Rational Advisors Inc. Has $3.96 Million Stake in ServiceNow, Inc. $NOW

Key Points

• Rational Advisors boosted its ServiceNow stake by 442.4% in the fourth quarter, ending with 25,839 shares valued at about $3.96 million.
• Other large institutions also sharply increased holdings, and hedge funds/institutional investors now own 87.18% of ServiceNow’s stock, signaling strong professional interest in the name.
• Analysts remain broadly positive on ServiceNow, with a consensus rating of “Moderate Buy” and an average price target of $141.85, even as some recent reports have trimmed targets and insider sales have been disclosed.

Rational Advisors Inc. raised its position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 442.4% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 25,839 shares of the information technology services provider's stock after buying an additional 21,075 shares during the period. Rational Advisors Inc.'s holdings in ServiceNow were worth $3,958,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds also recently modified their holdings of NOW. Vanguard Group Inc. increased its holdings in shares of ServiceNow by 404.5% in the fourth 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 purchasing an additional 81,752,460 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of ServiceNow by 404.8% in the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock valued at $3,591,425,000 after purchasing an additional 18,854,775 shares in the last quarter. Norges Bank acquired a new stake in shares of ServiceNow in the fourth quarter valued at approximately $2,020,992,000. Fisher Asset Management LLC increased its holdings in shares of ServiceNow by 404.3% in the fourth quarter. Fisher Asset Management LLC now owns 8,351,824 shares of the information technology services provider's stock valued at $1,279,416,000 after purchasing an additional 6,695,802 shares in the last quarter. Finally, Jennison Associates LLC increased its holdings in shares of ServiceNow by 280.1% in the fourth 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. Institutional investors and hedge funds own 87.18% of the company's stock.

Analysts Set New Price Targets

NOW has been the subject of a number of research reports. Citizens Jmp reissued a "market outperform" rating and issued a $157.00 price target on shares of ServiceNow in a report on Tuesday, May 5th. Truist Financial lowered their price target on shares of ServiceNow from $125.00 to $120.00 and set a "buy" rating for the company in a report on Thursday, April 23rd. BTIG Research reissued a "buy" rating and issued a $150.00 price target on shares of ServiceNow in a report on Monday, May 4th. FBN Securities lowered their price target on shares of ServiceNow from $160.00 to $120.00 in a report on Thursday, April 23rd. Finally, Capital One Financial raised their price target on shares of ServiceNow from $105.00 to $120.00 and gave the company an "overweight" rating in a report on Tuesday, May 5th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $141.85.

Insider Activity

In other news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the transaction, the director directly owned 44,930 shares of the company's stock, valued at $3,919,243.90. This trade represents a 3.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of the business's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $98.51, for a total transaction of $103,238.48. Following the completion of the sale, the insider directly owned 12,072 shares in the company, valued at $1,189,212.72. This represents a 7.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. In the last three months, insiders sold 28,071 shares of company stock valued at $2,529,956. 0.34% of the stock is owned by company insiders.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow has been viewed as a leader in the AI-driven software rebound, with recent articles highlighting strong business momentum and investor enthusiasm for its role in agentic AI and enterprise automation. Article Title
• Positive Sentiment: The stock benefited from a broader Monday software rally after Nvidia’s CEO eased fears that AI will disrupt software companies, helping lift sentiment toward names like ServiceNow. Article Title
• Positive Sentiment: ServiceNow was also cited as a beneficiary of the new AI-chip-led rotation into software stocks, which briefly pushed the sector higher and supported bullish momentum in NOW shares. Article Title
• Neutral Sentiment: Recent commentary continues to compare ServiceNow with peers such as Salesforce and Intuit, suggesting investors are still weighing its valuation against its growth profile rather than reacting to a single company-specific event. Article Title
• Negative Sentiment: ServiceNow fell in the latest session as the software rally lost momentum, with investors pulling back from high-multiple tech stocks after a strong run-up. Article Title
• Negative Sentiment: Some recent analysis is turning more cautious on ServiceNow’s valuation, arguing the stock may be less attractive after its sharp AI-driven move higher. Article Title

ServiceNow Trading Down 6.1%

Shares of NYSE NOW opened at $127.59 on Wednesday. The company's fifty day moving average is $98.50 and its 200-day moving average is $123.13. The stock has a market cap of $131.55 billion, a price-to-earnings ratio of 76.04, a P/E/G ratio of 2.24 and a beta of 0.94. ServiceNow, Inc. has a twelve month low of $81.24 and a twelve month high of $211.48. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting analysts' consensus estimates of $0.97. The company had revenue of $3.77 billion for the quarter, compared to analysts' expectations of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business's quarterly revenue was up 22.1% compared to the same quarter last year. During the same period last year, the firm posted $0.81 earnings per share. Equities research analysts predict that ServiceNow, Inc. will post 2.35 EPS for the current year.

ServiceNow 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.

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