Lombard Odier Asset Management Europe Ltd Acquires 51,108 Shares of ServiceNow, Inc. $NOW

Key Points

• Lombard Odier Asset Management Europe Ltd more than doubled its ServiceNow holdings in the first quarter, purchasing 51,108 additional shares for a total of 99,813 shares valued at approximately $10.4 million.
• ServiceNow reported strong second-quarter results, with revenue rising 24% year over year to $3.99 billion and adjusted EPS of $0.90 beating expectations. The company also raised its full-year revenue outlook and highlighted more than $1 billion in AI-related contract value.
• Investor sentiment remains broadly positive: institutional investors own 87.18% of the stock, and analysts give ServiceNow a consensus “Moderate Buy” rating with an average price target of $143.39. However, the company may cut up to 1,000 jobs following acquisitions, while insiders have recently sold shares.

Lombard Odier Asset Management Europe Ltd lifted its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 104.9% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 99,813 shares of the information technology services provider's stock after purchasing an additional 51,108 shares during the quarter. Lombard Odier Asset Management Europe Ltd's holdings in ServiceNow were worth $10,435,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Florida Financial Advisors LLC grew its position in ServiceNow by 5.4% during the second quarter. Florida Financial Advisors LLC now owns 273 shares of the information technology services provider's stock worth $280,000 after buying an additional 14 shares in the last quarter. Clark Capital Management Group Inc. raised its holdings in ServiceNow by 3.6% in the 3rd quarter. Clark Capital Management Group Inc. now owns 514 shares of the information technology services provider's stock valued at $473,000 after acquiring an additional 18 shares in the last quarter. American Trust raised its holdings in ServiceNow by 1.8% in the 3rd quarter. American Trust now owns 1,029 shares of the information technology services provider's stock valued at $947,000 after acquiring an additional 18 shares in the last quarter. Morse Asset Management Inc lifted its position in shares of ServiceNow by 0.5% during the 2nd quarter. Morse Asset Management Inc now owns 3,488 shares of the information technology services provider's stock valued at $3,586,000 after acquiring an additional 19 shares during the period. Finally, CYBER HORNET ETFs LLC lifted its position in shares of ServiceNow by 3.7% during the 3rd quarter. CYBER HORNET ETFs LLC now owns 567 shares of the information technology services provider's stock valued at $522,000 after acquiring an additional 20 shares during the period. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow raised its full-year revenue outlook, reinforcing confidence in continued demand for its workflow-automation platform and supporting the recent improvement in the stock. Why Shares of ServiceNow Stock Were Rising This Week
• Positive Sentiment: Second-quarter revenue rose approximately 24% year over year to about $4 billion, while adjusted earnings exceeded expectations. Management also highlighted more than $1 billion in AI-related contract value, suggesting AI agents are adding consumption-based revenue rather than simply reducing software-seat demand. ServiceNow Stock Opinions on Q2 Earnings Results
• Positive Sentiment: Analyst commentary remains constructive, with reported price targets materially above the recent trading level. One bullish analysis raised its fair-value estimate to $160, citing accelerating user retention, strong organic growth, pricing power in AI products and a long-term target of $30 billion to $32 billion in subscription revenue. ServiceNow User Retention Is Accelerating
• Neutral Sentiment: Dynamic Lifecycle Innovations launched an IT asset-disposition application on ServiceNow, adding another example of partners expanding the platform’s use cases. The announcement is strategically supportive but is unlikely to materially change near-term revenue expectations. Dynamic Lifecycle Innovations launches new ServiceNow app
• Negative Sentiment: ServiceNow could eliminate up to 1,000 positions this year as part of a post-acquisition “rightsizing” effort. The cuts may improve efficiency and margins, but reports of continuing layoffs create execution, morale and integration concerns for investors. Exclusive: ServiceNow to cut up to 1K jobs

Wall Street Analyst Weigh In

A number of research analysts recently commented on NOW shares. Robert W. Baird raised their price target on ServiceNow from $118.00 to $125.00 and gave the stock an "outperform" rating in a research report on Thursday, July 23rd. Capital One Financial upped their price objective on shares of ServiceNow from $105.00 to $120.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 5th. Cantor Fitzgerald increased their price objective on shares of ServiceNow from $122.00 to $141.00 and gave the stock an "overweight" rating in a research note on Monday, July 20th. Citigroup reissued a "market outperform" rating on shares of ServiceNow in a report on Thursday, July 23rd. Finally, Needham & Company LLC restated a "buy" rating and issued a $115.00 target price on shares of ServiceNow in a research report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $143.39.

ServiceNow Price Performance

ServiceNow stock opened at $111.57 on Monday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. ServiceNow, Inc. has a 52 week low of $81.24 and a 52 week high of $196.40. The stock has a market capitalization of $115.36 billion, a P/E ratio of 69.73, a price-to-earnings-growth ratio of 1.96 and a beta of 0.94. The stock has a fifty day moving average of $105.64 and a 200-day moving average of $106.18.

ServiceNow (NYSE:NOW - Get Free Report) last released its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The firm had revenue of $3.99 billion for the quarter, compared to analysts' expectations of $3.93 billion. During the same quarter in the previous year, the business posted $0.81 earnings per share. The business's revenue for the quarter was up 24.0% on a year-over-year basis. On average, sell-side analysts expect that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Insider Transactions at ServiceNow

In related news, Director Anita M. Sands sold 16,445 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the transaction, the director directly owned 30,090 shares in the company, valued at $2,712,312.60. This represents a 35.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total transaction of $130,845.00. Following the transaction, the director owned 44,930 shares of the company's stock, valued at approximately $3,919,243.90. This represents a 3.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 19,144 shares of company stock valued at $1,730,097. 0.34% of the stock is currently owned by insiders.

ServiceNow Company Profile

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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