ServiceNow, Inc. $NOW Shares Acquired by Allen Investment Management LLC

Key Points

• Allen Investment Management LLC sharply increased its ServiceNow stake by 497.2% in the fourth quarter, buying 658,450 additional shares and bringing its total holdings to 790,892 shares worth about $121.2 million.
• ServiceNow’s latest quarterly results were solid, with EPS of $0.97 in line with estimates and revenue of $3.77 billion, slightly above expectations. Revenue rose 22.1% from a year earlier, underscoring continued strong growth.
• Analysts remain generally positive despite some price-target cuts: the stock carries a “Moderate Buy” consensus and an average target price of $141.85. Recent commentary also points to optimism around AI-driven software demand and ServiceNow’s role in enterprise automation.

Allen Investment Management LLC grew its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 497.2% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 790,892 shares of the information technology services provider's stock after purchasing an additional 658,450 shares during the period. ServiceNow makes up about 1.3% of Allen Investment Management LLC's holdings, making the stock its 21st biggest position. Allen Investment Management LLC owned approximately 0.08% of ServiceNow worth $121,157,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in NOW. Meridian Wealth Advisors LLC increased its position in shares of ServiceNow by 2.2% in the third quarter. Meridian Wealth Advisors LLC now owns 552 shares of the information technology services provider's stock valued at $508,000 after buying an additional 12 shares in the last quarter. Valley Brook Capital Group Inc. increased its stake in shares of ServiceNow by 2.1% during the 3rd quarter. Valley Brook Capital Group Inc. now owns 634 shares of the information technology services provider's stock worth $583,000 after purchasing an additional 13 shares in the last quarter. Catalyst Financial Partners LLC raised its stake in ServiceNow by 1.0% in the 3rd quarter. Catalyst Financial Partners LLC now owns 1,270 shares of the information technology services provider's stock valued at $1,169,000 after purchasing an additional 13 shares during the last quarter. JT Stratford LLC grew its position in shares of ServiceNow by 3.5% in the third quarter. JT Stratford LLC now owns 385 shares of the information technology services provider's stock valued at $354,000 after purchasing an additional 13 shares during the period. Finally, Abbot Financial Management Inc. grew its holdings in ServiceNow by 2.9% in the 3rd quarter. Abbot Financial Management Inc. now owns 502 shares of the information technology services provider's stock valued at $462,000 after buying an additional 14 shares during the period. Hedge funds and other institutional investors own 87.18% of the company's stock.

Insider Activity at ServiceNow

In related news, insider Paul Fipps sold 1,048 shares of the business'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 sale, the insider owned 12,072 shares of the company's stock, valued at $1,189,212.72. The trade was a 7.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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. Also, insider Jacqueline P. Canney sold 8,927 shares of ServiceNow stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $89.60, for a total transaction of $799,859.20. Following the completion of the transaction, the insider owned 29,531 shares in the company, valued at approximately $2,645,977.60. This trade represents a 23.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 28,071 shares of company stock valued at $2,529,956 over the last quarter. Corporate insiders own 0.34% of the company's stock.

ServiceNow Stock Performance

Shares of NOW stock opened at $135.70 on Tuesday. The company has a market cap of $139.91 billion, a P/E ratio of 80.87, a PEG ratio of 2.05 and a beta of 0.94. The business has a 50 day moving average of $98.50 and a two-hundred day moving average of $123.13. ServiceNow, Inc. has a 52 week low of $81.24 and a 52 week high of $211.48. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.97. The business had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The business's revenue for the quarter was up 22.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.81 EPS. As a group, analysts anticipate that ServiceNow, Inc. will post 2.36 EPS for the current year.

Analyst Upgrades and Downgrades

NOW has been the subject of several research analyst reports. Raymond James Financial dropped their price target on ServiceNow from $160.00 to $130.00 and set an "outperform" rating for the company in a research note on Thursday, April 23rd. Mizuho dropped their price objective on shares of ServiceNow from $150.00 to $140.00 and set an "outperform" rating on the stock in a research note on Thursday, April 23rd. Evercore boosted their target price on shares of ServiceNow from $140.00 to $150.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 5th. Bank of America initiated coverage on shares of ServiceNow in a research note on Monday, May 18th. They set a "buy" rating and a $130.00 price target on the stock. Finally, Sanford C. Bernstein restated an "outperform" rating and set a $236.00 price objective (up from $226.00) on shares of ServiceNow in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, ServiceNow has an average rating of "Moderate Buy" and a consensus target price of $141.85.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is benefiting from a broad software rally after Nvidia’s Jensen Huang said AI should be seen as an opportunity for software firms rather than a threat. ServiceNow, Adobe stocks jump as Nvidia's new AI chip sparks software rally
• Positive Sentiment: Investors are also reacting to ServiceNow’s recent quarterly results, which beat revenue estimates and showed continued double-digit growth, supporting the view that fundamentals remain strong. ServiceNow (NOW) shares skyrocket, what you need to know
• Positive Sentiment: Coverage points to ServiceNow as a leader in the software comeback, with investors betting the sector may have more room to rebound as AI demand grows. ServiceNow Is Leading a Software Comeback for These Stocks
• Neutral Sentiment: Commentary around “agentic AI” and ServiceNow’s role in enterprise automation is adding to bullish sentiment, but it is more narrative-driven than a new hard catalyst. What Exactly Is Agentic AI, and Why Are Some Stocks Blowing Up Because of It? (NOW)
• Neutral Sentiment: Analyst and media coverage continues to highlight ServiceNow as a stock with upside potential, reinforcing the positive tone but not adding a new company-specific announcement. ServiceNow Stock: Is NOW Underperforming the Technology Sector?

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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