OVERSEA CHINESE BANKING Corp Ltd Makes New Investment in ServiceNow, Inc. $NOW

Key Points

• Oversea-Chinese Banking Corp. acquired 41,445 ServiceNow shares in the second quarter, valued at approximately $4.1 million. Institutional investors collectively own 87.18% of the company, with major firms including BlackRock, Vanguard and State Street increasing or initiating positions.
• ServiceNow reported quarterly EPS of $0.90, beating estimates of $0.86, while revenue rose 24% year over year to $3.99 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $144.24.
• AI opportunity and valuation risks remain central: analysts view ServiceNow as well positioned to monetize enterprise AI, but competition, elevated valuation and recent insider selling could weigh on the stock if growth or AI adoption disappoints.

OVERSEA CHINESE BANKING Corp Ltd acquired a new position in ServiceNow, Inc. (NYSE:NOW - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 41,445 shares of the information technology services provider's stock, valued at approximately $4,115,000.

Several other hedge funds also recently modified their holdings of NOW. BlackRock Inc. purchased a new stake in ServiceNow in the 2nd quarter valued at $9,536,615,000. Vanguard Group Inc. lifted its stake in ServiceNow by 404.5% during the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock valued at $15,619,771,000 after acquiring an additional 81,752,460 shares in the last quarter. State Street Corp boosted its holdings in ServiceNow by 406.6% during the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock worth $7,337,280,000 after acquiring an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in ServiceNow by 371.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock worth $4,962,692,000 after acquiring an additional 25,517,218 shares during the last quarter. Finally, Geode Capital Management LLC grew its stake in shares of ServiceNow by 404.8% in the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock worth $3,591,425,000 after acquiring an additional 18,854,775 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

ServiceNow Price Performance

ServiceNow stock opened at $129.73 on Friday. The business's 50 day simple moving average is $108.36 and its 200 day simple moving average is $105.58. ServiceNow, Inc. has a 12 month low of $81.24 and a 12 month high of $194.73. The company has a market cap of $134.14 billion, a price-to-earnings ratio of 81.08, a PEG ratio of 2.24 and a beta of 0.94. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43.

ServiceNow (NYSE:NOW - Get Free Report) last released its 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 business 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 for the quarter was up 24.0% on a year-over-year basis. During the same period last year, the business posted $0.81 earnings per share. Sell-side analysts forecast that ServiceNow, Inc. will post 2.24 EPS for the current year.

Analyst Ratings Changes

Several brokerages have recently commented on NOW. Raymond James Financial lowered their target price on shares of ServiceNow from $160.00 to $130.00 and set an "outperform" rating for the company in a report on Thursday, April 23rd. Truist Financial boosted their price target on shares of ServiceNow from $120.00 to $130.00 and gave the stock a "buy" rating in a report on Thursday, July 9th. Piper Sandler reaffirmed an "overweight" rating and issued a $140.00 price objective on shares of ServiceNow in a research report on Thursday, July 23rd. TD Cowen reiterated a "buy" rating and issued a $140.00 price objective on shares of ServiceNow in a research note on Monday. Finally, Robert W. Baird lifted their target price on shares of ServiceNow from $118.00 to $125.00 and gave the stock an "outperform" rating in a research report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, ServiceNow currently has a consensus rating of "Moderate Buy" and a consensus price target of $144.24.

Insider Buying and Selling at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $125.60, for a total value of $188,400.00. Following the completion of the sale, the director owned 46,690 shares of the company's stock, valued at approximately $5,864,264. This trade represents a 3.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.34% of the company's stock.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America raised its price target to $150 from $130 and maintained a Buy rating. The firm said ServiceNow is among the software companies best positioned to monetize AI, helping support a broader software-sector rally. ServiceNow, Adobe, Workday stocks get BofA PT boost
• Positive Sentiment: ServiceNow expanded its multi-year partnership with Tech Mahindra to help enterprises move AI projects from pilot programs into production-scale deployments. The agreement could increase adoption of ServiceNow’s AI and automation tools and reinforce its positioning as an enterprise “AI control tower.” Tech Mahindra and ServiceNow Expand Partnership
• Positive Sentiment: Several market commentaries described NOW as an AI beneficiary, citing its recurring-revenue model, enterprise workflow position, and potential for continued earnings growth. Some analysts see further upside if ServiceNow delivers a strong third quarter. ServiceNow: A Clear AI Winner
• Neutral Sentiment: Television commentators included ServiceNow among their “final trades,” while broader coverage characterized the recent move as part of a rebound in beaten-down software stocks as fears of AI-driven disruption ease. CNBC Final Trades
• Negative Sentiment: Competitive and valuation risks remain. A Forbes article highlighted an AI startup, Serval, that aims to challenge ServiceNow in enterprise automation, while the stock’s elevated valuation leaves it sensitive to slower growth or disappointing AI monetization. Serval Wants To Replace ServiceNow
• Negative Sentiment: Separate coverage reported trading pressure following insider selling, which may raise short-term concerns about executive confidence, although TD Cowen reiterated its Buy rating. ServiceNow Trading Down Following Insider Selling

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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