Prescott Group Capital Management L.L.C. Increases Stock Position in ServiceNow, Inc. $NOW

Key Points

• Prescott Group Capital Management boosted its ServiceNow stake by 400% in the fourth quarter, and several other hedge funds also sharply increased their holdings. Institutional investors now own 87.18% of ServiceNow shares.
• Wall Street sentiment has turned more positive on ServiceNow amid its potential role in agentic AI; Bank of America restarted coverage with a Buy rating and a $130 target. Analysts say the stock may be benefiting from renewed interest in software names and a more attractive valuation after a sharp decline.
• ServiceNow reported quarterly results that met EPS estimates and slightly beat revenue expectations, with revenue up 22.1% year over year. Even so, insiders have been selling shares, and the stock still trades well below its 52-week high.

Prescott Group Capital Management L.L.C. lifted its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 400.0% in the 4th quarter, according to its most recent filing with the SEC. The firm owned 20,340 shares of the information technology services provider's stock after purchasing an additional 16,272 shares during the period. Prescott Group Capital Management L.L.C.'s holdings in ServiceNow were worth $3,116,000 at the end of the most recent quarter.

Other hedge funds have also recently modified their holdings of the company. Cohen Klingenstein LLC lifted its holdings in ServiceNow by 400.0% in the 4th quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider's stock valued at $1,532,000 after purchasing an additional 8,000 shares in the last quarter. World Investment Advisors lifted its holdings in ServiceNow by 411.7% in the 4th quarter. World Investment Advisors now owns 47,955 shares of the information technology services provider's stock valued at $7,218,000 after purchasing an additional 38,583 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its holdings in ServiceNow by 385.9% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider's stock valued at $398,202,000 after purchasing an additional 2,064,440 shares in the last quarter. Torray Investment Partners LLC lifted its holdings in ServiceNow by 390.5% in the 4th quarter. Torray Investment Partners LLC now owns 40,629 shares of the information technology services provider's stock valued at $6,224,000 after purchasing an additional 32,345 shares in the last quarter. Finally, Jennison Associates LLC lifted its holdings in ServiceNow by 280.1% in the 4th quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider's stock valued at $1,291,758,000 after purchasing an additional 6,213,762 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America restarted coverage on ServiceNow with a Buy rating and a $130 target, calling it an AI winner in the emerging agentic AI era. BofA Reinstates Coverage of ServiceNow, Salesforce. It Says 1 Is an AI Beneficiary.
• Positive Sentiment: Several articles said Wall Street is warming to ServiceNow because its workflow software could serve as a control layer for AI agents, easing fears that AI will replace its business. Wall Street Is Warming Up to ServiceNow Stock. That’s Because It’s Now a Bet on Agentic AI.
• Positive Sentiment: Analysts and commentators highlighted that the recent selloff may have been overdone, with ServiceNow’s valuation looking more attractive after a sharp yearlong decline. Assessing ServiceNow (NOW) Valuation After A Year Of Sharp Share Price Declines
• Positive Sentiment: Media and analyst pieces also framed the stock’s rebound as part of a broader rotation back into software names, with ServiceNow singled out as one of the sector leaders. ServiceNow and Snowflake Stocks Trade Up, What You Need To Know
• Neutral Sentiment: Some reports noted that the stock has fallen sharply over the past year despite revenue and profit growth, so investors are still weighing strong fundamentals against a still-extended valuation. After a 50% Drop, Is ServiceNow Stock Worth Buying?
• Negative Sentiment: There are still lingering concerns that AI disruption could pressure traditional enterprise software, and some commentary warned the recent bounce could fade if those fears return. ServiceNow stock flashes a death cross amid rising SaaSpocalypse concerns

Analyst Upgrades and Downgrades

A number of research firms have issued reports on NOW. Benchmark began coverage on shares of ServiceNow in a report on Wednesday, April 1st. They issued a "buy" rating and a $125.00 target price on the stock. Weiss Ratings lowered shares of ServiceNow from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, April 21st. UBS Group set a $150.00 target price on shares of ServiceNow in a report on Thursday, April 23rd. Argus reduced their target price on shares of ServiceNow from $180.00 to $134.00 and set a "buy" rating on the stock in a report on Friday, April 24th. Finally, Macquarie Infrastructure dropped their price objective on shares of ServiceNow from $172.00 to $140.00 and set a "neutral" rating for the company in a research note on Thursday, January 29th. Two 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 issued a Sell rating to the company. Based on data from MarketBeat.com, ServiceNow currently has an average rating of "Moderate Buy" and a consensus target price of $141.89.

Insider Buying and Selling at ServiceNow

In related news, Director Anita M. Sands sold 16,445 shares of the stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the sale, the director owned 30,090 shares of the company's stock, valued at approximately $2,712,312.60. This represents a 35.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Jacqueline P. Canney sold 8,927 shares of the stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $89.60, for a total transaction of $799,859.20. Following the sale, 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. Insiders sold a total of 31,767 shares of company stock worth $2,906,098 in the last quarter. Company insiders own 0.34% of the company's stock.

ServiceNow Trading Up 1.3%

NYSE NOW opened at $103.13 on Thursday. ServiceNow, Inc. has a 12 month low of $81.24 and a 12 month high of $211.48. The company has a 50-day moving average of $99.35 and a 200-day moving average of $126.89. 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 company has a market cap of $106.33 billion, a P/E ratio of 61.46, a P/E/G ratio of 1.85 and a beta of 0.82.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting analysts' consensus estimates of $0.97. The company 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 company's quarterly revenue was up 22.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.81 EPS. As a group, equities analysts predict that ServiceNow, Inc. will post 2.35 earnings per share for the current 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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