ServiceNow, Inc. $NOW Shares Bought by Sustainable Growth Advisers LP

Key Points

• Sustainable Growth Advisers LP increased its ServiceNow stake by 81.8% in the fourth quarter, buying 513,436 more shares and lifting its holdings to 1,140,979 shares worth about $174.8 million.
• ServiceNow reported better-than-expected quarterly results, matching EPS estimates at $0.97 and topping revenue expectations with $3.77 billion in sales, up 22.1% year over year.
• Despite strong institutional interest, insider selling has continued, with directors and executives selling shares in recent months while analysts maintain a consensus Moderate Buy rating and a $141.85 price target.

Sustainable Growth Advisers LP boosted its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 81.8% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 1,140,979 shares of the information technology services provider's stock after acquiring an additional 513,436 shares during the period. ServiceNow comprises 1.2% of Sustainable Growth Advisers LP's portfolio, making the stock its 29th largest holding. Sustainable Growth Advisers LP owned approximately 0.11% of ServiceNow worth $174,787,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. IAG Wealth Partners LLC raised its position in shares of ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock valued at $25,000 after buying an additional 18 shares during the last quarter. Noble Wealth Management PBC raised its position in shares of 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 raised its position in shares of 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 raised its position in shares of ServiceNow by 540.0% in 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 buying an additional 135 shares during the last quarter. Finally, Blueline Advisors LLC acquired a new position in shares of ServiceNow in the fourth quarter valued at approximately $25,000. Institutional investors and hedge funds own 87.18% of the company's stock.

ServiceNow Stock Performance

Shares of NOW stock opened at $135.70 on Tuesday. ServiceNow, Inc. has a one year low of $81.24 and a one year high of $211.48. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The company has a 50 day moving average price of $98.50 and a 200 day moving average price of $123.13. The firm has a market capitalization of $139.91 billion, a price-to-earnings ratio of 80.87, a price-to-earnings-growth ratio of 2.05 and a beta of 0.94.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting 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 during the quarter, compared to analyst estimates of $3.75 billion. During the same quarter in the prior year, the business posted $0.81 earnings per share. ServiceNow's revenue for the quarter was up 22.1% compared to the same quarter last year. Sell-side analysts anticipate that ServiceNow, Inc. will post 2.36 EPS for the current year.

Insider Activity at ServiceNow

In related news, Director Anita M. Sands sold 16,445 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the transaction, the director owned 30,090 shares of the company's stock, valued at approximately $2,712,312.60. This represents a 35.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, 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 transaction of $799,859.20. Following the transaction, the insider directly owned 29,531 shares of the company's stock, valued at $2,645,977.60. This trade represents a 23.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 28,071 shares of company stock worth $2,529,956. 0.34% of the stock is currently owned by company insiders.

Key Headlines 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?

Wall Street Analysts Forecast Growth

NOW has been the subject of a number of analyst reports. FBN Securities cut their price objective on shares of ServiceNow from $160.00 to $120.00 in a research report on Thursday, April 23rd. Piper Sandler cut their price objective on shares of ServiceNow from $200.00 to $140.00 and set an "overweight" rating for the company in a research report on Thursday, April 23rd. Cantor Fitzgerald cut their price objective on shares of ServiceNow to $122.00 and set an "overweight" rating for the company in a research report on Thursday, April 23rd. Citic Securities cut their price objective on shares of ServiceNow from $168.00 to $140.00 and set a "buy" rating for the company in a research report on Thursday, May 21st. Finally, DA Davidson reissued a "buy" rating and issued a $190.00 price objective on shares of ServiceNow in a research report on Tuesday, May 5th. 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. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $141.85.

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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