Ironwood Investment Counsel LLC Makes New Investment in ServiceNow, Inc. $NOW

Key Points

• Ironwood Investment Counsel LLC opened a new position in ServiceNow during the first quarter, buying 22,950 shares valued at about $2.4 million.
• ServiceNow continues to draw positive analyst attention, with multiple firms issuing or reiterating buy ratings and several raising price targets ahead of earnings. The average analyst target now stands at $141.03.
• The company recently posted strong quarterly results, with revenue up 22.1% year over year and EPS matching expectations at $0.97. However, insiders have also been selling shares, and the stock still faces concerns about valuation and execution.

Ironwood Investment Counsel LLC bought a new position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 22,950 shares of the information technology services provider's stock, valued at approximately $2,399,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in NOW. Millstone Evans Group LLC grew its holdings in ServiceNow by 400.0% during the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC increased its holdings in shares of ServiceNow by 540.0% in the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 135 shares in the last quarter. Blueline Advisors LLC acquired a new stake in shares of ServiceNow in the fourth quarter valued at approximately $25,000. Measured Wealth Private Client Group LLC raised its position in ServiceNow by 560.0% in the 4th 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 last quarter. Finally, Wealth Watch Advisors INC lifted its holdings in ServiceNow by 432.3% during the 4th quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider's stock worth $25,000 after buying an additional 134 shares in the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: TD Cowen reaffirmed its buy rating on ServiceNow and set a $140 price target, implying meaningful upside from current levels. Benzinga report on TD Cowen rating
• Positive Sentiment: BNP Paribas and RBC Capital both raised their views on ServiceNow ahead of earnings, citing conservative guidance, improving channel feedback, and stronger demand signals. ServiceNow (NOW) Stock Receives Dual Upgrades Ahead of Q2 Results
• Positive Sentiment: Several analysts argue ServiceNow could benefit from continued AI adoption and subscription growth, which may help support an earnings beat or solid outlook when Q2 results are reported. ServiceNow Set to Report Q2 Earnings: Buy, Sell or Hold the Stock?
• Neutral Sentiment: Media coverage comparing ServiceNow with UiPath highlights agentic AI as a major long-term opportunity, but this is more of a strategic theme than an immediate catalyst. UiPath Vs. ServiceNow: Which Agentic AI Stock Is the Better Buy?
• Negative Sentiment: Some analysts and commentators warn that rising costs, competition, and still-rich valuation multiples could limit upside if Q2 results or guidance disappoint. ServiceNow Set to Report Q2 Earnings: Buy, Sell or Hold the Stock?
• Negative Sentiment: ServiceNow remains down sharply over the past year, and some investors still question whether the stock deserves a premium multiple after the selloff. Can ServiceNow (NOW) Trade At A Premium After A 46% Drop?

Insider Buying and Selling at ServiceNow

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction dated Thursday, May 14th. The shares were 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 in the company, valued at $3,919,243.90. This represents a 3.23% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anita M. Sands sold 16,445 shares of the firm's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the transaction, the director owned 30,090 shares of the company's stock, valued at $2,712,312.60. The trade was a 35.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 28,071 shares of company stock worth $2,529,956 in the last three months. 0.34% of the stock is currently owned by company insiders.

ServiceNow Price Performance

NYSE NOW opened at $103.40 on Monday. The business has a 50 day simple moving average of $103.97 and a 200 day simple moving average of $109.27. ServiceNow, Inc. has a 52-week low of $81.24 and a 52-week high of $210.20. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The stock has a market cap of $106.60 billion, a price-to-earnings ratio of 61.62, a PEG ratio of 1.73 and a beta of 0.96.

ServiceNow (NYSE:NOW - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting analysts' consensus estimates of $0.97. The firm had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The company's revenue for the quarter was up 22.1% compared to the same quarter last year. During the same period in the prior year, the business earned $0.81 EPS. Analysts anticipate that ServiceNow, Inc. will post 2.33 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of research analysts have commented on NOW shares. Bank of America started coverage on ServiceNow in a research report on Monday, May 18th. They issued a "buy" rating and a $130.00 price objective on the stock. Citigroup reissued a "buy" rating and set a $156.00 price objective (down from $158.00) on shares of ServiceNow in a report on Wednesday. Guggenheim upgraded shares of ServiceNow from a "neutral" rating to a "buy" rating and set a $125.00 target price on the stock in a research report on Wednesday, July 1st. Barclays reissued an "overweight" rating and set a $134.00 price target (up from $132.00) on shares of ServiceNow in a research note on Tuesday, May 5th. Finally, JPMorgan Chase & Co. cut their price objective on shares of ServiceNow from $195.00 to $145.00 and set an "overweight" rating on the stock in a report on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, four have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $141.03.

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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