Resona Asset Management Co. Ltd. Has $86.24 Million Stock Holdings in ServiceNow, Inc. $NOW

Key Points

• Resona Asset Management increased its ServiceNow stake by 22.6% in the first quarter, ending with 823,933 shares worth about $86.24 million.
• Analysts remain generally positive on ServiceNow, with a Moderate Buy consensus and an average price target of $141.22, though several firms recently cut their targets.
• ServiceNow reported Q1 EPS of $0.97 and revenue of $3.77 billion, both in line with or slightly above estimates, while revenue rose 22.1% year over year.

Resona Asset Management Co. Ltd. raised its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 22.6% in the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 823,933 shares of the information technology services provider's stock after acquiring an additional 151,830 shares during the period. Resona Asset Management Co. Ltd. owned approximately 0.08% of ServiceNow worth $86,237,000 at the end of the most recent reporting period.

A number of other large investors also recently made changes to their positions in the stock. Personal CFO Solutions LLC increased its holdings in ServiceNow by 69.5% in the first quarter. Personal CFO Solutions LLC now owns 21,580 shares of the information technology services provider's stock valued at $2,256,000 after purchasing an additional 8,845 shares during the last quarter. DSM Capital Partners LLC boosted its holdings in ServiceNow by 45.6% during the first quarter. DSM Capital Partners LLC now owns 475,149 shares of the information technology services provider's stock worth $49,677,000 after buying an additional 148,882 shares during the last quarter. Oregon Public Employees Retirement Fund boosted its holdings in ServiceNow by 0.8% during the first quarter. Oregon Public Employees Retirement Fund now owns 119,725 shares of the information technology services provider's stock worth $12,517,000 after buying an additional 900 shares during the last quarter. Axxcess Wealth Management LLC boosted its holdings in ServiceNow by 110.8% during the first quarter. Axxcess Wealth Management LLC now owns 7,099 shares of the information technology services provider's stock worth $742,000 after buying an additional 3,731 shares during the last quarter. Finally, Childress Capital Advisors LLC grew its position in shares of ServiceNow by 12.3% during the 1st quarter. Childress Capital Advisors LLC now owns 4,828 shares of the information technology services provider's stock worth $505,000 after buying an additional 530 shares during the period. 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 recent analyst reports. Argus lowered their price target on ServiceNow from $180.00 to $134.00 and set a "buy" rating for the company in a research note on Friday, April 24th. Morgan Stanley reduced their price objective on shares of ServiceNow from $210.00 to $180.00 and set an "overweight" rating on the stock in a research note on Thursday, April 23rd. Weiss Ratings downgraded shares of ServiceNow from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, April 21st. Barclays reaffirmed an "overweight" rating and issued a $134.00 target price (up from $132.00) on shares of ServiceNow in a research note on Tuesday, May 5th. Finally, JPMorgan Chase & Co. reduced their price target on shares of ServiceNow from $195.00 to $145.00 and set an "overweight" rating on the stock in a research report on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, ServiceNow currently has a consensus rating of "Moderate Buy" and an average price target of $141.22.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow shares have been lifted by a broader rotation into beaten-down software stocks, with investors moving away from high-flying semiconductors and into enterprise software names. ServiceNow (NOW) Stock Is Up, What You Need To Know
• Positive Sentiment: Traders are also reacting to a more constructive analyst tone and fresh AI product momentum, with Guggenheim reportedly dismissing the “software extinction” thesis and upgrading ServiceNow. Why ServiceNow Stock Is Climbing After Guggenheim Dismisses Software 'Extinction' Valuation
• Positive Sentiment: ServiceNow is gaining attention for new AI and government/defense partnerships, including work tied to mission-critical biosurveillance and state health systems, which could expand its addressable market beyond workflow automation. ServiceNow (NOW) Lands Defense And State AI Partnerships That Reach Beyond Workflows
• Positive Sentiment: Another bullish angle is that outside coverage is arguing the “AI bear case” against ServiceNow is weakening, reinforcing the idea that the stock may still have upside despite valuation concerns. ServiceNow: The AI Bear Case Is Falling Apart
• Neutral Sentiment: Several recent pieces, including comparisons with Salesforce and EPAM, are largely valuation and strategy debates rather than immediate catalysts, so they are more likely to shape longer-term sentiment than today’s trading. EPAM or NOW: Which Is the Better Value Stock Right Now?
• Neutral Sentiment: ServiceNow’s appearance in “most watched” and “final trades” media coverage is adding visibility, but these mentions do not appear to be tied to a fundamental business update. ServiceNow, Inc. (NOW) is Attracting Investor Attention: Here is What You Should Know
• Negative Sentiment: Macro risk is still present for software stocks, as Middle East tensions pressured peers like Palantir and Salesforce; that kind of market weakness could spill over into ServiceNow if risk appetite fades. Palantir Leads Software Stocks Lower

Insider Activity at ServiceNow

In related news, Director Anita M. Sands sold 16,445 shares of the business's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total value of $1,482,352.30. Following the sale, the director directly owned 30,090 shares of the company's stock, valued at approximately $2,712,312.60. The trade was a 35.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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. Insiders have sold 28,071 shares of company stock worth $2,529,956 over the last ninety days. 0.34% of the stock is owned by corporate insiders.

ServiceNow Trading Down 2.6%

NYSE:NOW opened at $107.87 on Thursday. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84. The business's 50-day simple moving average is $101.74 and its 200-day simple moving average is $111.62. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $210.20. The stock has a market capitalization of $111.22 billion, a PE ratio of 64.29, a price-to-earnings-growth ratio of 1.84 and a beta of 0.96.

ServiceNow (NYSE:NOW - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.97. The business had revenue of $3.77 billion during the quarter, compared to analysts' expectations of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.ServiceNow's revenue for the quarter was up 22.1% compared to the same quarter last year. During the same period in the prior year, the business earned $0.81 EPS. Sell-side analysts expect that ServiceNow, Inc. will post 2.34 earnings per share for the current fiscal year.

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.

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