Kovitz Investment Group Partners LLC Acquires 25,581 Shares of ServiceNow, Inc. $NOW

Key Points

• Kovitz Investment Group Partners LLC increased its ServiceNow stake by 145.5% in the fourth quarter, buying 25,581 additional shares and bringing its total holdings to 43,164 shares worth about $6.61 million.
• ServiceNow reported Q1 earnings that met expectations, posting $0.97 EPS and $3.77 billion in revenue, with revenue up 22.1% year over year.
• Despite recent insider selling and some analyst target cuts, Wall Street remains broadly positive on ServiceNow, with a Moderate Buy consensus and an average price target of $142.17.

Kovitz Investment Group Partners LLC boosted its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 145.5% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 43,164 shares of the information technology services provider's stock after purchasing an additional 25,581 shares during the quarter. Kovitz Investment Group Partners LLC's holdings in ServiceNow were worth $6,612,000 at the end of the most recent quarter.

Several other institutional investors have also recently bought and sold shares of NOW. IAG Wealth Partners LLC grew its holdings in shares of ServiceNow by 200.0% during the third 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 during the last quarter. Wealth Watch Advisors INC acquired a new stake in shares of ServiceNow in the 3rd quarter worth about $29,000. Texas Capital Bancshares Inc TX bought a new position in ServiceNow in the 3rd quarter valued at about $37,000. Ameriflex Group Inc. lifted its position 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 acquiring an additional 30 shares in the last quarter. Finally, Kelleher Financial Advisors acquired a new position in ServiceNow during the 3rd quarter valued at about $50,000. Institutional investors and hedge funds own 87.18% of the company's stock.

ServiceNow Stock Up 0.5%

NOW stock opened at $95.51 on Friday. The stock 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. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The stock's fifty day simple moving average is $99.56 and its two-hundred day simple moving average is $117.81. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting analysts' consensus estimates of $0.97. The company had revenue of $3.77 billion for the quarter, compared to analysts' expectations of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The business's revenue for the quarter was up 22.1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.81 EPS. Analysts expect that ServiceNow, Inc. will post 2.34 EPS for the current year.

Key Headlines Impacting ServiceNow

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

Insider Activity at ServiceNow

In other ServiceNow news, Director Anita M. Sands sold 16,445 shares of the business'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 transaction, the director directly 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 Securities & Exchange Commission, which is available through the SEC website. Also, insider Paul Fipps sold 1,048 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $98.51, for a total transaction of $103,238.48. Following the transaction, the insider directly owned 12,072 shares of the company's stock, valued at $1,189,212.72. This 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 three months, insiders have sold 28,071 shares of company stock worth $2,529,956. 0.34% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

NOW has been the subject of several analyst reports. Raymond James Financial lowered their price objective on ServiceNow from $160.00 to $130.00 and set an "outperform" rating for the company in a research note on Thursday, April 23rd. BTIG Research reiterated a "buy" rating and set a $150.00 price target on shares of ServiceNow in a report on Monday, May 4th. Jefferies Financial Group reissued a "buy" rating and issued a $135.00 price target (down from $175.00) on shares of ServiceNow in a research report on Thursday, April 23rd. Truist Financial dropped their price objective on ServiceNow from $125.00 to $120.00 and set a "buy" rating on the stock in a research note on Thursday, April 23rd. Finally, BNP Paribas Exane raised shares of ServiceNow from a "neutral" rating to an "outperform" rating and set a $140.00 price objective on the stock in a report on Monday, March 16th. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, ServiceNow has an average rating of "Moderate Buy" and a consensus price target of $142.17.

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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