HighTower Advisors LLC Buys 385,767 Shares of ServiceNow, Inc. $NOW

Key Points

• HighTower Advisors LLC sharply increased its ServiceNow position in the fourth quarter, buying 385,767 shares and lifting its stake by 397.4% to 482,830 shares worth about $73.97 million.
• ServiceNow reported Q1 revenue of $3.77 billion and EPS of $0.97, both in line with or slightly ahead of expectations, while revenue rose 22.1% year over year.
• Analysts remain broadly positive on the stock despite recent weakness, with Bank of America initiating coverage at a Buy rating and a $130 target; the consensus rating is Moderate Buy with an average target price of $141.89.

HighTower Advisors LLC increased its stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 397.4% in the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 482,830 shares of the information technology services provider's stock after buying an additional 385,767 shares during the period. HighTower Advisors LLC's holdings in ServiceNow were worth $73,965,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. IAG Wealth Partners LLC grew its holdings in ServiceNow by 200.0% in the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock valued at $25,000 after buying an additional 18 shares in the last quarter. Wealth Watch Advisors INC acquired a new position in ServiceNow in the 3rd quarter valued at $29,000. Texas Capital Bancshares Inc TX acquired a new position in ServiceNow in the 3rd quarter valued at $37,000. Ameriflex Group Inc. grew its holdings in ServiceNow by 187.5% in the 3rd quarter. Ameriflex Group Inc. now owns 46 shares of the information technology services provider's stock valued at $42,000 after buying an additional 30 shares in the last quarter. Finally, Kelleher Financial Advisors acquired a new position in ServiceNow in the 3rd quarter valued at $50,000. 87.18% of the stock is owned by institutional investors and hedge funds.

ServiceNow Stock Up 1.3%

NYSE NOW opened at $103.13 on Thursday. The business has a fifty day moving average price of $99.35 and a two-hundred day moving average price of $126.89. 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 fifty-two week low of $81.24 and a fifty-two week high of $211.48. The stock has a market capitalization of $106.33 billion, a PE ratio of 61.46, a PEG ratio of 1.85 and a beta of 0.82.

ServiceNow (NYSE:NOW - Get Free Report) last released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share 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 during the quarter, compared to analysts' expectations of $3.75 billion. During the same period in the prior year, the company earned $0.81 earnings per share. The company's quarterly revenue was up 22.1% on a year-over-year basis. Equities analysts expect that ServiceNow, Inc. will post 2.35 earnings per share for the current fiscal year.

Insider Activity at ServiceNow

In other news, insider Jacqueline P. Canney sold 8,927 shares of the stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the completion of the transaction, the insider owned 29,531 shares of the company's stock, valued at approximately $2,645,977.60. This represents a 23.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the 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 completion of the transaction, the director directly owned 44,930 shares of the company's stock, valued at $3,919,243.90. This trade represents a 3.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 31,767 shares of company stock worth $2,906,098 over the last three months. 0.34% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on NOW shares. Bank of America started coverage on shares of ServiceNow in a research report on Monday. They set a "buy" rating and a $130.00 target price on the stock. Needham & Company LLC restated a "buy" rating and set a $115.00 target price on shares of ServiceNow in a research report on Tuesday, May 5th. Wall Street Zen lowered shares of ServiceNow from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Wells Fargo & Company decreased their price target on ServiceNow from $185.00 to $160.00 and set an "overweight" rating on the stock in a research report on Thursday, April 23rd. Finally, Argus decreased their price target on ServiceNow from $180.00 to $134.00 and set a "buy" rating on the stock in a research report on Friday, April 24th. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $141.89.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America restarted coverage on ServiceNow with a Buy rating and a $130 target, calling it an AI winner in the emerging agentic AI era. BofA Reinstates Coverage of ServiceNow, Salesforce. It Says 1 Is an AI Beneficiary.
• Positive Sentiment: Several articles said Wall Street is warming to ServiceNow because its workflow software could serve as a control layer for AI agents, easing fears that AI will replace its business. Wall Street Is Warming Up to ServiceNow Stock. That’s Because It’s Now a Bet on Agentic AI.
• Positive Sentiment: Analysts and commentators highlighted that the recent selloff may have been overdone, with ServiceNow’s valuation looking more attractive after a sharp yearlong decline. Assessing ServiceNow (NOW) Valuation After A Year Of Sharp Share Price Declines
• Positive Sentiment: Media and analyst pieces also framed the stock’s rebound as part of a broader rotation back into software names, with ServiceNow singled out as one of the sector leaders. ServiceNow and Snowflake Stocks Trade Up, What You Need To Know
• Neutral Sentiment: Some reports noted that the stock has fallen sharply over the past year despite revenue and profit growth, so investors are still weighing strong fundamentals against a still-extended valuation. After a 50% Drop, Is ServiceNow Stock Worth Buying?
• Negative Sentiment: There are still lingering concerns that AI disruption could pressure traditional enterprise software, and some commentary warned the recent bounce could fade if those fears return. ServiceNow stock flashes a death cross amid rising SaaSpocalypse concerns

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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