RDST Capital LLC Purchases Shares of 76,560 ServiceNow, Inc. $NOW

Key Points

• RDST Capital acquired 76,560 ServiceNow shares worth approximately $8 million in the first quarter, making the position 0.8% of its portfolio. Institutional investors and hedge funds collectively own 87.18% of the stock.
• ServiceNow reported quarterly revenue of $3.99 billion, up 24% year over year, and adjusted earnings of $0.90 per share, exceeding analysts’ $0.86 estimate.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $143.39, although insiders sold 19,144 shares worth about $1.73 million during the last quarter.

RDST Capital LLC acquired a new stake in ServiceNow, Inc. (NYSE:NOW - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm acquired 76,560 shares of the information technology services provider's stock, valued at approximately $8,004,000. ServiceNow accounts for 0.8% of RDST Capital LLC's holdings, making the stock its 20th biggest holding.

Other institutional investors and hedge funds have also made changes to their positions in the company. Vanguard Group Inc. grew its holdings 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 worth $15,619,771,000 after acquiring an additional 81,752,460 shares in the last quarter. State Street Corp raised its holdings in shares of ServiceNow by 406.6% in 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 purchasing an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD raised its holdings in shares of ServiceNow by 371.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock valued at $4,962,692,000 after purchasing an additional 25,517,218 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of ServiceNow by 404.8% during the 4th 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 purchasing an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley lifted its position in shares of ServiceNow by 335.6% during the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock worth $3,482,543,000 after purchasing an additional 17,514,679 shares during the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the completion of the sale, the director directly owned 44,930 shares of the company's stock, valued at approximately $3,919,243.90. This represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 firm's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the transaction, the insider owned 12,072 shares in the company, valued at approximately $1,189,212.72. This trade represents a 7.99% decrease in their ownership of the stock. 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 have sold 19,144 shares of company stock worth $1,730,097 in the last quarter. 0.34% of the stock is owned by insiders.

ServiceNow Stock Performance

NYSE NOW opened at $110.55 on Wednesday. The company has a fifty day moving average of $104.99 and a two-hundred day moving average of $106.84. The company has a market capitalization of $114.30 billion, a PE ratio of 69.09, a P/E/G ratio of 1.86 and a beta of 0.96. ServiceNow, Inc. has a 1 year low of $81.24 and a 1 year high of $201.15. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70.

ServiceNow (NYSE:NOW - Get Free Report) last posted its 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 return on equity of 16.45% and a net margin of 11.34%.The business had revenue of $3.99 billion for the quarter, compared to analysts' expectations of $3.93 billion. During the same quarter in the previous year, the firm earned $0.81 earnings per share. The business's revenue was up 24.0% compared to the same quarter last year. As a group, analysts expect that ServiceNow, Inc. will post 2.24 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on NOW shares. TD Cowen reiterated a "buy" rating and set a $140.00 target price on shares of ServiceNow in a research note on Friday, July 17th. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $248.00 price target (up from $236.00) on shares of ServiceNow in a report on Thursday, July 23rd. Wolfe Research set a $125.00 price objective on ServiceNow in a research report on Thursday, April 23rd. Needham & Company LLC reiterated a "buy" rating and issued a $115.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. Finally, Robert W. Baird raised their target price on ServiceNow from $118.00 to $125.00 and gave the stock an "outperform" rating in a research report on Thursday, July 23rd. One 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 given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $143.39.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s second-quarter performance remains a key bullish argument: revenue grew 24% year over year to $3.99 billion, earnings exceeded estimates, large-deal activity accelerated, and management raised its full-year outlook. The company also reported more than $1 billion in annual contract value from its AI offerings. Is the Market Mispricing ServiceNow's AI Future?
• Positive Sentiment: Analysts and investors are increasingly viewing ServiceNow as an AI beneficiary rather than an AI-disruption victim. Its workflow automation platform, enterprise AI products, and potential shift toward consumption-based pricing could create additional revenue as customers deploy more AI-driven work. ServiceNow Is Building an AI Business for Enterprises
• Positive Sentiment: The company’s expanding cybersecurity business is being highlighted as another potential growth engine beyond AI, while a new integration from IP Fabric could strengthen ServiceNow’s configuration-management database offering and customer value proposition. ServiceNow’s Q2 Earnings Showed It’s More Than an AI Stock
• Neutral Sentiment: ServiceNow remains a popular “value” and turnaround discussion among analysts after falling substantially this year. The stock’s valuation is more attractive than before, but its elevated earnings multiple means investors still require sustained growth and successful AI monetization. ServiceNow's Revenue Growth Is Accelerating
• Negative Sentiment: ServiceNow cut hundreds of jobs as part of a global restructuring and efficiency push. While the reductions may improve operating discipline and align with CEO Bill McDermott’s focus on streamlining workflows, they also signal cost pressures and broader uncertainty across the software sector. ServiceNow Cuts Jobs Amid Global Restructuring and AI Focus

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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