Parnassus Investments LLC Acquires 1,666,680 Shares of ServiceNow, Inc. $NOW

Key Points

• Parnassus Investments boosted its ServiceNow stake by 261.1% in the fourth quarter, buying 1,666,680 additional shares and lifting its holdings to 2,304,946 shares worth about $353.1 million.
• ServiceNow has continued to attract major institutional interest, with institutional investors owning 87.18% of the company’s stock despite some smaller firms also making notable purchases.
• Analysts remain generally constructive on the stock: ServiceNow has a consensus “Moderate Buy” rating and an average target price of $141.85, even as some firms trimmed their price targets.

Parnassus Investments LLC increased its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 261.1% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 2,304,946 shares of the information technology services provider's stock after buying an additional 1,666,680 shares during the period. Parnassus Investments LLC owned about 0.22% of ServiceNow worth $353,095,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors also recently bought and sold shares of NOW. IAG Wealth Partners LLC raised its stake in ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after buying an additional 18 shares in the last quarter. Noble Wealth Management PBC raised its stake in ServiceNow by 400.0% in the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock worth $25,000 after buying an additional 128 shares in the last quarter. Millstone Evans Group LLC raised its stake in ServiceNow by 400.0% in the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after buying an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC raised 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. Finally, Blueline Advisors LLC bought a new position in ServiceNow in the fourth quarter worth approximately $25,000. 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 company's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $98.51, for a total value of $103,238.48. Following the sale, the insider directly owned 12,072 shares of the company's stock, valued at approximately $1,189,212.72. This represents a 7.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 company's stock in a transaction on Friday, April 24th. The shares were sold at an average price of $89.60, for a total transaction of $799,859.20. Following the completion of the sale, the insider directly owned 29,531 shares in the company, valued at approximately $2,645,977.60. The trade was a 23.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 28,071 shares of company stock valued at $2,529,956 in the last three months. Company insiders own 0.34% of the company's stock.

ServiceNow Price Performance

NYSE NOW opened at $103.03 on Friday. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84. The stock's fifty day moving average price is $99.84 and its 200 day moving average price is $120.17. ServiceNow, Inc. has a 1 year low of $81.24 and a 1 year high of $211.48. The company has a market cap of $106.23 billion, a price-to-earnings ratio of 61.40, a PEG ratio of 1.75 and a beta of 0.94.

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, meeting the consensus estimate of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The firm had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. During the same period in the prior year, the firm earned $0.81 EPS. The firm's revenue was up 22.1% on a year-over-year basis. As a group, equities research analysts forecast that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. HSBC reduced their price objective on shares of ServiceNow from $226.00 to $171.00 and set a "buy" rating for the company in a research note on Thursday, April 16th. Capital One Financial upped their price target on ServiceNow from $105.00 to $120.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 5th. DA Davidson reiterated a "buy" rating and set a $190.00 price objective on shares of ServiceNow in a report on Tuesday, May 5th. Citic Securities lowered their price objective on ServiceNow from $168.00 to $140.00 and set a "buy" rating for the company in a research report on Thursday, May 21st. Finally, Deutsche Bank Aktiengesellschaft lowered their price objective on ServiceNow from $180.00 to $135.00 and set a "buy" rating for the company in a research report on Thursday, April 16th. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, ServiceNow presently has an average rating of "Moderate Buy" and an average target price of $141.85.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow announced a new partnership with IBM aimed at modernizing legacy IT systems and making enterprise data usable for agentic AI, which supports the company’s long-term AI growth narrative. IBM And ServiceNow Target Enterprise AI Scale While Seeding Future Talent
• Positive Sentiment: ServiceNow also expanded its AI footprint through a partnership with Phenom to launch AI hiring agents, reinforcing demand for its workflow automation and AI tools. Phenom Partners with ServiceNow to Introduce AI Hiring Agents
• Positive Sentiment: Analysts said ServiceNow demand remains resilient despite global uncertainty, citing AI growth, pricing power, and a potential path to much higher revenue over time. ServiceNow Demand Remains Resilient Despite Global Uncertainty: Analyst
• Positive Sentiment: ServiceNow was also highlighted as a possible AI winner by market commentators, suggesting investors still see it as one of the better-positioned software names in the AI trade. The AI Trade Nobody Is Making Right Now -- and Why It Could Be 2026's Best Opportunity
• Neutral Sentiment: ServiceNow is getting attention from traders and media as the stock remains volatile, with some technical commentary suggesting the recent pullback may be driven partly by profit-taking rather than a change in fundamentals. What's Going On With ServiceNow Stock Thursday?
• Negative Sentiment: Multiple reports said ServiceNow disclosed or patched a bug/API vulnerability that may have exposed customer data or allowed unauthorized access, raising cybersecurity and trust concerns. ServiceNow tells customers a bug left some of their data exposed to the internet
• Negative Sentiment: Commentary from Jim Cramer also pointed to ServiceNow’s premium valuation, which can make the stock more vulnerable when sentiment turns cautious. Jim Cramer on ServiceNow: “It’s Expensive, That’s the Problem”
• Negative Sentiment: News about Bay Area job cuts across tech firms added to the cautious tone in the sector, reinforcing worries about a softer enterprise spending backdrop. ServiceNow, Salesforce, other tech firms reveal more Bay Area job cuts

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.