Parnassus Investments LLC Makes New $519.81 Million Investment in ServiceNow, Inc. $NOW

Key Points

• Parnassus Investments LLC made a significant investment of approximately $519.81 million in ServiceNow, acquiring 652,908 shares during the first quarter.
• ServiceNow's stock has received positive ratings from analysts, with target prices increasing significantly, one reaching $1,200.00, indicating strong optimism for its future performance.
• In its latest quarterly earnings report, ServiceNow reported $4.09 EPS, exceeding expectations and achieving a 22.4% year-over-year revenue growth.

Parnassus Investments LLC bought a new position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 652,908 shares of the information technology services provider's stock, valued at approximately $519,806,000. Parnassus Investments LLC owned about 0.32% of ServiceNow at the end of the most recent reporting period.

Other hedge funds have also recently bought and sold shares of the company. Haverford Trust Co lifted its stake in shares of ServiceNow by 0.9% in the first quarter. Haverford Trust Co now owns 1,176 shares of the information technology services provider's stock valued at $936,000 after buying an additional 10 shares during the period. Edgemoor Investment Advisors Inc. lifted its stake in shares of ServiceNow by 2.5% in the first quarter. Edgemoor Investment Advisors Inc. now owns 459 shares of the information technology services provider's stock valued at $366,000 after buying an additional 11 shares during the period. Integrated Investment Consultants LLC lifted its stake in shares of ServiceNow by 2.5% in the first quarter. Integrated Investment Consultants LLC now owns 450 shares of the information technology services provider's stock valued at $358,000 after buying an additional 11 shares during the period. one8zero8 LLC lifted its stake in shares of ServiceNow by 3.2% in the first quarter. one8zero8 LLC now owns 356 shares of the information technology services provider's stock valued at $283,000 after buying an additional 11 shares during the period. Finally, Capital Investment Advisory Services LLC lifted its stake in shares of ServiceNow by 2.1% in the first quarter. Capital Investment Advisory Services LLC now owns 577 shares of the information technology services provider's stock valued at $459,000 after buying an additional 12 shares during the period. 87.18% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. Stifel Nicolaus increased their target price on shares of ServiceNow from $975.00 to $1,050.00 and gave the company a "buy" rating in a research note on Tuesday, May 6th. Royal Bank Of Canada increased their target price on shares of ServiceNow from $1,060.00 to $1,100.00 and gave the company an "outperform" rating in a research note on Tuesday, May 6th. Piper Sandler increased their target price on shares of ServiceNow from $1,120.00 to $1,150.00 and gave the company an "overweight" rating in a research note on Thursday, July 24th. Oppenheimer reiterated an "outperform" rating and issued a $1,150.00 target price (up previously from $1,100.00) on shares of ServiceNow in a research note on Thursday, July 24th. Finally, Truist Financial upgraded shares of ServiceNow from a "hold" rating to a "buy" rating and increased their target price for the company from $950.00 to $1,200.00 in a research note on Thursday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $1,115.20.

ServiceNow Stock Performance

NYSE:NOW opened at $928.80 on Friday. ServiceNow, Inc. has a 12-month low of $678.66 and a 12-month high of $1,198.09. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $193.19 billion, a PE ratio of 116.98, a price-to-earnings-growth ratio of 4.01 and a beta of 0.93. The firm has a 50-day moving average price of $946.91 and a 200 day moving average price of $926.16.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings results on Wednesday, July 23rd. The information technology services provider reported $4.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.57 by $0.52. ServiceNow had a net margin of 13.78% and a return on equity of 18.04%. The firm had revenue of $3.22 billion during the quarter, compared to analyst estimates of $3.12 billion. During the same quarter in the prior year, the business posted $3.13 earnings per share. The company's quarterly revenue was up 22.4% compared to the same quarter last year. Research analysts anticipate that ServiceNow, Inc. will post 8.93 earnings per share for the current fiscal year.

Insider Activity at ServiceNow

In other news, CFO Gina Mastantuono sold 1,762 shares of the firm's stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $866.45, for a total transaction of $1,526,684.90. Following the completion of the sale, the chief financial officer owned 12,228 shares of the company's stock, valued at approximately $10,594,950.60. This trade represents a 12.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO William R. Mcdermott sold 1,585 shares of the firm's stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $900.00, for a total transaction of $1,426,500.00. Following the sale, the chief executive officer directly owned 12,439 shares of the company's stock, valued at approximately $11,195,100. The trade was a 11.30% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 12,302 shares of company stock valued at $10,956,796. Insiders own 0.38% of the company's stock.

ServiceNow Company Profile

ServiceNow, Inc provides end to-end intelligent workflow automation platform solutions for digital businesses in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company operates the Now platform for end-to-end digital transformation, artificial intelligence, machine learning, robotic process automation, process mining, performance analytics, and collaboration and development tools.

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