ServiceNow, Inc. $NOW Shares Acquired by Capital Group Private Client Services Inc.

Key Points

• Capital Group Private Client Services Inc. boosted its ServiceNow stake by 383% in the fourth quarter, ending with 140,115 shares valued at about $21.5 million.
• Other major institutions also sharply increased their positions, and 87.18% of ServiceNow shares are owned by institutional investors and hedge funds.
• ServiceNow reported quarterly EPS of $0.97, matching estimates, while revenue of $3.77 billion slightly beat expectations and rose 22.1% year over year; analysts currently rate the stock a Moderate Buy with an average target price of $141.85.

Capital Group Private Client Services Inc. raised its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 383.0% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 140,115 shares of the information technology services provider's stock after purchasing an additional 111,104 shares during the period. Capital Group Private Client Services Inc.'s holdings in ServiceNow were worth $21,464,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in NOW. Vanguard Group Inc. increased its position in shares of ServiceNow by 404.5% during the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock worth $15,619,771,000 after purchasing an additional 81,752,460 shares in the last quarter. Geode Capital Management LLC increased its position in shares of ServiceNow by 404.8% during the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock worth $3,591,425,000 after purchasing an additional 18,854,775 shares in the last quarter. Norges Bank acquired a new position in shares of ServiceNow during the fourth quarter worth $2,020,992,000. Fisher Asset Management LLC increased its position in shares of ServiceNow by 404.3% during the fourth quarter. Fisher Asset Management LLC now owns 8,351,824 shares of the information technology services provider's stock worth $1,279,416,000 after purchasing an additional 6,695,802 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its position in shares of ServiceNow by 409.0% during the fourth quarter. Bank of New York Mellon Corp now owns 8,008,668 shares of the information technology services provider's stock worth $1,226,848,000 after purchasing an additional 6,435,140 shares in the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, insider Jacqueline P. Canney sold 8,927 shares of the company's stock in a transaction on Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the sale, the insider directly owned 29,531 shares of the company's stock, valued at approximately $2,645,977.60. This represents a 23.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Paul Fipps sold 1,048 shares of the company'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 approximately $1,189,212.72. The trade was 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 sold a total of 28,071 shares of company stock valued at $2,529,956 in the last three months. Company insiders own 0.34% of the company's stock.

ServiceNow Price Performance

Shares of NOW opened at $112.45 on Friday. The firm has a market capitalization of $115.94 billion, a PE ratio of 67.02, a price-to-earnings-growth ratio of 1.86 and a beta of 0.94. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $211.48. The company's fifty day moving average price is $99.48 and its 200-day moving average price is $122.03.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting analysts' consensus estimates of $0.97. The firm had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business's quarterly revenue was up 22.1% compared to the same quarter last year. During the same period in the previous year, the company earned $0.81 earnings per share. On average, equities research analysts predict that ServiceNow, Inc. will post 2.35 EPS for the current year.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on NOW. Citigroup upped their price target on ServiceNow from $154.00 to $158.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. Weiss Ratings downgraded ServiceNow from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, April 21st. Benchmark initiated coverage on ServiceNow in a research report on Wednesday, April 1st. They set a "buy" rating and a $125.00 price target on the stock. JPMorgan Chase & Co. dropped their price objective on shares of ServiceNow from $195.00 to $145.00 and set an "overweight" rating on the stock in a report on Thursday, April 23rd. Finally, 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 report on Thursday, April 23rd. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, ServiceNow presently has an average rating of "Moderate Buy" and an average target price of $141.85.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: New coverage highlights bullish catalysts for ServiceNow, including accelerating AI adoption, a model-agnostic architecture, and a possible path to $30 billion in revenue by 2030, which supports the long-term growth story. Article Title
• Positive Sentiment: Cognizant’s integration with ServiceNow’s AI Control Tower underscores growing demand for ServiceNow’s AI governance tools in regulated enterprise environments, potentially expanding use cases and customer adoption. Article Title
• Positive Sentiment: Analysts and recent commentary say EmployeeWorks is gaining traction quickly, with larger deals and broader AI adoption helping to reinforce ServiceNow’s growth narrative. Article Title
• Neutral Sentiment: ServiceNow’s recent conference appearances and transcript releases keep the company visible to investors, but they do not appear to contain a major new catalyst on their own. Article Title
• Neutral Sentiment: Some valuation-focused coverage notes that the stock has had a mixed year, with a strong recent bounce offset by weaker longer-term performance, suggesting investors are still debating whether the rebound is justified. Article Title
• Negative Sentiment: Multiple articles point to pressure on the shares from acquisition integration costs, deal delays, and intensifying competition, which are weighing on near-term expectations. Article Title
• Negative Sentiment: Friday’s decline is also being driven by a broader market sell-off, with enterprise software and other growth names facing risk-off trading as investors pull back from higher-valuation tech. Article Title
• Negative Sentiment: Additional commentary notes that large insider buying in ServiceNow occurred near the peak of earlier SaaS pessimism, highlighting how far sentiment and the stock have already fallen since then. Article Title

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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