Hsbc Holdings PLC Purchases 2,852,078 Shares of ServiceNow, Inc. $NOW

Key Points

• Hsbc Holdings PLC significantly increased its stake in ServiceNow during the fourth quarter, buying 2.85 million additional shares and raising its position by 442% to 3.50 million shares worth about $535.9 million.
• Institutional interest in ServiceNow remains broad, with several other hedge funds also adding shares and 87.18% of the stock now held by institutional investors and hedge funds.
• ServiceNow’s latest results were in line with expectations, as it reported $0.97 EPS and $3.77 billion in revenue, while analysts maintain a generally bullish outlook with a consensus rating of Moderate Buy and an average price target of $142.17.

Hsbc Holdings PLC lifted its position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 442.0% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 3,497,373 shares of the information technology services provider's stock after purchasing an additional 2,852,078 shares during the period. Hsbc Holdings PLC owned 0.33% of ServiceNow worth $535,902,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also added to or reduced their stakes in NOW. Sentinel Dome Partners LLC bought a new stake in ServiceNow in the 4th quarter valued at $2,183,000. Pure Financial Advisors LLC grew its holdings in ServiceNow by 399.2% in the 4th quarter. Pure Financial Advisors LLC now owns 5,961 shares of the information technology services provider's stock valued at $913,000 after buying an additional 4,767 shares in the last quarter. Rehmann Capital Advisory Group increased its position in ServiceNow by 362.6% during the 4th quarter. Rehmann Capital Advisory Group now owns 4,793 shares of the information technology services provider's stock worth $735,000 after buying an additional 3,757 shares during the period. SHP Wealth Management bought a new position in ServiceNow during the 4th quarter worth $150,000. Finally, Stenger Family Office LLC lifted its holdings in shares of ServiceNow by 173.4% during the fourth quarter. Stenger Family Office LLC now owns 8,121 shares of the information technology services provider's stock worth $1,244,000 after buying an additional 5,151 shares in the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on NOW shares. UBS Group reissued an "outperform" rating on shares of ServiceNow in a research report on Tuesday, May 26th. Needham & Company LLC reaffirmed a "buy" rating and set a $115.00 price target on shares of ServiceNow in a research report on Tuesday, May 5th. Robert W. Baird dropped their price objective on shares of ServiceNow from $125.00 to $118.00 and set an "outperform" rating for the company in a research note on Thursday, April 23rd. BNP Paribas Exane raised shares of ServiceNow from a "neutral" rating to an "outperform" rating and set a $140.00 price objective for the company in a report on Monday, March 16th. Finally, BMO Capital Markets cut their price objective on shares of ServiceNow from $120.00 to $115.00 and set an "outperform" rating for the company in a report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, ServiceNow has an average rating of "Moderate Buy" and a consensus price target of $142.17.

ServiceNow Stock Up 0.5%

Shares of NOW opened at $95.51 on Friday. The firm has a 50 day simple moving average of $99.56 and a two-hundred day simple moving average of $117.81. 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 one year low of $81.24 and a one year high of $211.48. The company has a market cap of $98.47 billion, a P/E ratio of 56.92, a P/E/G ratio of 1.58 and a beta of 0.94.

ServiceNow (NYSE:NOW - Get Free Report) last issued its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting analysts' consensus estimates 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 the consensus estimate of $3.75 billion. During the same quarter last year, the business posted $0.81 EPS. The company's revenue was up 22.1% compared to the same quarter last year. Research analysts forecast that ServiceNow, Inc. will post 2.34 EPS for the current fiscal year.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow expanded its agentic AI ecosystem through new partnerships with Wipro, Digimarc, and HPE, reinforcing demand for its platform in enterprise automation and AIOps. ServiceNow (NOW) Expands Agentic AI With Wipro Digimarc And HPE Partnerships
• Positive Sentiment: Analyst-style coverage is constructive, with articles highlighting ServiceNow as a leading generative AI software name and citing strong buy ratings and upside potential from current levels. Why is ServiceNow (NOW) the Best Generative AI Software Stock to Buy in June
• Positive Sentiment: ServiceNow’s AI Control Tower is being viewed as a potential growth engine as enterprises look for governance and orchestration tools to manage expanding AI deployments. Can AI Control Tower Become ServiceNow's Next Growth Engine?
• Positive Sentiment: New ecosystem announcements with Aria Systems and Cognizant suggest ServiceNow is deepening integration across telecom and multi-agent enterprise workflows, which could support future platform adoption. Aria Systems and ServiceNow Replace Decades of Complexity by Launching the World’s First Agentic BSS for Telecoms Cognizant expands cross-platform agentic AI with new ServiceNow AI Agent interoperability
• Neutral Sentiment: Several AI infrastructure and industry commentary pieces underscore the broader demand for enterprise AI tools, but they are more thematic than directly tied to near-term ServiceNow financial results. Cloud AI Update - Exploring AI's Future Infrastructure Challenges And Solutions
• Negative Sentiment: The Seeking Alpha piece arguing that the “AI threat is overstated” implies there is still debate about whether AI could pressure software vendors, though the article itself is more reassuring than alarming for ServiceNow. ServiceNow: The AI Threat Is Overstated

Insiders Place Their Bets

In other ServiceNow news, Director Anita M. Sands sold 16,445 shares of ServiceNow stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the transaction, the director owned 30,090 shares in the company, valued at $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Jacqueline P. Canney sold 8,927 shares of the business's stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the transaction, the insider directly owned 29,531 shares of the company's stock, valued at approximately $2,645,977.60. The trade was a 23.21% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 28,071 shares of company stock worth $2,529,956 over the last 90 days. Corporate insiders own 0.34% of the company's stock.

About ServiceNow

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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