Morningstar Investment Management LLC Purchases 29,144 Shares of ServiceNow, Inc. $NOW

Key Points

• Morningstar Investment Management increased its stake in ServiceNow by 182.4% in the first quarter, buying 29,144 additional shares to bring its total holding to 45,119 shares worth about $4.7 million.
• ServiceNow recently reported better-than-expected quarterly results, with earnings of $0.90 per share versus $0.86 expected and revenue of $3.99 billion, up 24% from a year earlier.
• Analysts remain generally bullish on the stock, with a Moderate Buy consensus and an average price target of $143.39, even as some insiders and institutions have made mixed moves in the shares.

Morningstar Investment Management LLC raised its position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 182.4% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 45,119 shares of the information technology services provider's stock after purchasing an additional 29,144 shares during the period. Morningstar Investment Management LLC's holdings in ServiceNow were worth $4,717,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in the company. Wealth Watch Advisors INC bought a new position in shares of ServiceNow during the 3rd quarter valued at about $29,000. Kelleher Financial Advisors purchased a new position in shares of ServiceNow during the 3rd quarter valued at about $50,000. Pin Oak Investment Advisors Inc. lifted its position in ServiceNow by 20.7% in the 3rd quarter. Pin Oak Investment Advisors Inc. now owns 134 shares of the information technology services provider's stock worth $123,000 after buying an additional 23 shares during the last quarter. Jupiter Wealth Management LLC bought a new stake in ServiceNow in the 2nd quarter worth approximately $154,000. Finally, CBIZ Investment Advisory Services LLC boosted its stake in ServiceNow by 540.0% in the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock worth $25,000 after buying an additional 135 shares in the last quarter. Institutional investors own 87.18% of the company's stock.

ServiceNow Price Performance

Shares of ServiceNow stock opened at $98.77 on Friday. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.84. The business's 50 day simple moving average is $104.77 and its two-hundred day simple moving average is $107.70. The stock has a market capitalization of $101.83 billion, a P/E ratio of 61.73, a price-to-earnings-growth ratio of 1.54 and a beta of 0.96. ServiceNow, Inc. has a one year low of $81.24 and a one year high of $201.15.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.04. The firm had revenue of $3.99 billion during 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 business's revenue was up 24.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.81 earnings per share. Analysts forecast that ServiceNow, Inc. will post 2.33 EPS for the current year.

Analysts Set New Price Targets

NOW has been the topic of a number of recent research reports. BMO Capital Markets increased their price target on shares of ServiceNow from $115.00 to $118.00 and gave the company an "outperform" rating in a research report on Thursday. Wolfe Research set a $125.00 price objective on shares of ServiceNow in a report on Thursday, April 23rd. Jefferies Financial Group reaffirmed a "buy" rating and issued a $140.00 price objective (up from $135.00) on shares of ServiceNow in a research note on Thursday. FBN Securities reduced their target price on shares of ServiceNow from $160.00 to $120.00 in a report on Thursday, April 23rd. Finally, Piper Sandler reiterated an "overweight" rating and issued a $140.00 target price on shares of ServiceNow in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $143.39.

Insider Buying and Selling

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the company's stock in a transaction 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 completion of the sale, the director directly owned 44,930 shares in the company, valued at $3,919,243.90. This represents a 3.23% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anita M. Sands sold 16,445 shares of the stock in a transaction 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 sale, the director directly owned 30,090 shares of the company's stock, valued at $2,712,312.60. The trade was a 35.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 19,144 shares of company stock valued at $1,730,097 over the last three months. 0.34% of the stock is owned by company insiders.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s Q2 results showed robust growth, with revenue up about 24% year over year and subscription revenue accelerating, reinforcing that demand for its platform remains strong. Article Title
• Positive Sentiment: Management raised guidance and highlighted AI momentum, including AI contract value topping $1 billion and expanding enterprise adoption, which supports the case for continued growth. Article Title
• Positive Sentiment: Several analysts raised or reaffirmed bullish ratings and price targets after earnings, reflecting renewed confidence in ServiceNow’s outlook and valuation upside. Article Title
• Positive Sentiment: New partnerships and channel expansions, including deals with Experian, TeamViewer, and Exclusive Networks, suggest broader adoption of ServiceNow’s AI and cybersecurity offerings. Article Title
• Neutral Sentiment: Investors are also watching mixed signals from insider and institutional trading, with some large funds trimming positions even as others add shares; this appears more like portfolio rebalancing than a clear fundamental warning. Article Title
• Negative Sentiment: Despite the earnings beat, some commentary says the stock’s rally may be vulnerable if AI disruption fears return, especially around usage-based pricing and long-term software demand. Article Title

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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