Moore Capital Management LP Buys Shares of 152,268 ServiceNow, Inc. $NOW

Key Points

• Moore Capital Management initiated a ServiceNow position by purchasing 152,268 shares worth approximately $15.1 million in the second quarter. Other hedge funds also increased their holdings, with institutional investors collectively owning 87.18% of the company.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $144.24; several firms recently reaffirmed Buy or Outperform ratings and raised targets.
• ServiceNow reported quarterly revenue of $3.99 billion, up 24% year over year, and beat EPS estimates. However, the stock trades at a high valuation, while newly disclosed maximum-severity security vulnerabilities and potential profit-taking present risks.

Moore Capital Management LP purchased a new position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 152,268 shares of the information technology services provider's stock, valued at approximately $15,117,000.

Several other hedge funds have also made changes to their positions in the business. Sigma Planning Corp boosted its stake in shares of ServiceNow by 53.1% in the second quarter. Sigma Planning Corp now owns 28,720 shares of the information technology services provider's stock valued at $2,851,000 after purchasing an additional 9,955 shares during the period. GTS Securities LLC increased its stake in ServiceNow by 90.2% during the 2nd quarter. GTS Securities LLC now owns 45,553 shares of the information technology services provider's stock worth $4,523,000 after buying an additional 21,607 shares during the period. Alyeska Investment Group L.P. purchased a new stake in ServiceNow during the 2nd quarter worth approximately $141,966,000. Jasper Ridge Partners L.P. lifted its holdings in ServiceNow by 201.5% during the 2nd quarter. Jasper Ridge Partners L.P. now owns 13,041 shares of the information technology services provider's stock worth $1,295,000 after buying an additional 8,716 shares in the last quarter. Finally, Flputnam Investment Management Co. lifted its holdings in ServiceNow by 1,748.5% during the 2nd quarter. Flputnam Investment Management Co. now owns 99,856 shares of the information technology services provider's stock worth $9,914,000 after buying an additional 94,454 shares in the last quarter. Institutional investors and hedge funds own 87.18% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have commented on NOW. Citigroup restated a "market outperform" rating on shares of ServiceNow in a research note on Thursday, July 23rd. Benchmark reiterated a "buy" rating on shares of ServiceNow in a research note on Friday, July 17th. Bank of America lifted their target price on ServiceNow from $130.00 to $150.00 and gave the company a "buy" rating in a report on Wednesday, August 19th. Evercore reissued an "outperform" rating and set a $160.00 target price on shares of ServiceNow in a research note on Thursday, July 23rd. Finally, Barclays restated an "overweight" rating and set a $134.00 price target (up from $132.00) on shares of ServiceNow in a report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $144.24.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s recent rally was helped by Salesforce’s strong quarterly results and upbeat outlook, which eased concerns about a “SaaS-pocalypse.” Investors are increasingly viewing AI as an enhancement to existing enterprise workflows rather than a threat to core software platforms. Why ServiceNow Rallied Today
• Positive Sentiment: Analyst and market commentary highlights ServiceNow’s agentic-AI momentum, including more than $1 billion in AI annual contract value, broader enterprise adoption and potential new monetization opportunities. The company’s AI Control Tower and expanding customer spending are viewed as additional growth drivers. Agentic AI Adoption Boosts NOW's Growth Prospects
• Positive Sentiment: Wall Street remains broadly constructive, with ServiceNow receiving Buy or Moderate Buy consensus ratings. The stock has also approached technical buy points, while some analysts have issued targets as high as $150 or substantially higher. Is It Worth Investing in ServiceNow Based on Wall Street's Bullish Views?
• Neutral Sentiment: ServiceNow has risen about 70% from its yearly low and remains below its prior peak, creating debate over whether the move represents a new buying opportunity or a temporary rebound. Analysts’ median price target of approximately $134 is below the current trading level, limiting near-term upside based on that measure. Is It a Golden Opportunity to Buy ServiceNow Stock?
• Negative Sentiment: ServiceNow warned of three maximum-severity vulnerabilities that could allow unauthenticated attackers to execute code or access SQL systems. Although patches and mitigations may limit the financial impact, the disclosures create reputational, customer-retention and execution risks. Three CVSS 10.0 ServiceNow Flaws
• Negative Sentiment: At an elevated earnings multiple, the stock is vulnerable to profit-taking if AI growth slows. Jim Cramer recommended selling half a position and retaining the remainder, underscoring the sharp rally and the possibility that some optimism is already reflected in the shares. Jim Cramer’s ServiceNow Advice

ServiceNow Stock Up 0.0%

ServiceNow stock opened at $144.77 on Monday. The company has a market capitalization of $149.69 billion, a P/E ratio of 90.48, a PEG ratio of 2.55 and a beta of 0.94. 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 fifty-two week low of $81.24 and a fifty-two week high of $194.73. The stock has a 50-day simple moving average of $112.33 and a 200-day simple moving average of $106.61.

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

Insider Buying and Selling at ServiceNow

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $125.60, for a total transaction of $188,400.00. Following the transaction, the director directly owned 46,690 shares in the company, valued at approximately $5,864,264. This trade represents a 3.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.34% of the company's stock.

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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