Motley Fool Wealth Management LLC Increases Position in ServiceNow, Inc. $NOW

Key Points

• Motley Fool Wealth Management increased its ServiceNow stake by 297.8% in the fourth quarter, and several other institutional investors also raised their holdings. Hedge funds and other institutions now own 87.18% of the company’s shares.
• ServiceNow reported Q1 earnings of $0.97 per share, matching analyst expectations, while revenue of $3.77 billion beat estimates and rose 22.1% year over year. Analysts currently expect the company to earn 2.35 EPS for the full fiscal year.
• Despite generally positive analyst coverage, shares have faced pressure: ServiceNow was trading at $106.80, below its 200-day average of $120.97, and recent news has highlighted both AI-related optimism and short-term selling pressure. The stock has a consensus rating of Moderate Buy with an average target price of $141.85.

Motley Fool Wealth Management LLC boosted its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 297.8% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 79,275 shares of the information technology services provider's stock after acquiring an additional 59,349 shares during the period. Motley Fool Wealth Management LLC's holdings in ServiceNow were worth $12,144,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the business. Motley Fool Asset Management LLC grew its stake in ServiceNow by 546.6% during the 4th quarter. Motley Fool Asset Management LLC now owns 108,285 shares of the information technology services provider's stock valued at $16,588,000 after acquiring an additional 91,539 shares in the last quarter. Axiom Investors LLC DE boosted its holdings in ServiceNow by 155.5% in the 4th quarter. Axiom Investors LLC DE now owns 1,208,445 shares of the information technology services provider's stock valued at $185,122,000 after purchasing an additional 735,466 shares during the last quarter. Outlook Wealth Advisors LLC boosted its holdings in ServiceNow by 386.1% in the 4th quarter. Outlook Wealth Advisors LLC now owns 3,962 shares of the information technology services provider's stock valued at $607,000 after purchasing an additional 3,147 shares during the last quarter. Portfolio Design Labs LLC boosted its holdings in ServiceNow by 437.1% in the 4th quarter. Portfolio Design Labs LLC now owns 8,088 shares of the information technology services provider's stock valued at $1,239,000 after purchasing an additional 6,582 shares during the last quarter. Finally, Cooper Haims Advisors LLC boosted its holdings in ServiceNow by 400.0% in the 4th quarter. Cooper Haims Advisors LLC now owns 1,685 shares of the information technology services provider's stock valued at $258,000 after purchasing an additional 1,348 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, insider Paul Fipps sold 1,048 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were 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 $1,189,212.72. This represents a 7.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 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. Also, insider Jacqueline P. Canney sold 8,927 shares of the stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $89.60, for a total transaction of $799,859.20. Following the sale, the insider owned 29,531 shares in the company, valued at approximately $2,645,977.60. This trade represents a 23.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 28,071 shares of company stock valued at $2,529,956 in the last quarter. Corporate insiders own 0.34% of the company's stock.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Industry commentary from Thoma Bravo’s Orlando Bravo said fears of an AI-driven “SaaSpocalypse” are fading, calling AI an “enormous tailwind” for software companies. "SaaSpocalypse is over," Thoma Bravo founder says
• Positive Sentiment: ServiceNow continues to see ecosystem support, including a new NICE AI-first integration designed to unify customer engagement and enterprise workflows, which reinforces demand for its platform. NICE Launches AI-First ServiceNow Integration to Unify Customer Engagement and Enterprise Workflows
• Neutral Sentiment: Several market-watch articles are comparing NOW with peer ExlService Holdings on valuation, suggesting investors are still debating whether ServiceNow’s recent pullback makes the stock attractive. EXLS vs. NOW: Which Stock Is the Better Value Option?
• Neutral Sentiment: Recent articles also frame the stock as part of a broader risk-off move in software and technology, with the Nasdaq weakening and high-multiple names coming under pressure. Nasdaq Slides as Chip Stocks Reverse Course
• Negative Sentiment: Benzinga reported that ServiceNow shares are sliding as investors turn defensive and reassess the recent rebound in enterprise software, adding to short-term selling pressure. ServiceNow Shares Are Sliding Tuesday: What's Going On?

ServiceNow Price Performance

ServiceNow stock opened at $106.80 on Wednesday. The firm has a market cap of $110.11 billion, a PE ratio of 63.65, a price-to-earnings-growth ratio of 1.89 and a beta of 0.94. ServiceNow, Inc. has a 52-week low of $81.24 and a 52-week high of $211.48. 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 company's 50 day moving average is $99.84 and its two-hundred day moving average is $120.97.

ServiceNow (NYSE:NOW - Get Free Report) last released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.97. The company had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm's quarterly revenue was up 22.1% on a year-over-year basis. During the same period in the prior year, the business earned $0.81 EPS. On average, research analysts expect that ServiceNow, Inc. will post 2.35 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

NOW has been the topic of several recent analyst reports. TD Cowen reiterated a "buy" rating and issued a $140.00 target price on shares of ServiceNow in a report on Thursday, April 23rd. FBN Securities decreased their target price on shares of ServiceNow from $160.00 to $120.00 in a report on Thursday, April 23rd. BMO Capital Markets decreased their target price on shares of ServiceNow from $120.00 to $115.00 and set an "outperform" rating on the stock in a report on Thursday, April 23rd. Stifel Nicolaus decreased their target price on shares of ServiceNow from $135.00 to $120.00 and set a "buy" rating on the stock in a report on Thursday, April 23rd. Finally, Citic Securities decreased their target price on shares of ServiceNow from $168.00 to $140.00 and set a "buy" rating on the stock in a report on Thursday, May 21st. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, ServiceNow has a consensus 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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