Northeast Investment Management Trims Stake in ServiceNow, Inc. $NOW

Key Points

• Northeast Investment Management sharply reduced its ServiceNow stake in the first quarter, cutting holdings by 75.4% and selling 86,556 shares. After the sale, it owned 28,205 shares worth about $2.95 million.
• Insider selling continued at ServiceNow, with director Anita M. Sands and insider Jacqueline P. Canney both trimming their positions in recent transactions. Over the last three months, insiders sold 28,071 shares worth about $2.53 million.
• Analysts remain broadly positive but have lowered targets amid recent volatility in the stock. ServiceNow’s average rating is still “Moderate Buy,” though multiple firms cut price targets as the shares traded well below both their 50-day and 200-day averages.

Northeast Investment Management lessened its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 75.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 28,205 shares of the information technology services provider's stock after selling 86,556 shares during the period. Northeast Investment Management's holdings in ServiceNow were worth $2,949,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also modified their holdings of the business. Meridian Wealth Advisors LLC increased its holdings in ServiceNow by 2.2% in the 3rd quarter. Meridian Wealth Advisors LLC now owns 552 shares of the information technology services provider's stock valued at $508,000 after purchasing an additional 12 shares during the last quarter. Catalyst Financial Partners LLC raised its position in ServiceNow by 1.0% in the third quarter. Catalyst Financial Partners LLC now owns 1,270 shares of the information technology services provider's stock valued at $1,169,000 after purchasing an additional 13 shares during the period. JT Stratford LLC lifted its stake in ServiceNow by 3.5% during the third quarter. JT Stratford LLC now owns 385 shares of the information technology services provider's stock worth $354,000 after purchasing an additional 13 shares in the last quarter. Florida Financial Advisors LLC boosted its position in shares of 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 during the period. Finally, Cozad Asset Management Inc. grew its stake in shares of ServiceNow by 6.7% in the third quarter. Cozad Asset Management Inc. now owns 223 shares of the information technology services provider's stock valued at $205,000 after buying an additional 14 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at ServiceNow

In related news, Director Anita M. Sands sold 16,445 shares of the company's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the sale, the director directly owned 30,090 shares of the company's stock, valued at $2,712,312.60. This represents a 35.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jacqueline P. Canney sold 8,927 shares of ServiceNow stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the transaction, the insider directly owned 29,531 shares in the company, valued at approximately $2,645,977.60. This trade represents a 23.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 28,071 shares of company stock worth $2,529,956. Insiders own 0.34% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on NOW shares. Robert W. Baird decreased their target price on ServiceNow from $125.00 to $118.00 and set an "outperform" rating on the stock in a research note on Thursday, April 23rd. TD Cowen reissued a "buy" rating and set a $140.00 price target on shares of ServiceNow in a research report on Thursday, April 23rd. Canaccord Genuity Group dropped their price objective on shares of ServiceNow from $200.00 to $145.00 and set a "buy" rating for the company in a report on Thursday, April 23rd. Piper Sandler cut their target price on shares of ServiceNow from $200.00 to $140.00 and set an "overweight" rating on the stock in a research note on Thursday, April 23rd. Finally, Truist Financial decreased their price target on shares of ServiceNow from $125.00 to $120.00 and set a "buy" rating for the company in a research report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $142.17.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow was highlighted in a bullish article arguing that the company is executing well operationally and that its stock may be trading at a discount, which could support a re-rating if investors regain confidence. ServiceNow: An Excellent Business Trading at a Discount
• Positive Sentiment: Several articles pointed to expanding AI-related partnerships and governance use cases, including integrations with HCLTech, Google Cloud, and Microsoft-adjacent enterprise workflows, reinforcing ServiceNow’s position in enterprise AI automation. HCLTech Deepens Google Cloud–ServiceNow Alliance to Scale Enterprise AI Agents
• Positive Sentiment: New partnerships around AI governance and public sector modernization suggest ServiceNow is still broadening its addressable market and deepening product relevance in regulated enterprise environments. ServiceNow (NOW) Expands AI Governance And Public Sector Reach With New Partnerships
• Neutral Sentiment: A comparison piece on Salesforce and ServiceNow noted that ServiceNow continues to post steadier revenue gains, but the article was more informational than a direct catalyst for the stock. Salesforce vs. ServiceNow: What Do Their Revenue Trends Tell Investors?
• Negative Sentiment: Recent market coverage noted that ServiceNow has been slipping alongside a broader tech pullback, and some commentary specifically linked the weakness to investor concerns about AI-related expectations and valuation. ServiceNow (NOW) Dips More Than Broader Market: What You Should Know
• Negative Sentiment: The stock has also been described as falling despite strong earnings, indicating that investors may be focusing more on macro pressure and sentiment than on the company’s fundamentals. AI Concerns Hurt ServiceNow (NOW) Despite Strong Earnings

ServiceNow Price Performance

NOW stock opened at $89.59 on Friday. The business has a 50 day moving average price of $100.01 and a 200 day moving average price of $115.39. 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 stock has a market cap of $92.37 billion, a price-to-earnings ratio of 53.39, a PEG ratio of 1.56 and a beta of 0.94. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting the consensus estimate 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 revenue was up 22.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.81 earnings per share. Equities research analysts anticipate that ServiceNow, Inc. will post 2.34 earnings per share for the current fiscal year.

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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