ServiceNow, Inc. $NOW Shares Acquired by Russell Investments Group Ltd.

Key Points

• Russell Investments Group Ltd. sharply increased its ServiceNow stake by 494.7% in the fourth quarter, ending with 2.14 million shares valued at about $327.6 million.
• ServiceNow is getting a boost from AI-focused partnerships with Cognizant and Wipro, while Benchmark also raised its price target to $130 and reiterated a buy rating.
• There are some risks and mixed signals: insiders have been selling shares, and a reported security breach exposing enterprise customer data could hurt trust and retention.

Russell Investments Group Ltd. grew its stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 494.7% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 2,136,340 shares of the information technology services provider's stock after purchasing an additional 1,777,124 shares during the quarter. Russell Investments Group Ltd. owned approximately 0.20% of ServiceNow worth $327,573,000 as of its most recent SEC filing.

Several other hedge funds have also made changes to their positions in NOW. IAG Wealth Partners LLC grew its stake in ServiceNow by 200.0% during the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after buying an additional 18 shares during the last quarter. Noble Wealth Management PBC lifted its stake in ServiceNow by 400.0% in the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock valued at $25,000 after buying an additional 128 shares during the last quarter. Millstone Evans Group LLC lifted its stake in ServiceNow by 400.0% in the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock valued at $25,000 after buying an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC boosted its holdings in shares of ServiceNow by 540.0% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after acquiring an additional 135 shares during the period. Finally, Blueline Advisors LLC acquired a new position in shares of ServiceNow during the fourth quarter valued at $25,000. Institutional investors own 87.18% of the company's stock.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Benchmark raised its price target on ServiceNow to $130 from $125 and reiterated a buy rating, signaling confidence in further upside after recent analyst conversations. Street Insider article
• Positive Sentiment: ServiceNow announced or expanded AI-focused partnerships with Cognizant and Wipro to help enterprises move from AI pilots to full-scale deployment, which supports the company’s growth narrative around agentic AI workflows. Cognizant partnership article Wipro partnership article
• Positive Sentiment: Recent coverage also noted that ServiceNow has gained more than 16% over the past month, suggesting improving investor sentiment around its AI and enterprise workflow strategy. Yahoo Finance article
• Neutral Sentiment: Market articles highlighted ServiceNow’s recent outperformance versus the broader market in a prior session, but did not point to a new company-specific catalyst. MarketBeat/Zacks article
• Neutral Sentiment: Some commentary compared ServiceNow unfavorably with Salesforce on valuation and earnings momentum, which may keep pressure on the stock’s multiple. Zacks article
• Negative Sentiment: A report about a ServiceNow security breach exposing enterprise customer data could raise concerns about trust, compliance, and customer retention. CPO Magazine article

Insider Activity at ServiceNow

In other ServiceNow news, insider Jacqueline P. Canney sold 8,927 shares of the company's stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the completion of the sale, the insider directly owned 29,531 shares in the company, valued at $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 SEC, which is available at this hyperlink. Also, Director Anita M. Sands sold 16,445 shares of the stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total value of $1,482,352.30. Following the transaction, the director directly owned 30,090 shares of the company's stock, valued at approximately $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 28,071 shares of company stock worth $2,529,956 over the last ninety days. Insiders own 0.34% of the company's stock.

Analyst Ratings Changes

A number of analysts recently weighed in on NOW shares. Citizens Jmp reaffirmed a "market outperform" rating and issued a $157.00 price objective on shares of ServiceNow in a report on Tuesday, May 5th. Citigroup boosted their target price on shares of ServiceNow from $154.00 to $158.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. Robert W. Baird decreased their target price on shares of ServiceNow from $125.00 to $118.00 and set an "outperform" rating for the company in a research report on Thursday, April 23rd. BMO Capital Markets dropped their price target on shares of ServiceNow from $120.00 to $115.00 and set an "outperform" rating on the stock in a research note on Thursday, April 23rd. Finally, Stifel Nicolaus cut their price target on ServiceNow from $135.00 to $120.00 and set a "buy" rating on the stock in a report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $142.17.

ServiceNow Stock Performance

NOW stock opened at $101.45 on Wednesday. The company has a 50-day simple moving average of $99.84 and a 200 day simple moving average of $118.90. The company has a market capitalization of $104.59 billion, a P/E ratio of 60.46, a PEG ratio of 1.72 and a beta of 0.94. 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, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting the consensus estimate of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm had revenue of $3.77 billion for the quarter, compared to analysts' expectations of $3.75 billion. During the same quarter last year, the company earned $0.81 EPS. ServiceNow's quarterly revenue was up 22.1% on a year-over-year basis. Sell-side analysts predict that ServiceNow, Inc. will post 2.35 earnings per share for the current fiscal year.

ServiceNow Profile

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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