Prime Capital Investment Advisors LLC Purchases 9,043 Shares of ServiceNow, Inc. $NOW

Key Points

• Prime Capital Investment Advisors increased its ServiceNow stake by 11.2% in the third quarter, purchasing 9,043 additional shares and bringing its holdings to 89,823 shares valued at approximately $12.0 million. Institutional investors collectively own 87.18% of the company.
• ServiceNow reported quarterly revenue of $3.99 billion, up 24% year over year, and earnings per share of $0.90, exceeding analyst expectations. Shares recently traded at $149.62, up 2.9%.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $152.71. However, insiders have sold 14,081 shares worth about $1.94 million over the past 90 days, while layoffs in San Diego raise questions about sales execution and growth momentum.

Prime Capital Investment Advisors LLC increased its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 11.2% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 89,823 shares of the information technology services provider's stock after acquiring an additional 9,043 shares during the quarter. Prime Capital Investment Advisors LLC's holdings in ServiceNow were worth $12,037,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Commonwealth Financial Services LLC increased its position in shares of ServiceNow by 11.9% during the third quarter. Commonwealth Financial Services LLC now owns 4,001 shares of the information technology services provider's stock valued at $536,000 after acquiring an additional 424 shares during the last quarter. Net Worth Advisory Group boosted its holdings in shares of ServiceNow by 69.1% in the 3rd quarter. Net Worth Advisory Group now owns 4,243 shares of the information technology services provider's stock valued at $584,000 after buying an additional 1,734 shares in the last quarter. Focused Alpha LLC purchased a new stake in shares of ServiceNow in the third quarter valued at about $737,000. Jeppson Wealth Management LLC acquired a new position in ServiceNow in the 3rd quarter valued at $246,000. Finally, CWA Asset Management Group LLC grew its holdings in ServiceNow by 6.4% during the third quarter. CWA Asset Management Group LLC now owns 18,209 shares of the information technology services provider's stock worth $2,440,000 after acquiring an additional 1,103 shares during the period. Hedge funds and other institutional investors own 87.18% of the company's stock.

Insider Activity at ServiceNow

In other news, insider Paul Fipps sold 2,034 shares of the firm's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $147.87, for a total value of $300,767.58. Following the completion of the transaction, the insider directly owned 18,305 shares of the company's stock, valued at $2,706,760.35. This trade represents a 10.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Paul Chamberlain sold 2,700 shares of the business's stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $135.50, for a total value of $365,850.00. Following the completion of the sale, the director owned 43,990 shares of the company's stock, valued at $5,960,645. The trade was a 5.78% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 14,081 shares of company stock worth $1,937,904 over the last ninety days. Insiders own 0.34% of the company's stock.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analyst upgrades and buy recommendations: BMO Capital Markets named ServiceNow a new Top Pick, while a separate Wall Street analysis argued the stock could have as much as 70% upside because the company’s AI business has reached an important milestone. ServiceNow was also selected on CNBC’s “Final Trades.” These 2 software stocks are new Top Picks at BMO ServiceNow Fell 20% Over a Year But This Wall Street Analyst Predicts 70% Gains From Here
• Positive Sentiment: AI and sticky-demand positioning: ServiceNow is viewed as a beneficiary of enterprise AI adoption rather than a company threatened by it. Analysts cited the difficulty of replacing its workflow platform and expect upcoming earnings reports to show greater AI monetization. 4 Stocks With Demand So Sticky That the AI Sell-Off Barely Touched Them at All
• Positive Sentiment: Expanded healthcare partnership: Simplify Alpha is expanding its partnership with ServiceNow to develop payer-specific AI and workflow solutions for health plans. The deal could broaden ServiceNow’s use cases in claims and other healthcare operations. Simplify Alpha Expands Partnership with ServiceNow to Build Payer-Specific Solutions
• Neutral Sentiment: Growth sustainability remains a question: ServiceNow has outperformed significantly, but investors are debating whether it can maintain strong growth at its current scale and valuation. A comparison with Workday showed ServiceNow leading in revenue growth across recent quarters, offering support for the bullish case while highlighting elevated expectations. Can ServiceNow Keep Growing at This Size?
• Negative Sentiment: Layoffs create a mixed signal: ServiceNow reportedly cut additional sales jobs in San Diego, marking the company’s third round of layoffs there this year. The reductions could improve efficiency, but may also raise concerns about sales execution and near-term growth momentum.

Analysts Set New Price Targets

A number of research firms have issued reports on NOW. Guggenheim upgraded shares of ServiceNow from a "neutral" rating to a "buy" rating and set a $125.00 target price on the stock in a report on Wednesday, July 1st. Needham & Company LLC boosted their target price on shares of ServiceNow from $115.00 to $155.00 and gave the stock a "buy" rating in a research report on Friday, September 11th. Argus increased their target price on ServiceNow from $134.00 to $170.00 and gave the stock a "buy" rating in a research report on Wednesday, October 7th. Oppenheimer reiterated an "outperform" rating and issued a $165.00 price objective (up from $140.00) on shares of ServiceNow in a report on Tuesday, October 13th. Finally, JPMorgan Chase & Co. raised their target price on shares of ServiceNow from $145.00 to $150.00 and gave the stock an "overweight" rating in a report on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $152.71.

ServiceNow Trading Up 2.9%

NOW traded up $4.26 during trading on Tuesday, reaching $149.62. 5,984,389 shares of the company's stock were exchanged, compared to its average volume of 21,456,287. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The company's fifty day moving average price is $135.56 and its 200-day moving average price is $114.01. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $192.97. The firm has a market capitalization of $154.71 billion, a PE ratio of 93.47, a P/E/G ratio of 2.61 and a beta of 0.99.

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 for the quarter, beating 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 net margin of 11.34% and a return on equity of 16.45%. The firm's revenue for the quarter was up 24.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.81 earnings per share. As a group, equities analysts forecast that ServiceNow, Inc. will post 2.22 EPS for the current year.

ServiceNow Company Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company's products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.

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