Hilltop Holdings Inc. Decreases Holdings in ServiceNow, Inc. $NOW

Key Points

• Hilltop Holdings cut its ServiceNow stake by 66.9% in the first quarter, selling 13,393 shares and retaining 6,639 shares valued at approximately $694,000.
• ServiceNow reported quarterly revenue of $3.99 billion, up 24% year over year, and adjusted earnings of $0.90 per share, exceeding analyst estimates.
• Wall Street remains broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $143.39, although insider and institutional share sales indicate some portfolio rebalancing.

Hilltop Holdings Inc. decreased its stake in ServiceNow, Inc. (NYSE:NOW - Free Report) by 66.9% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 6,639 shares of the information technology services provider's stock after selling 13,393 shares during the quarter. Hilltop Holdings Inc.'s holdings in ServiceNow were worth $694,000 as of its most recent SEC filing.

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

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Truist Financial upped their price target on ServiceNow from $120.00 to $130.00 and gave the company a "buy" rating in a research note on Thursday, July 9th. BTIG Research reissued a "buy" rating and set a $150.00 price objective on shares of ServiceNow in a research report on Wednesday, July 22nd. UBS Group set a $248.00 price objective on shares of ServiceNow in a report on Thursday. DA Davidson set a $170.00 target price on shares of ServiceNow and gave the company a "buy" rating in a research report on Monday, July 20th. Finally, Robert W. Baird increased their target price on shares of ServiceNow from $118.00 to $125.00 and gave the stock an "outperform" rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, ServiceNow currently has a consensus rating of "Moderate Buy" and a consensus target price of $143.39.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s Q2 results showed robust growth, with revenue up about 24% year over year and subscription revenue accelerating, reinforcing that demand for its platform remains strong. Article Title
• Positive Sentiment: Management raised guidance and highlighted AI momentum, including AI contract value topping $1 billion and expanding enterprise adoption, which supports the case for continued growth. Article Title
• Positive Sentiment: Several analysts raised or reaffirmed bullish ratings and price targets after earnings, reflecting renewed confidence in ServiceNow’s outlook and valuation upside. Article Title
• Positive Sentiment: New partnerships and channel expansions, including deals with Experian, TeamViewer, and Exclusive Networks, suggest broader adoption of ServiceNow’s AI and cybersecurity offerings. Article Title
• Neutral Sentiment: Investors are also watching mixed signals from insider and institutional trading, with some large funds trimming positions even as others add shares; this appears more like portfolio rebalancing than a clear fundamental warning. Article Title
• Negative Sentiment: Despite the earnings beat, some commentary says the stock’s rally may be vulnerable if AI disruption fears return, especially around usage-based pricing and long-term software demand. Article Title

Insider Activity

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director directly owned 44,930 shares of the company's stock, valued at $3,919,243.90. This represents a 3.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the sale, the insider owned 12,072 shares in the company, valued at approximately $1,189,212.72. This trade represents a 7.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 19,144 shares of company stock valued at $1,730,097. 0.34% of the stock is currently owned by company insiders.

ServiceNow Price Performance

NOW opened at $98.77 on Monday. The stock's 50-day moving average price is $104.77 and its 200 day moving average price is $107.42. ServiceNow, Inc. has a 12-month low of $81.24 and a 12-month high of $201.15. The firm has a market cap of $102.13 billion, a price-to-earnings ratio of 61.73, a PEG ratio of 1.67 and a beta of 0.96. 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 released its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.04. The company had revenue of $3.99 billion during 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%.ServiceNow's revenue was up 24.0% compared to the same quarter last year. During the same period in the previous year, the company posted $0.81 EPS. As a group, sell-side analysts expect that ServiceNow, Inc. will post 2.33 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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