ServiceNow, Inc. $NOW is Peregrine Capital Management LLC's 6th Largest Position

Key Points

• Peregrine Capital boosted its ServiceNow stake by 398.9% in Q4 to 449,538 shares (about $68.87M), making NOW its 6th-largest holding and reflecting that institutions own roughly 87.18% of the stock.
• ServiceNow beat Q1 estimates with $3.77B revenue and ~22% subscription growth and raised its annual subscription outlook on stronger AI demand, but warned the Armis acquisition will shave ~75 bps off FY operating margin (125 bps in Q2) and cited deal delays, prompting analyst cuts and a sharp stock pullback.

Peregrine Capital Management LLC lifted its stake in ServiceNow, Inc. (NYSE:NOW - Free Report) by 398.9% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 449,538 shares of the information technology services provider's stock after purchasing an additional 359,434 shares during the quarter. ServiceNow comprises approximately 2.1% of Peregrine Capital Management LLC's holdings, making the stock its 6th largest position. Peregrine Capital Management LLC's holdings in ServiceNow were worth $68,865,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently made changes to their positions in the stock. Cohen Klingenstein LLC raised its position in shares of ServiceNow by 400.0% in the 4th quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider's stock worth $1,532,000 after purchasing an additional 8,000 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. grew its position in ServiceNow by 385.9% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider's stock valued at $398,202,000 after purchasing an additional 2,064,440 shares during the last quarter. Natural Investments LLC increased its stake in ServiceNow by 332.0% during the 4th quarter. Natural Investments LLC now owns 16,453 shares of the information technology services provider's stock valued at $2,520,000 after purchasing an additional 12,644 shares in the last quarter. Focus Financial Network Inc. raised its holdings in ServiceNow by 286.1% in the fourth quarter. Focus Financial Network Inc. now owns 53,650 shares of the information technology services provider's stock worth $8,219,000 after buying an additional 39,756 shares during the last quarter. Finally, Telos Capital Management Inc. raised its holdings in ServiceNow by 706.0% in the fourth quarter. Telos Capital Management Inc. now owns 50,940 shares of the information technology services provider's stock worth $7,803,000 after buying an additional 44,620 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

ServiceNow Stock Performance

NOW stock traded down $16.36 on Thursday, hitting $86.71. The company had a trading volume of 17,589,364 shares, compared to its average volume of 20,024,004. ServiceNow, Inc. has a 12-month low of $81.24 and a 12-month high of $211.48. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12. The stock's 50-day simple moving average is $105.55 and its 200 day simple moving average is $138.83. The stock has a market cap of $89.84 billion, a price-to-earnings ratio of 52.17, a P/E/G ratio of 1.68 and a beta of 1.01.

ServiceNow (NYSE:NOW - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting analysts' consensus estimates of $0.97. The business had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The firm's revenue was up 22.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $4.04 EPS. As a group, equities research analysts expect that ServiceNow, Inc. will post 2.49 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

NOW has been the topic of a number of recent analyst reports. Robert W. Baird cut their price target on shares of ServiceNow from $125.00 to $118.00 and set an "outperform" rating on the stock in a report on Thursday. Sanford C. Bernstein upped their price objective on ServiceNow from $219.00 to $226.00 and gave the company an "outperform" rating in a research report on Thursday. The Goldman Sachs Group cut their target price on ServiceNow from $188.00 to $163.00 and set a "buy" rating on the stock in a research note on Thursday. JPMorgan Chase & Co. reduced their target price on ServiceNow from $195.00 to $145.00 and set an "overweight" rating for the company in a report on Thursday. Finally, Oppenheimer set a $130.00 price target on ServiceNow and gave the stock an "outperform" rating in a research note on Wednesday, April 15th. Three analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $155.86.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 subscription revenue and top-line: Subscription revenue grew ~22% YoY and overall Q1 revenue slightly beat consensus, showing continued demand for ServiceNow’s AI-driven platform. BusinessWire Q1 Release
• Positive Sentiment: Company raised its annual subscription revenue outlook, citing stronger AI adoption — a sign management sees sustainable demand for Now Assist and related products. Reuters: Boosts Outlook
• Neutral Sentiment: Strategic moves: ServiceNow closed the Armis acquisition to expand into OT/IoT/cyber asset visibility and announced deeper Google Cloud AI integrations — positive long-term product synergy but with short-term execution risk. Yahoo: Google Cloud Partnership
• Neutral Sentiment: Management tone and events calendar: CEO emphasized AI-driven productivity and an Analyst Day is scheduled for May 4 — useful for forward guidance clarity. Investors.com: Analyst Day
• Negative Sentiment: Middle East deal delays: Management said delayed large deals in the Middle East created ~75 bps of subscription-revenue headwind in Q1 and could push some closures into later quarters — an immediate growth and sentiment headwind. Yahoo: Deal Delays
• Negative Sentiment: Margins to be pressured by Armis purchase: ServiceNow warned the acquisition will create a roughly 75‑bp FY operating-margin headwind (125 bps in Q2), which contributed to investor concern about near-term profitability. WSJ: Armis Margin Impact
• Negative Sentiment: Market reaction and analyst moves: Despite the beat, sentiment soured — multiple shops trimmed price targets and the stock drew higher short interest amid broader AI/disruption worries, amplifying the selloff. Finviz: Analyst PT Cuts Reuters: Short Interest

Insider Buying and Selling

In related news, insider Kevin Thomas Mcbride sold 1,400 shares of the company's stock in a transaction on Friday, February 13th. The stock was sold at an average price of $105.71, for a total transaction of $147,994.00. Following the completion of the sale, the insider owned 26,314 shares in the company, valued at approximately $2,781,652.94. This represents a 5.05% 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 the SEC website. Also, insider Paul Fipps sold 3,696 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $101.77, for a total value of $376,141.92. Following the completion of the transaction, the insider directly owned 8,061 shares in the company, valued at approximately $820,367.97. This represents a 31.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 16,237 shares of company stock valued at $1,697,162 over the last 90 days. Company insiders own 0.34% of the company's stock.

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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