ServiceNow, Inc. $NOW Holdings Lessened by Aberdeen Group plc

Key Points

• Aberdeen Group cut its ServiceNow stake by 35.6% in the third quarter, selling 524,744 shares and retaining 948,033 shares valued at about $127 million. Institutional investors overall owned 87.18% of the company.
• ServiceNow reported quarterly EPS of $1.00, slightly below the $1.02 consensus, while revenue of $4.11 billion topped estimates and grew 20.5% year over year.
• Analyst sentiment was mixed but leaned positive: MarketBeat reported a “Moderate Buy” consensus and an average price target of $154.50, alongside recent ratings ranging from strong sell to overweight.

Aberdeen Group plc reduced its stake in ServiceNow, Inc. (NYSE:NOW - Free Report) by 35.6% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 948,033 shares of the information technology services provider's stock after selling 524,744 shares during the period. Aberdeen Group plc owned approximately 0.09% of ServiceNow worth $127,046,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also added to or reduced their stakes in the stock. Moors & Cabot Inc. raised its stake in ServiceNow by 2.5% in the third quarter. Moors & Cabot Inc. now owns 52,001 shares of the information technology services provider's stock valued at $6,969,000 after purchasing an additional 1,251 shares in the last quarter. Allworth Financial LP grew its stake in ServiceNow by 2.4% during the third quarter. Allworth Financial LP now owns 32,824 shares of the information technology services provider's stock worth $4,399,000 after buying an additional 781 shares in the last quarter. Fisher Asset Management LLC grew its stake in ServiceNow by 8.8% during the third quarter. Fisher Asset Management LLC now owns 8,724,159 shares of the information technology services provider's stock worth $1,169,125,000 after buying an additional 705,841 shares in the last quarter. SVB Wealth LLC grew its stake in ServiceNow by 74.0% during the third quarter. SVB Wealth LLC now owns 4,556 shares of the information technology services provider's stock worth $611,000 after buying an additional 1,938 shares in the last quarter. Finally, Point Windward Advisors Inc. bought a new position in ServiceNow in the 3rd quarter valued at about $540,000. Institutional investors and hedge funds own 87.18% of the company's stock.

ServiceNow Price Performance

NOW stock opened at $102.14 on Friday. The company has a 50 day simple moving average of $132.09 and a 200 day simple moving average of $114.07. The stock has a market cap of $106.02 billion, a price-to-earnings ratio of 73.48, a P/E/G ratio of 1.97 and a beta of 1.00. ServiceNow, Inc. has a 1 year low of $81.24 and a 1 year high of $175.00. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.72 and a quick ratio of 0.72.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The information technology services provider reported $1.00 EPS for the quarter, missing the consensus estimate of $1.02 by ($0.02). The company had revenue of $4.11 billion during the quarter, compared to the consensus estimate of $4.09 billion. ServiceNow had a net margin of 9.36% and a return on equity of 15.17%. ServiceNow's revenue for the quarter was up 20.5% on a year-over-year basis. During the same period in the previous year, the company earned $4.82 EPS. Research analysts anticipate that ServiceNow, Inc. will post 2.12 EPS for the current fiscal year.

Insider Transactions at ServiceNow

In other news, Director Paul Chamberlain sold 2,700 shares of the company's stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $135.50, for a total value of $365,850.00. Following the completion of the transaction, the director owned 43,990 shares of the company's stock, valued at $5,960,645. This represents a 5.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Paul Fipps sold 2,034 shares of the firm's stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the transaction, the insider owned 18,305 shares of the company's stock, valued at approximately $2,706,760.35. This trade represents a 10.00% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 13,870 shares of company stock worth $1,880,595. Corporate insiders own 0.34% of the company's stock.

Key Stories Impacting ServiceNow

These are some of the NOW stories that stood out recently:

• Positive Sentiment: ServiceNow launched its Autonomous CRM Engine, designed to map existing CRM systems and help accelerate migrations, with ongoing monitoring for configuration issues. It is in controlled availability, with broader expansion planned for 2027; Datacom and Xactly are among its adopters. The launch could support adoption of ServiceNow’s AI products. Article: ServiceNow launches Autonomous CRM Engine
• Positive Sentiment: ServiceNow was cited as an AI stock to consider after Wells Fargo improved its outlook on the AI infrastructure trade. Separately, the article reports that Argus still rates the stock a Buy, offering a supportive analyst view despite the steep decline. Article: Argus rates ServiceNow a Buy
• Negative Sentiment: A law firm announced an investigation into potential claims on behalf of ServiceNow investors. The announcement does not establish wrongdoing, but could create a reputational or legal overhang as more information emerges. Article: Pomerantz investigation announcement

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. KeyCorp reissued an "underweight" rating and issued a $110.00 price objective (up from $85.00) on shares of ServiceNow in a research note on Thursday, October 29th. Zacks Research downgraded ServiceNow from a "hold" rating to a "strong sell" rating in a report on Monday, October 19th. JPMorgan Chase & Co. boosted their price target on ServiceNow from $150.00 to $160.00 and gave the stock an "overweight" rating in a report on Thursday, October 29th. Mizuho set a $165.00 price target on ServiceNow in a report on Thursday, October 29th. Finally, Bank of America upped their price objective on ServiceNow from $130.00 to $150.00 and gave the stock a "buy" rating in a research report on Wednesday, August 19th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, ServiceNow has a consensus rating of "Moderate Buy" and a consensus price target of $154.50.

ServiceNow Company Profile

ServiceNow, Inc. provides cloud-based software that helps organizations manage digital workflows and automate business processes. Founded in 2004 by Fred Luddy, the company began with a focus on IT service management and has expanded its platform to support a range of enterprise operations. Its products include tools for IT service and operations management, customer service, human resources, security, and application development. ServiceNow also offers artificial intelligence capabilities, including tools designed to help organizations automate tasks and find information across workflows.

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