Prosperitas Financial LLC Buys New Shares in ServiceNow, Inc. $NOW

Prosperitas Financial LLC purchased a new position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 39,784 shares of the information technology services provider's stock, valued at approximately $5,331,000. ServiceNow makes up approximately 1.6% of Prosperitas Financial LLC's holdings, making the stock its 26th biggest holding.

A number of other hedge funds have also made changes to their positions in the stock. BlackRock Inc. bought a new position in ServiceNow during the 2nd quarter valued at $9,536,615,000. State Street Corp grew its stake in ServiceNow by 2.0% in the second quarter. State Street Corp now owns 49,038,218 shares of the information technology services provider's stock worth $4,868,514,000 after purchasing an additional 979,726 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in ServiceNow by 16.6% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 16,638,071 shares of the information technology services provider's stock worth $1,651,828,000 after purchasing an additional 2,362,606 shares in the last quarter. Amundi increased its holdings in ServiceNow by 60.9% in the first quarter. Amundi now owns 11,479,098 shares of the information technology services provider's stock valued at $1,200,140,000 after buying an additional 4,346,722 shares during the last quarter. Finally, Bank of New York Mellon Corp increased its holdings in ServiceNow by 6.5% in the first quarter. Bank of New York Mellon Corp now owns 8,526,931 shares of the information technology services provider's stock valued at $891,491,000 after buying an additional 518,263 shares during the last quarter. Institutional investors and hedge funds own 87.18% of the company's stock.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow reported 20.5% year-over-year revenue growth, supported by subscription demand, and raised its 2026 artificial-intelligence contract target to $1.7 billion. Management and bullish analysts argue that AI adoption could accelerate growth in 2027. ServiceNow: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts continue to rate NOW Buy or Overweight despite reducing their price targets. JPMorgan, Piper Sandler, Wells Fargo and Oppenheimer still see substantial long-term upside, suggesting the sell-off may have been excessive. ServiceNow stock is on track for its largest drop on record
• Positive Sentiment: A new partnership with BDO Canada will help organizations govern AI and automate operations using ServiceNow’s platform, providing potential support for future enterprise demand. BDO Canada partners with ServiceNow
• Neutral Sentiment: ServiceNow’s CEO has defended the company’s valuation and long-term opportunity, while a reported $3 million insider stock purchase may signal management confidence. However, such commentary has not offset investor concerns about guidance. ServiceNow CEO makes striking unicorn claim
• Negative Sentiment: The primary catalyst for the sell-off was management’s forecast for slower fourth-quarter current remaining performance obligation growth—about 18.5%, below the approximately 21.5% revenue-growth outlook. Because cRPO represents contracted future revenue, investors viewed the gap as a warning that demand may be weakening. ServiceNow Guides to Slower Backlog Growth
• Negative Sentiment: Third-quarter adjusted earnings of $1.00 per share fell short of the $1.02 consensus estimate. The miss, combined with concerns that AI could disrupt traditional software pricing and demand, overshadowed the revenue beat and higher AI target. ServiceNow shares plunge after earnings
• Negative Sentiment: Investors are also monitoring ServiceNow’s roughly $7.5 billion debt load and rising interest costs, while a shareholder investigation into potential securities-law violations adds reputational and legal uncertainty. ServiceNow’s Debt and Interest Costs Jump

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. UBS Group reiterated an "underweight" rating on shares of ServiceNow in a research report on Thursday. Zacks Research lowered shares of ServiceNow from a "hold" rating to a "strong sell" rating in a report on Monday, October 19th. KeyCorp reaffirmed an "underweight" rating and issued a $110.00 price target (up from $85.00) on shares of ServiceNow in a report on Thursday. Mizuho set a $165.00 price objective on shares of ServiceNow in a research report on Thursday. Finally, Evercore reiterated an "outperform" rating on shares of ServiceNow in a research note on Tuesday, October 13th. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, ServiceNow has a consensus rating of "Moderate Buy" and an average target price of $154.50.

Insiders Place Their Bets

In other news, insider Paul Fipps sold 2,034 shares of ServiceNow stock in a transaction on Monday, August 31st. The stock was sold at an average price of $147.87, for a total transaction of $300,767.58. Following the transaction, the insider owned 18,305 shares in the company, valued at approximately $2,706,760.35. The trade was a 10.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Jacqueline P. Canney sold 7,847 shares of the company's stock in a transaction on Friday, August 28th. The shares were sold at an average price of $138.00, for a total value of $1,082,886.00. Following the transaction, the insider directly owned 30,042 shares in the company, valued at $4,145,796. The trade was a 20.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 14,081 shares of company stock worth $1,937,904 over the last ninety days. 0.34% of the stock is currently owned by company insiders.

ServiceNow Stock Performance

Shares of NYSE NOW opened at $105.12 on Friday. The stock has a fifty day moving average price of $138.71 and a two-hundred day moving average price of $115.45. The firm has a market cap of $109.11 billion, a P/E ratio of 75.63, a PEG ratio of 2.02 and a beta of 0.99. ServiceNow, Inc. has a 1 year low of $81.24 and a 1 year high of $189.53. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.70 and a current ratio of 0.72.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.02 by ($0.02). ServiceNow had a return on equity of 15.17% and a net margin of 9.36%. The business had revenue of $4.11 billion during the quarter, compared to analyst estimates of $4.09 billion. During the same period in the prior year, the firm earned $4.82 EPS. The business's revenue for the quarter was up 20.5% on a year-over-year basis. Research analysts forecast that ServiceNow, Inc. will post 2.21 EPS for the current fiscal year.

ServiceNow 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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