ServiceNow, Inc. $NOW Shares Purchased by D.A. Davidson & CO.

Key Points

• D.A. Davidson increased its ServiceNow stake by 2.3% in the third quarter, adding 7,445 shares to own 334,709 shares valued at approximately $44.9 million. Institutional investors collectively own 87.18% of the company.
• ServiceNow’s third-quarter revenue rose 20.5% year over year to $4.11 billion, exceeding estimates, while subscription revenue grew 21%. However, adjusted EPS of $1.00 missed expectations and acquisition costs ended a six-quarter streak of earnings beats.
• The company continues to emphasize enterprise AI through an expanded OpenAI partnership and a five-year HPE agreement, but its weaker-than-expected fourth-quarter revenue outlook and elevated valuation remain concerns for investors.

D.A. Davidson & CO. grew its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 2.3% in the third quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 334,709 shares of the information technology services provider's stock after buying an additional 7,445 shares during the quarter. D.A. Davidson & CO.'s holdings in ServiceNow were worth $44,854,000 as of its most recent filing with the SEC.

Other hedge funds also recently made changes to their positions in the company. Cornerstone Financial Management LLC boosted its position in shares of ServiceNow by 72.8% during the 2nd quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider's stock valued at $25,000 after acquiring an additional 107 shares in the last quarter. Marquette Asset Management LLC increased its stake in ServiceNow by 75.0% in the second quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider's stock valued at $30,000 after acquiring an additional 129 shares during the period. Kilter Group LLC bought a new stake in ServiceNow in the second quarter valued at about $31,000. Solstein Capital LLC acquired a new position in ServiceNow in the second quarter worth about $35,000. Finally, Main Street Group LTD acquired a new position in ServiceNow in the first quarter worth about $40,000. Institutional investors and hedge funds own 87.18% of the company's stock.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow reported third-quarter revenue of $4.11 billion, up 20.5% year over year and above the $4.09 billion analyst estimate. Subscription revenue reached $3.988 billion, representing 21% growth. ServiceNow Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Management highlighted continued momentum in enterprise AI, including an expanded partnership with OpenAI to connect AI reasoning with governed business workflows and cybersecurity applications. ServiceNow and OpenAI partnership
• Positive Sentiment: HPE selected ServiceNow for a five-year agreement to support its Cloud & AI business, while ServiceNow also launched a Control Tower Alliance with major technology and security partners. These developments could support longer-term AI adoption and recurring revenue. HPE selects ServiceNow
• Neutral Sentiment: ServiceNow’s AI growth outlook remains a key long-term strength, but investors are scrutinizing whether accelerating AI bookings and multi-million-dollar deals can justify the company’s elevated valuation and sustain its recent share-price gains. ServiceNow AI outlook
• Negative Sentiment: Adjusted earnings were $1.00 per share, below the $1.02 consensus estimate and only modestly above $0.96 a year earlier. Acquisition-related costs ended a six-quarter streak of earnings beats, raising concerns about near-term profitability. ServiceNow Q3 earnings miss
• Negative Sentiment: The company’s fourth-quarter revenue outlook came in below Wall Street expectations. That guidance disappointed investors despite the revenue beat and helped drive the sharp decline in ServiceNow shares following the report. ServiceNow weak Q4 outlook

ServiceNow Price Performance

Shares of ServiceNow stock opened at $149.55 on Thursday. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. The stock has a market capitalization of $154.63 billion, a price-to-earnings ratio of 93.47, a P/E/G ratio of 2.92 and a beta of 0.99. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $192.97. The firm's 50-day moving average price is $139.55 and its two-hundred day moving average price is $115.79.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share for the quarter, missing the consensus estimate of $1.02 by ($0.02). ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The firm had revenue of $4.11 billion for the quarter, compared to analyst estimates of $4.09 billion. During the same period in the previous year, the business posted $4.82 EPS. The business's quarterly revenue was up 20.5% on a year-over-year basis. On average, equities analysts predict that ServiceNow, Inc. will post 2.23 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on NOW. Bank of America raised their price target on shares of ServiceNow from $130.00 to $150.00 and gave the stock a "buy" rating in a research note on Wednesday, August 19th. Stifel Nicolaus set a $160.00 price objective on ServiceNow and gave the company a "buy" rating in a research note on Tuesday, October 6th. Jefferies Financial Group reissued a "buy" rating on shares of ServiceNow in a report on Tuesday, October 13th. Guggenheim restated a "buy" rating and set a $175.00 target price (up from $125.00) on shares of ServiceNow in a research report on Friday, October 23rd. Finally, Zacks Research lowered ServiceNow from a "hold" rating to a "strong sell" rating in a research note on Monday, October 19th. One research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $155.74.

Insider Transactions at ServiceNow

In related news, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $135.50, for a total transaction of $365,850.00. Following the sale, the director directly owned 43,990 shares in the company, valued at $5,960,645. This represents a 5.78% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jacqueline Canney sold 7,847 shares of the stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $138.00, for a total value of $1,082,886.00. Following the sale, the insider owned 30,042 shares in the company, valued at approximately $4,145,796. This trade represents a 20.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,081 shares of company stock valued at $1,937,904 in the last three months. 0.34% of the stock is owned by corporate insiders.

ServiceNow Company Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company's products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.

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