ServiceNow, Inc. $NOW Shares Purchased by Gabelli Funds LLC

Key Points

• Gabelli Funds LLC increased its stake in ServiceNow by 7.2% in the first quarter, buying 10,268 more shares and bringing its holding to 152,633 shares valued at about $15.96 million.
• ServiceNow delivered a strong earnings quarter, reporting $0.90 EPS versus $0.86 expected and revenue of $3.99 billion, up 24% year over year.
• Wall Street remains broadly constructive on the stock, with a consensus “Moderate Buy” rating and an average price target of $143.39, even as some analysts remain cautious.

Gabelli Funds LLC raised its position in ServiceNow, Inc. (NYSE:NOW - Free Report) by 7.2% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 152,633 shares of the information technology services provider's stock after buying an additional 10,268 shares during the period. Gabelli Funds LLC's holdings in ServiceNow were worth $15,958,000 at the end of the most recent quarter.

Several other large investors also recently modified their holdings of NOW. Millstone Evans Group LLC lifted its stake 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 worth $25,000 after acquiring an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC grew its stake in ServiceNow by 540.0% during the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 135 shares in the last quarter. Blueline Advisors LLC acquired a new stake in ServiceNow during the 4th quarter valued at approximately $25,000. Measured Wealth Private Client Group LLC increased its holdings in ServiceNow by 560.0% during the 4th quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 140 shares during the last quarter. Finally, Wealth Watch Advisors INC increased its holdings in ServiceNow by 432.3% during the 4th quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 134 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow Stock Performance

NOW stock opened at $98.77 on Friday. The company has a current ratio of 0.70, a quick ratio of 0.84 and a debt-to-equity ratio of 0.43. The firm has a market cap of $101.83 billion, a P/E ratio of 61.73, a P/E/G ratio of 1.65 and a beta of 0.96. ServiceNow, Inc. has a 12-month low of $81.24 and a 12-month high of $201.15. The stock's 50 day simple moving average is $104.77 and its 200 day simple moving average is $107.70.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, topping analysts' consensus estimates of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same quarter in the previous year, the company posted $0.81 earnings per share. The firm's revenue was up 24.0% on a year-over-year basis. As a group, equities research analysts predict that ServiceNow, Inc. will post 2.33 EPS for the current year.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s Q2 results showed robust growth, with revenue up about 24% year over year and subscription revenue accelerating, reinforcing that demand for its platform remains strong. Article Title
• Positive Sentiment: Management raised guidance and highlighted AI momentum, including AI contract value topping $1 billion and expanding enterprise adoption, which supports the case for continued growth. Article Title
• Positive Sentiment: Several analysts raised or reaffirmed bullish ratings and price targets after earnings, reflecting renewed confidence in ServiceNow’s outlook and valuation upside. Article Title
• Positive Sentiment: New partnerships and channel expansions, including deals with Experian, TeamViewer, and Exclusive Networks, suggest broader adoption of ServiceNow’s AI and cybersecurity offerings. Article Title
• Neutral Sentiment: Investors are also watching mixed signals from insider and institutional trading, with some large funds trimming positions even as others add shares; this appears more like portfolio rebalancing than a clear fundamental warning. Article Title
• Negative Sentiment: Despite the earnings beat, some commentary says the stock’s rally may be vulnerable if AI disruption fears return, especially around usage-based pricing and long-term software demand. Article Title

Analyst Ratings Changes

NOW has been the subject of several research analyst reports. Citizens Jmp reiterated a "market outperform" rating and set a $157.00 target price on shares of ServiceNow in a research note on Tuesday, May 5th. Bank of America began coverage on shares of ServiceNow in a research note on Monday, May 18th. They issued a "buy" rating and a $130.00 price target for the company. The Goldman Sachs Group restated a "buy" rating and issued a $145.00 price target (down from $163.00) on shares of ServiceNow in a research note on Wednesday, July 8th. KeyCorp reaffirmed an "underweight" rating on shares of ServiceNow in a report on Tuesday. Finally, Benchmark reiterated a "buy" rating on shares of ServiceNow in a research note on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $143.39.

Insider Transactions at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the business's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the completion of the sale, the director owned 44,930 shares of the company's stock, valued at $3,919,243.90. This represents a 3.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of the stock in a transaction dated 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 in the company, valued at approximately $1,189,212.72. This trade represents a 7.99% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 19,144 shares of company stock worth $1,730,097. 0.34% of the stock is currently owned by insiders.

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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