Pinnacle Associates Ltd. Has $2.99 Million Stock Holdings in ServiceNow, Inc. $NOW

Key Points

• Pinnacle Associates Ltd. boosted its ServiceNow stake by 512.7% in the fourth quarter, ending with 19,490 shares valued at about $2.99 million.
• Institutional interest in ServiceNow remains very high, with funds like Vanguard, Jennison, and others sharply increasing holdings; 87.18% of the stock is now owned by institutional investors and hedge funds.
• Analysts remain cautiously positive overall, with ServiceNow carrying a Moderate Buy consensus and an average price target of $144.71, even as some firms have recently cut targets and insiders have sold shares.

Pinnacle Associates Ltd. grew its position in ServiceNow, Inc. (NYSE:NOW - Free Report) by 512.7% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The firm owned 19,490 shares of the information technology services provider's stock after purchasing an additional 16,309 shares during the period. Pinnacle Associates Ltd.'s holdings in ServiceNow were worth $2,986,000 at the end of the most recent reporting period.

Several other hedge funds also recently bought and sold shares of NOW. Vanguard Group Inc. raised its holdings in ServiceNow by 404.5% in the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock worth $15,619,771,000 after purchasing an additional 81,752,460 shares during the period. Jennison Associates LLC raised its holdings in ServiceNow by 280.1% in the fourth quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider's stock worth $1,291,758,000 after purchasing an additional 6,213,762 shares during the period. Nordea Investment Management AB raised its holdings in ServiceNow by 388.7% in the fourth quarter. Nordea Investment Management AB now owns 4,706,164 shares of the information technology services provider's stock worth $720,325,000 after purchasing an additional 3,743,087 shares during the period. Pictet Asset Management Holding SA raised its holdings in ServiceNow by 613.4% in the fourth quarter. Pictet Asset Management Holding SA now owns 3,840,262 shares of the information technology services provider's stock worth $588,326,000 after purchasing an additional 3,301,962 shares during the period. Finally, Swedbank AB raised its holdings in ServiceNow by 326.9% in the fourth quarter. Swedbank AB now owns 3,415,650 shares of the information technology services provider's stock worth $523,243,000 after purchasing an additional 2,615,500 shares during the period. 87.18% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

NOW has been the topic of several analyst reports. Robert W. Baird cut their target price on shares of ServiceNow from $125.00 to $118.00 and set an "outperform" rating on the stock in a report on Thursday, April 23rd. FBN Securities dropped their price objective on shares of ServiceNow from $160.00 to $120.00 in a report on Thursday, April 23rd. Evercore raised their price objective on shares of ServiceNow from $140.00 to $150.00 and gave the stock an "outperform" rating in a report on Tuesday, May 5th. Wall Street Zen lowered shares of ServiceNow from a "buy" rating to a "hold" rating in a report on Saturday, February 28th. Finally, Needham & Company LLC restated a "buy" rating and set a $115.00 price objective on shares of ServiceNow in a report on Tuesday, May 5th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $144.71.

Insiders Place Their Bets

In related news, insider Paul Fipps sold 9,641 shares of the firm's stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $105.93, for a total value of $1,021,271.13. Following the completion of the transaction, the insider owned 11,757 shares of the company's stock, valued at approximately $1,245,419.01. This trade represents a 45.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jacqueline P. Canney sold 8,927 shares of the firm'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 transaction, the insider directly owned 29,531 shares of the company's stock, valued at approximately $2,645,977.60. This trade represents a 23.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 22,415 shares of company stock valued at $2,210,933. 0.34% of the stock is owned by insiders.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow and Experian announced a new multi-year global partnership to embed autonomous AI capabilities into workflows such as employee onboarding and third-party risk management, which could deepen platform adoption and expand use cases. Experian Partners With ServiceNow to Scale Trusted Decisioning to Agentic AI
• Positive Sentiment: ServiceNow also expanded AI and automation partnerships with Accenture and FedEx Dataworks, signaling stronger enterprise demand for its workflow platform and potential conversion of pilot projects into full production deployments. ServiceNow AI Partnerships Aim To Turn Pilot Projects Into Core Workflows
• Positive Sentiment: The company completed a $4 billion multi-tranche debt offering, which should improve financing flexibility even though it increases leverage. ServiceNow Completes $4 Billion Multi-Tranche Debt Offering
• Neutral Sentiment: Commentary from analysts highlights ServiceNow’s expanding customer base, 22% subscription revenue growth, and strong remaining performance obligations visibility, reinforcing expectations for continued top-line growth. Can an Expanding Clientele Boost ServiceNow's Top-Line Growth?
• Negative Sentiment: Some market coverage and options activity suggest the stock has been under pressure recently, reflecting lingering concerns about valuation and post-earnings weakness. See ServiceNow Stock Heading Lower? This Trade Profits From Further Downside.

ServiceNow Trading Up 5.1%

Shares of NYSE:NOW opened at $95.15 on Friday. ServiceNow, Inc. has a 12 month low of $81.24 and a 12 month 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 fifty day simple moving average is $100.52 and its 200 day simple moving average is $129.07. The firm has a market cap of $98.10 billion, a price-to-earnings ratio of 56.71, a PEG ratio of 1.60 and a beta of 0.82.

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

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.

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