Rathbones Group PLC Sells 57,755 Shares of ServiceNow, Inc. $NOW

Key Points

• Rathbones Group cut its ServiceNow position by 7.5%, selling 57,755 shares and retaining 714,191 shares valued at approximately $74.7 million. Institutional investors collectively own 87.18% of the company.
• ServiceNow reported strong second-quarter results, with revenue up 24% year over year to $3.99 billion and EPS of $0.90, beating analyst estimates. The company also raised its full-year revenue outlook and highlighted more than $1 billion in AI-related contract value.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and an average price target of $143.39, although potential layoffs of up to 1,000 employees introduce execution and integration concerns.

Rathbones Group PLC reduced its position in ServiceNow, Inc. (NYSE:NOW - Free Report) by 7.5% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 714,191 shares of the information technology services provider's stock after selling 57,755 shares during the period. Rathbones Group PLC owned about 0.07% of ServiceNow worth $74,669,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Brighton Jones LLC raised its position in ServiceNow by 1.1% in the 4th quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider's stock worth $2,919,000 after buying an additional 30 shares during the last quarter. Sivia Capital Partners LLC lifted its stake in ServiceNow by 4.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider's stock valued at $861,000 after acquiring an additional 34 shares during the period. United Bank boosted its holdings in shares of ServiceNow by 15.5% during the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider's stock valued at $1,562,000 after acquiring an additional 204 shares during the last quarter. Riggs Asset Managment Co. Inc. boosted its holdings in shares of ServiceNow by 2.2% during the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider's stock valued at $1,976,000 after acquiring an additional 42 shares during the last quarter. Finally, Nebula Research & Development LLC grew its stake in shares of ServiceNow by 205.1% in the second quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider's stock worth $931,000 after acquiring an additional 609 shares during the period. 87.18% of the stock is owned by institutional investors.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow raised its full-year revenue outlook, reinforcing confidence in continued demand for its workflow-automation platform and supporting the recent improvement in the stock. Why Shares of ServiceNow Stock Were Rising This Week
• Positive Sentiment: Second-quarter revenue rose approximately 24% year over year to about $4 billion, while adjusted earnings exceeded expectations. Management also highlighted more than $1 billion in AI-related contract value, suggesting AI agents are adding consumption-based revenue rather than simply reducing software-seat demand. ServiceNow Stock Opinions on Q2 Earnings Results
• Positive Sentiment: Analyst commentary remains constructive, with reported price targets materially above the recent trading level. One bullish analysis raised its fair-value estimate to $160, citing accelerating user retention, strong organic growth, pricing power in AI products and a long-term target of $30 billion to $32 billion in subscription revenue. ServiceNow User Retention Is Accelerating
• Neutral Sentiment: Dynamic Lifecycle Innovations launched an IT asset-disposition application on ServiceNow, adding another example of partners expanding the platform’s use cases. The announcement is strategically supportive but is unlikely to materially change near-term revenue expectations. Dynamic Lifecycle Innovations launches new ServiceNow app
• Negative Sentiment: ServiceNow could eliminate up to 1,000 positions this year as part of a post-acquisition “rightsizing” effort. The cuts may improve efficiency and margins, but reports of continuing layoffs create execution, morale and integration concerns for investors. Exclusive: ServiceNow to cut up to 1K jobs

ServiceNow Stock Performance

NOW opened at $111.57 on Monday. The company's 50 day moving average is $105.64 and its 200 day moving average is $106.18. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. The company has a market cap of $115.36 billion, a price-to-earnings ratio of 69.73, a PEG ratio of 1.96 and a beta of 0.94. ServiceNow, Inc. has a 12-month low of $81.24 and a 12-month high of $196.40.

ServiceNow (NYSE:NOW - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, beating 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 business had revenue of $3.99 billion during the quarter, compared to analysts' expectations of $3.93 billion. During the same period in the prior year, the company earned $0.81 earnings per share. The firm's revenue was up 24.0% on a year-over-year basis. On average, equities research analysts predict that ServiceNow, Inc. will post 2.24 EPS for the current year.

Analyst Ratings Changes

NOW has been the subject of several research reports. UBS Group set a $248.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. Capital One Financial raised their target price on shares of ServiceNow from $105.00 to $120.00 and gave the stock an "overweight" rating in a report on Tuesday, May 5th. Bank of America began coverage on shares of ServiceNow in a research note on Monday, May 18th. They set a "buy" rating and a $130.00 target price for the company. Robert W. Baird increased their price target on ServiceNow from $118.00 to $125.00 and gave the company an "outperform" rating in a report on Thursday, July 23rd. Finally, Morgan Stanley set a $180.00 price target on ServiceNow in a research note on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $143.39.

Insider Activity

In related news, Director Anita M. Sands sold 16,445 shares of ServiceNow stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the transaction, the director directly owned 30,090 shares in the company, valued at approximately $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Paul Fipps sold 1,048 shares of the business's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $98.51, for a total value of $103,238.48. Following the sale, the insider directly owned 12,072 shares of the company's stock, valued at $1,189,212.72. This represents a 7.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 19,144 shares of company stock valued at $1,730,097 in the last 90 days. Company insiders own 0.34% of the company's stock.

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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