Moors & Cabot Inc. Raises Stock Holdings in ServiceNow, Inc. $NOW

Key Points

• Moors & Cabot Inc. boosted its ServiceNow stake by 387.7% in the fourth quarter, ending with 45,630 shares valued at about $6.99 million.
• ServiceNow reported Q1 earnings of $0.97 per share, matching analyst expectations, while revenue came in at $3.77 billion and rose 22.1% year over year.
• The stock has drawn mixed signals: institutional ownership remains high at 87.18%, but recent insider sales and concerns about rising AI competition are keeping investor attention on the company’s growth outlook.

Moors & Cabot Inc. lifted its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 387.7% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 45,630 shares of the information technology services provider's stock after buying an additional 36,274 shares during the quarter. Moors & Cabot Inc.'s holdings in ServiceNow were worth $6,990,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. IAG Wealth Partners LLC raised its stake 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 acquiring an additional 18 shares in the last quarter. Noble Wealth Management PBC raised its stake in shares of ServiceNow by 400.0% during the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock valued at $25,000 after acquiring an additional 128 shares in the last quarter. Millstone Evans Group LLC raised its stake in shares of ServiceNow by 400.0% during the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock valued at $25,000 after acquiring an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC raised its stake in shares of ServiceNow by 540.0% during 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 acquiring an additional 135 shares in the last quarter. Finally, Lodestone Wealth Management LLC bought a new stake in shares of ServiceNow during the fourth quarter valued at approximately $26,000. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

ServiceNow Stock Up 6.3%

ServiceNow stock opened at $108.58 on Friday. The business has a fifty day moving average of $97.84 and a two-hundred day moving average of $123.73. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13. The firm has a market cap of $111.95 billion, a P/E ratio of 64.71, a P/E/G ratio of 1.69 and a beta of 0.82. ServiceNow, Inc. has a twelve month low of $81.24 and a twelve month high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last posted 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 company had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.ServiceNow's revenue was up 22.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.81 earnings per share. On average, analysts forecast that ServiceNow, Inc. will post 2.35 earnings per share for the current fiscal year.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow extended gains as investors viewed the stock as deeply undervalued versus GuruFocus’s GF Value estimate, reinforcing bullish sentiment around the name. A Look at ServiceNow Inc (NOW) After 6.5% Gain -- GF Value $225.42 vs Price $108.73
• Positive Sentiment: Wipro announced a deeper partnership with ServiceNow to automate enterprise workflows and embed agentic AI capabilities, which could support longer-term platform adoption and AI revenue opportunities. Wipro and ServiceNow deepen AI partnership to automate enterprise workflows
• Positive Sentiment: Analyst commentary highlighted ServiceNow’s Q1 results as a sign of resilience, with revenue growth around 22% and earnings meeting expectations, while institutional buying and elevated analyst targets continue to support the stock. ServiceNow (NOW) Stock Analysis: Evaluating the Investment Opportunity
• Neutral Sentiment: Unusually heavy call-option activity suggests traders are positioning for further upside, but it may also reflect short-term speculation rather than fundamental conviction.
• Neutral Sentiment: Several articles focused on ServiceNow’s presentation at a software and AI conference and on broader automation-software comparisons, which appear more informational than immediately market-moving.
• Negative Sentiment: Some coverage flagged rising AI competition and questioned whether ServiceNow can sustain growth, a reminder that investors are still watching how effectively the company defends its AI and enterprise software positioning. Can ServiceNow Sustain Its Growth Amid Rising AI Competition?

Insiders Place Their Bets

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the business's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director owned 44,930 shares of the company's stock, valued at approximately $3,919,243.90. The trade was a 3.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the sale, the insider directly owned 12,072 shares in the company, valued at approximately $1,189,212.72. This represents a 7.99% decrease in their position. The SEC filing for this sale provides additional information. 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. In the last ninety days, insiders sold 28,071 shares of company stock valued at $2,529,956. Company insiders own 0.34% of the company's stock.

Wall Street Analyst Weigh In

NOW has been the subject of several research analyst reports. Weiss Ratings downgraded shares of ServiceNow from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, April 21st. Oppenheimer reissued an "outperform" rating on shares of ServiceNow in a research report on Tuesday. Citizens Jmp reissued a "market outperform" rating and set a $157.00 target price on shares of ServiceNow in a research report on Tuesday, May 5th. DA Davidson reissued a "buy" rating and set a $190.00 target price on shares of ServiceNow in a research report on Tuesday, May 5th. Finally, FBN Securities lowered their target price on ServiceNow from $160.00 to $120.00 in a report on Thursday, April 23rd. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $141.85.

ServiceNow 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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