceNow by 400.0% during the fourth quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider's stock worth $1,532,000 after buying an additional 8,000 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. grew its position in shares of ServiceNow by 385.9% during the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider's stock worth $398,202,000 after buying an additional 2,064,440 shares in the last quarter. Torray Investment Partners LLC grew its position in shares of ServiceNow by 390.5% during the fourth quarter. Torray Investment Partners LLC now owns 40,629 shares of the information technology services provider's stock worth $6,224,000 after buying an additional 32,345 shares in the last quarter. Jennison Associates LLC grew its position in shares of ServiceNow by 280.1% during the fourth quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider's stock worth $1,291,758,000 after buying an additional 6,213,762 shares in the last quarter. Finally, Narwhal Capital Management grew its position in shares of ServiceNow by 763.5% during the fourth quarter. Narwhal Capital Management now owns 16,977 shares of the information technology services provider's stock worth $2,601,000 after buying an additional 15,011 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: FedEx is expanding its partnership with ServiceNow, which suggests continued enterprise demand for ServiceNow’s workflow and automation tools and could strengthen future revenue opportunities. FedEx expands ServiceNow partnership
• Positive Sentiment: Analysts remain constructive on ServiceNow, with BMO Capital reaffirming an Outperform rating and a $115 price target, citing the platform’s defensive positioning around autonomous execution, governance, and context. Why analysts still favor ServiceNow
• Positive Sentiment: ServiceNow is highlighting new AI governance tools through its AI Control Tower and related partnerships, which may appeal to enterprises looking for more control over AI agents and compliance. ServiceNow seeks AI control role as stock struggles and partnerships grow
• Neutral Sentiment: ServiceNow plans to raise $4 billion in a bond sale, which could provide financing flexibility but also adds leverage and is not a direct operating catalyst. Software Firm ServiceNow Plans to Raise $4 Billion in Bond Sale
• Neutral Sentiment: Recent commentary about the stock “resetting” after a large decline reflects valuation debate rather than a clear new fundamental development. Is ServiceNow resetting after a 52% slide and DCF upside scenario?

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Sanford C. Bernstein reissued an "outperform" rating and set a $236.00 price target (up from $226.00) on shares of ServiceNow in a research report on Wednesday, May 6th. Morgan Stanley decreased their price target on shares of ServiceNow from $210.00 to $180.00 and set an "overweight" rating for the company in a research report on Thursday, April 23rd. Cantor Fitzgerald decreased their price target on shares of ServiceNow to $122.00 and set an "overweight" rating for the company in a research report on Thursday, April 23rd. FBN Securities decreased their price target on shares of ServiceNow from $160.00 to $120.00 in a research report on Thursday, April 23rd. Finally, DA Davidson reissued a "buy" rating and set a $190.00 price target on shares of ServiceNow in a research report on Tuesday, May 5th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $144.71.

ServiceNow Stock Performance

Shares of NOW opened at $91.51 on Tuesday. The business's fifty day moving average price is $102.18 and its 200 day moving average price is $131.38. ServiceNow, Inc. has a 12-month low of $81.24 and a 12-month high of $211.48. The stock has a market capitalization of $94.35 billion, a PE ratio of 54.53, a price-to-earnings-growth ratio of 1.61 and a beta of 0.82. 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 (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The firm had revenue of $3.77 billion for the quarter, compared to analysts' expectations of $3.75 billion. During the same period last year, the business posted $0.81 earnings per share. The firm's revenue for the quarter was up 22.1% on a year-over-year basis. Equities research analysts forecast that ServiceNow, Inc. will post 2.35 EPS for the current year.

Insider Transactions at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total transaction of $151,755.00. Following the transaction, the director directly owned 46,430 shares in the company, valued at $4,697,323.10. This trade represents a 3.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the firm's stock in a transaction on Friday, February 13th. The stock was sold at an average price of $105.71, for a total value of $147,994.00. Following the transaction, the insider owned 26,314 shares in the company, valued at $2,781,652.94. This trade represents a 5.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 25,164 shares of company stock valued at $2,497,021. Company insiders own 0.34% of the company's stock.

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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