Leuthold Group LLC Buys New Holdings in ServiceNow, Inc. $NOW

Key Points

• Leuthold Group initiated a ServiceNow position, buying 71,019 shares worth approximately $9.5 million in the third quarter. Institutional investors collectively own 87.18% of the stock.
• ServiceNow reported quarterly revenue of $4.11 billion, up 20.5% year over year and above estimates, but earnings per share of $1.00 narrowly missed the $1.02 consensus.
• Analysts maintain a “Moderate Buy” consensus rating, with an average price target of $154.50. Recent targets range from $160 to $185 among the firms cited.

Leuthold Group LLC bought a new position in ServiceNow, Inc. (NYSE:NOW - Free Report) in the third quarter, according to the company in its most recent disclosure with the SEC. The fund bought 71,019 shares of the information technology services provider's stock, valued at approximately $9,517,000.

A number of other hedge funds have also added to or reduced their stakes in NOW. BlackRock Inc. bought a new stake in shares of ServiceNow in the second quarter worth $9,536,615,000. State Street Corp lifted its holdings in ServiceNow by 2.0% in the second quarter. State Street Corp now owns 49,038,218 shares of the information technology services provider's stock valued at $4,868,514,000 after acquiring an additional 979,726 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in ServiceNow by 16.6% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 16,638,071 shares of the information technology services provider's stock valued at $1,651,828,000 after acquiring an additional 2,362,606 shares during the period. Amundi boosted its stake in ServiceNow by 60.9% during the first quarter. Amundi now owns 11,479,098 shares of the information technology services provider's stock valued at $1,200,140,000 after buying an additional 4,346,722 shares during the last quarter. Finally, Bank of New York Mellon Corp boosted its stake in ServiceNow by 6.5% during the first quarter. Bank of New York Mellon Corp now owns 8,526,931 shares of the information technology services provider's stock valued at $891,491,000 after buying an additional 518,263 shares during the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

ServiceNow Trading Up 0.9%

Shares of NYSE NOW opened at $102.86 on Tuesday. 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 business's 50 day moving average price is $135.47 and its 200-day moving average price is $114.69. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $175.00. The company has a market cap of $106.77 billion, a price-to-earnings ratio of 74.00, a PEG ratio of 2.13 and a beta of 1.00.

ServiceNow (NYSE:NOW - Get Free Report) last released its earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share for the quarter, missing the consensus estimate of $1.02 by ($0.02). The business had revenue of $4.11 billion for the quarter, compared to the consensus estimate of $4.09 billion. ServiceNow had a return on equity of 15.17% and a net margin of 9.36%. The firm's revenue for the quarter was up 20.5% compared to the same quarter last year. During the same quarter last year, the business posted $4.82 earnings per share. On average, sell-side analysts expect that ServiceNow, Inc. will post 2.12 earnings per share for the current year.

Analysts Set New Price Targets

NOW has been the topic of a number of research reports. Morgan Stanley reaffirmed an "overweight" rating and issued a $160.00 price objective on shares of ServiceNow in a research note on Thursday, October 29th. Wells Fargo & Company lowered their target price on ServiceNow from $190.00 to $175.00 and set an "overweight" rating for the company in a research report on Thursday, October 29th. Oppenheimer reissued an "outperform" rating and issued a $165.00 target price on shares of ServiceNow in a report on Thursday, October 29th. Robert W. Baird set a $185.00 price target on shares of ServiceNow in a research report on Thursday, October 29th. Finally, JPMorgan Chase & Co. upped their price target on shares of ServiceNow from $150.00 to $160.00 and gave the company an "overweight" rating in a research note on Thursday, October 29th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $154.50.

Insider Transactions at ServiceNow

In other ServiceNow news, Director Paul Chamberlain sold 2,700 shares of the business's stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the completion of the sale, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Paul Fipps sold 2,034 shares of the company's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the transaction, the insider owned 18,305 shares in the company, valued at $2,706,760.35. This represents a 10.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 14,081 shares of company stock worth $1,937,904. Insiders own 0.34% of the company's stock.

ServiceNow 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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