Second Line Capital LLC Increases Stake in ServiceNow, Inc. $NOW

Key Points

• Second Line Capital increased its ServiceNow stake by 60.4% in the second quarter, bringing its holdings to 30,561 shares valued at approximately $3.03 million. Institutional investors collectively own 87.18% of the company.
• Wall Street remains broadly bullish on ServiceNow, with a consensus “Moderate Buy” rating and an average price target of $144.24. Thirty-six analysts rate the stock a Buy, while three rate it a Hold and two a Sell.
• ServiceNow exceeded quarterly expectations, reporting adjusted EPS of $0.90 versus $0.86 expected and revenue of $3.99 billion, up 24% year over year. However, insiders sold 14,081 shares worth about $1.94 million over the past 90 days.

Second Line Capital LLC raised its stake in ServiceNow, Inc. (NYSE:NOW - Free Report) by 60.4% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 30,561 shares of the information technology services provider's stock after acquiring an additional 11,512 shares during the quarter. Second Line Capital LLC's holdings in ServiceNow were worth $3,034,000 at the end of the most recent reporting period.

Several other hedge funds have also bought and sold shares of the stock. Florida Financial Advisors LLC boosted its position in ServiceNow by 5.4% during the 2nd quarter. Florida Financial Advisors LLC now owns 273 shares of the information technology services provider's stock worth $280,000 after acquiring an additional 14 shares during the period. Clark Capital Management Group Inc. grew its stake in ServiceNow by 3.6% during the 3rd quarter. Clark Capital Management Group Inc. now owns 514 shares of the information technology services provider's stock valued at $473,000 after acquiring an additional 18 shares in the last quarter. American Trust increased its holdings in shares of ServiceNow by 1.8% in the 3rd quarter. American Trust now owns 1,029 shares of the information technology services provider's stock valued at $947,000 after purchasing an additional 18 shares during the period. Morse Asset Management Inc increased its holdings in shares of ServiceNow by 0.5% in the 2nd quarter. Morse Asset Management Inc now owns 3,488 shares of the information technology services provider's stock valued at $3,586,000 after purchasing an additional 19 shares during the period. Finally, CYBER HORNET ETFs LLC lifted its position in shares of ServiceNow by 3.7% in the third quarter. CYBER HORNET ETFs LLC now owns 567 shares of the information technology services provider's stock worth $522,000 after purchasing an additional 20 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently commented on NOW. JPMorgan Chase & Co. raised their price target on shares of ServiceNow from $145.00 to $150.00 and gave the stock an "overweight" rating in a report on Thursday, July 23rd. Jefferies Financial Group reiterated a "buy" rating and issued a $140.00 price objective (up from $135.00) on shares of ServiceNow in a research note on Thursday, July 23rd. The Goldman Sachs Group reiterated a "buy" rating on shares of ServiceNow in a research report on Monday, August 3rd. Citigroup restated a "market outperform" rating on shares of ServiceNow in a report on Thursday, July 23rd. Finally, Citic Securities dropped their price target on shares of ServiceNow from $168.00 to $140.00 and set a "buy" rating on the stock in a research note on Thursday, May 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $144.24.

ServiceNow Stock Performance

NOW opened at $141.31 on Tuesday. The company has a market cap of $146.11 billion, a PE ratio of 88.32, a price-to-earnings-growth ratio of 2.57 and a beta of 0.97. The stock has a 50-day moving average of $118.03 and a 200-day moving average of $108.20. ServiceNow, Inc. has a 52-week low of $81.24 and a 52-week high of $194.73. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data 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 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 analyst estimates of $3.93 billion. During the same quarter in the prior year, the firm posted $0.81 EPS. The firm's revenue for the quarter was up 24.0% on a year-over-year basis. As a group, equities research analysts forecast that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Paul Chamberlain sold 2,700 shares of the business's stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the completion of the sale, the director directly owned 43,990 shares in the company, valued at approximately $5,960,645. The trade was a 5.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Jacqueline P. Canney sold 7,847 shares of the company's stock in a transaction on Friday, August 28th. The stock was sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the sale, the insider directly owned 30,042 shares of the company's stock, valued at approximately $4,145,796. This represents a 20.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,081 shares of company stock valued at $1,937,904 over the last 90 days. 0.34% of the stock is currently owned by company insiders.

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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