Quantbot Technologies LP Takes Position in ServiceNow, Inc. $NOW

Key Points

• Quantbot Technologies purchased 31,407 ServiceNow shares worth approximately $3.12 million in the second quarter. Institutional investors collectively own 87.18% of the company, with major firms including BlackRock, Vanguard and State Street holding substantial positions.
• Analysts remain broadly bullish, with one Strong Buy, 36 Buy, three Hold and two Sell ratings. ServiceNow has a consensus “Moderate Buy” rating and an average price target of $144.24.
• ServiceNow exceeded quarterly expectations, reporting $0.90 in earnings per share and $3.99 billion in revenue, up 24% year over year. However, its valuation remains elevated at a price-to-earnings ratio of 80.46, while an insider recently sold $188,400 in shares.

Quantbot Technologies LP purchased a new stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 31,407 shares of the information technology services provider's stock, valued at approximately $3,118,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of ServiceNow in the 2nd quarter worth about $9,536,615,000. Vanguard Group Inc. lifted its position in ServiceNow by 404.5% during the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock valued at $15,619,771,000 after acquiring an additional 81,752,460 shares during the period. State Street Corp lifted its position in ServiceNow by 406.6% during the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock valued at $7,337,280,000 after acquiring an additional 38,441,898 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in ServiceNow by 371.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock worth $4,962,692,000 after acquiring an additional 25,517,218 shares in the last quarter. Finally, Geode Capital Management LLC boosted its stake in ServiceNow by 404.8% during the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock worth $3,591,425,000 after acquiring an additional 18,854,775 shares in the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. Wells Fargo & Company reaffirmed an "overweight" rating and set a $175.00 target price (up from $160.00) on shares of ServiceNow in a research note on Wednesday, August 12th. Sanford C. Bernstein reissued an "outperform" rating and issued a $248.00 price target (up from $236.00) on shares of ServiceNow in a research report on Thursday, July 23rd. Benchmark restated a "buy" rating on shares of ServiceNow in a research note on Friday, July 17th. Needham & Company LLC reiterated a "buy" rating and set a $115.00 price objective on shares of ServiceNow in a research note on Thursday, July 23rd. Finally, Truist Financial boosted their target price on ServiceNow from $120.00 to $130.00 and gave the stock a "buy" rating in a report on Thursday, July 9th. One analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, ServiceNow presently has an average rating of "Moderate Buy" and a consensus target price of $144.24.

ServiceNow Stock Performance

Shares of NYSE NOW opened at $128.73 on Monday. The firm's 50-day moving average price is $108.88 and its 200-day moving average price is $105.66. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The company has a market cap of $133.11 billion, a PE ratio of 80.46, a PEG ratio of 2.26 and a beta of 0.94. ServiceNow, Inc. has a 52-week low of $81.24 and a 52-week high of $194.73.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, topping analysts' consensus estimates of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.93 billion. During the same period in the previous year, the business posted $0.81 earnings per share. The business's revenue for the quarter was up 24.0% on a year-over-year basis. As a group, analysts anticipate that ServiceNow, Inc. will post 2.24 EPS for the current year.

Insider Buying and Selling

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $125.60, for a total value of $188,400.00. Following the completion of the sale, the director owned 46,690 shares of the company's stock, valued at approximately $5,864,264. The trade was a 3.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.34% of the company's stock.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow expanded its multi-year partnership with Tech Mahindra to help enterprises move AI projects from pilot programs into production. The “Client Zero” approach combines ServiceNow’s AI platform with Tech Mahindra’s industry expertise, potentially increasing adoption, automation revenue and measurable customer outcomes. Tech Mahindra and ServiceNow Expand Partnership to Deliver Production-Ready Enterprise AI at Scale
• Positive Sentiment: Bank of America raised its ServiceNow price target to $150, citing the company’s positioning to monetize artificial intelligence as concerns about AI disruption to traditional software fade. The move contributed to broader bullish sentiment across software stocks. Bank of America Increases ServiceNow Price Target to $150
• Positive Sentiment: ServiceNow has gained substantially since its latest earnings report, which beat estimates on both adjusted earnings and revenue. Quarterly revenue increased 24% year over year, reinforcing the view that the company remains a leading enterprise AI and workflow platform. ServiceNow Up 41.1% Since Last Earnings Report
• Positive Sentiment: ServiceNow was also selected as a CNBC “Final Trade,” providing additional visibility and signaling continued support from some professional investors. Final Trades: ServiceNow, Vertex and Uber
• Neutral Sentiment: Despite the favorable company news, midday AI buying has been concentrated in government-facing companies such as Palantir and BigBear.ai rather than enterprise software, limiting near-term upside for NOW. How Are Traders Picking the Software Winners?
• Negative Sentiment: Investors continue to monitor competitive threats from newer AI-native automation platforms, including Serval, as well as ServiceNow’s premium valuation. Those concerns may encourage profit-taking after the stock’s sharp post-earnings advance. Serval Wants To Replace ServiceNow With AI That Builds Enterprise Automation

ServiceNow Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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