IronBridge Private Wealth LLC Buys 13,015 Shares of ServiceNow, Inc. $NOW

Key Points

• IronBridge Private Wealth increased its ServiceNow stake by 61.9% in the third quarter, adding 13,015 shares to hold 34,027 shares worth about $4.56 million.
• ServiceNow’s third-quarter revenue rose 20.5% year over year to $4.11 billion, slightly beating expectations, while EPS of $1.00 narrowly missed consensus.
• Investor concerns about a softer fourth-quarter backlog-growth outlook have weighed on the stock, despite analysts’ consensus “Moderate Buy” rating and $154.50 price target.

IronBridge Private Wealth LLC lifted its position in ServiceNow, Inc. (NYSE:NOW - Free Report) by 61.9% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 34,027 shares of the information technology services provider's stock after acquiring an additional 13,015 shares during the period. ServiceNow accounts for 1.3% of IronBridge Private Wealth LLC's holdings, making the stock its 24th largest position. IronBridge Private Wealth LLC's holdings in ServiceNow were worth $4,560,000 at the end of the most recent quarter.

Other large investors also recently bought and sold shares of the company. Paragon Advisors LLC lifted its position in ServiceNow by 1.3% in the third quarter. Paragon Advisors LLC now owns 29,790 shares of the information technology services provider's stock valued at $3,992,000 after buying an additional 392 shares during the last quarter. M Holdings Securities Inc. boosted its stake in ServiceNow by 87.1% during the third quarter. M Holdings Securities Inc. now owns 27,091 shares of the information technology services provider's stock worth $3,630,000 after buying an additional 12,611 shares during the period. Candriam S.C.A. increased its position in shares of ServiceNow by 45.9% during the third quarter. Candriam S.C.A. now owns 1,819,501 shares of the information technology services provider's stock valued at $244,722,000 after acquiring an additional 572,638 shares during the last quarter. Cooper Haims Advisors LLC acquired a new stake in shares of ServiceNow during the third quarter valued at about $206,000. Finally, Ethic Inc. increased its position in shares of ServiceNow by 8.8% during the third quarter. Ethic Inc. now owns 155,519 shares of the information technology services provider's stock valued at $20,841,000 after acquiring an additional 12,574 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

ServiceNow Trading Down 0.1%

NYSE:NOW opened at $101.91 on Monday. The stock has a 50-day simple moving average of $136.31 and a 200-day simple moving average of $114.81. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.72 and a current ratio of 0.72. The stock has a market cap of $105.78 billion, a P/E ratio of 73.32, a P/E/G ratio of 1.99 and a beta of 1.00. ServiceNow, Inc. has a 1 year low of $81.24 and a 1 year high of $175.00.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.02 by ($0.02). ServiceNow had a return on equity of 15.17% and a net margin of 9.36%. The firm had revenue of $4.11 billion for the quarter, compared to analysts' expectations of $4.09 billion. During the same quarter in the prior year, the business earned $4.82 EPS. The company's quarterly revenue was up 20.5% compared to the same quarter last year. As a group, analysts anticipate that ServiceNow, Inc. will post 2.12 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on NOW shares. CLSA began coverage on shares of ServiceNow in a report on Monday, July 20th. They issued an "underperform" rating and a $72.00 price objective on the stock. Royal Bank Of Canada set a $165.00 target price on shares of ServiceNow and gave the company an "outperform" rating in a report on Thursday, October 29th. Wells Fargo & Company cut their target price on ServiceNow from $190.00 to $175.00 and set an "overweight" rating on the stock in a research report on Thursday, October 29th. Piper Sandler restated an "overweight" rating and set a $175.00 price target on shares of ServiceNow in a research note on Thursday, October 29th. Finally, BMO Capital Markets raised their price target on ServiceNow from $115.00 to $118.00 and gave the stock an "outperform" rating in a research report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, ServiceNow currently has a consensus rating of "Moderate Buy" and a consensus price target of $154.50.

Insider Activity

In other news, Director Paul Chamberlain sold 2,700 shares of ServiceNow stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the transaction, the director directly owned 43,990 shares of the company's stock, valued at $5,960,645. The trade was a 5.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Paul Fipps sold 2,034 shares of the company's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the sale, the insider owned 18,305 shares of the company's stock, valued at approximately $2,706,760.35. This trade represents a 10.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 14,081 shares of company stock valued at $1,937,904. 0.34% of the stock is currently owned by company insiders.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is broadening its agentic-AI partnership with LTM, aiming to take AI workflows to more enterprise customers. The company also highlighted deployments and selections by customers including LTM, KORE and Keysight, supporting its case that businesses are adopting its AI platform. ServiceNow expands enterprise AI partnerships
• Positive Sentiment: ServiceNow raised its AI contract-value target to $1.7 billion, and its CFO described fears that AI will disrupt the company’s business as unfounded. These points may help reassure investors about AI’s potential as a growth driver. ServiceNow Q3 earnings call highlights
• Neutral Sentiment: The NBA extended its partnership with ServiceNow, adopting EmployeeWorks for employee self-service and workplace requests. The deal adds a customer use case, though its near-term financial impact was not specified. NBA and ServiceNow extend partnership
• Negative Sentiment: Investors are focused on the outlook: despite a third-quarter revenue beat, ServiceNow’s fourth-quarter current remaining performance obligations growth forecast of 18.5% disappointed the market and prompted concerns about slowing backlog growth. The stock has fallen sharply since the report. ServiceNow outlook and AI concerns
• Negative Sentiment: ServiceNow is undertaking another round of layoffs, while third-quarter severance costs rose to $87 million from $24 million a year earlier. Separate reports that the board approved $127 million in retention awards as the company cuts jobs may also draw scrutiny over costs and priorities. ServiceNow layoffs and severance costs
• Negative Sentiment: ETFs were net sellers of $29.5 million in ServiceNow shares on Wednesday, adding a modest near-term headwind. ETF selling of ServiceNow shares

ServiceNow Company Profile

ServiceNow, Inc provides cloud-based software that helps organizations manage digital workflows and automate business processes. Founded in 2004 by Fred Luddy, the company began with a focus on IT service management and has expanded its platform to support a range of enterprise operations.

Its products include tools for IT service and operations management, customer service, human resources, security, and application development. ServiceNow also offers artificial intelligence capabilities, including tools designed to help organizations automate tasks and find information across workflows.

ServiceNow serves businesses and public-sector organizations around the world.

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