ServiceNow, Inc. $NOW Shares Purchased by Varma Mutual Pension Insurance Co

Key Points

• Varma Mutual Pension Insurance boosted its ServiceNow stake by 338.7% in Q4, buying an additional 135,432 shares to hold 175,415 shares worth about $26.9 million.
• ServiceNow reported Q1 revenue of $3.77 billion and EPS of $0.97 (meeting estimates), with revenue up 22.1% YoY, and is embedding AI across its products via a new Context Engine and deepening its Google Cloud partnership to support upsells and subscription stickiness.
• Institutional buying was broad (large increases from firms like Sumitomo Mitsui and Jennison), but insiders sold about 25,164 shares last quarter and analysts have mixed views — the consensus is a Moderate Buy with a $145.87 price target amid a steep multi-month drawdown.

Varma Mutual Pension Insurance Co boosted its stake in ServiceNow, Inc. (NYSE:NOW - Free Report) by 338.7% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 175,415 shares of the information technology services provider's stock after buying an additional 135,432 shares during the period. Varma Mutual Pension Insurance Co's holdings in ServiceNow were worth $26,872,000 as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. Cohen Klingenstein LLC increased its holdings in shares of ServiceNow by 400.0% during the fourth quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider's stock valued at $1,532,000 after purchasing an additional 8,000 shares during the period. Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of ServiceNow by 385.9% during the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider's stock valued at $398,202,000 after purchasing an additional 2,064,440 shares during the period. Torray Investment Partners LLC boosted its stake in ServiceNow by 390.5% during the fourth quarter. Torray Investment Partners LLC now owns 40,629 shares of the information technology services provider's stock valued at $6,224,000 after buying an additional 32,345 shares in the last quarter. Jennison Associates LLC boosted its stake in ServiceNow by 280.1% during the fourth quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider's stock valued at $1,291,758,000 after buying an additional 6,213,762 shares in the last quarter. Finally, Narwhal Capital Management boosted its stake in ServiceNow by 763.5% during the fourth quarter. Narwhal Capital Management now owns 16,977 shares of the information technology services provider's stock valued at $2,601,000 after buying an additional 15,011 shares in the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction dated Thursday, February 12th. The stock was sold at an average price of $101.17, for a total transaction of $151,755.00. Following the completion of the sale, the director directly owned 46,430 shares in the company, valued at approximately $4,697,323.10. This trade represents a 3.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Jacqueline P. Canney sold 8,927 shares of the firm's stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the sale, the insider owned 29,531 shares of the company's stock, valued at $2,645,977.60. The trade was a 23.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 25,164 shares of company stock valued at $2,497,021. 0.34% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on NOW. The Goldman Sachs Group decreased their target price on ServiceNow from $188.00 to $163.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. Macquarie Infrastructure decreased their target price on ServiceNow from $172.00 to $140.00 and set a "neutral" rating for the company in a research note on Thursday, January 29th. BNP Paribas Exane raised ServiceNow from a "neutral" rating to an "outperform" rating and set a $140.00 target price for the company in a research note on Monday, March 16th. Needham & Company LLC decreased their target price on ServiceNow from $155.00 to $115.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. Finally, DA Davidson decreased their target price on ServiceNow from $220.00 to $190.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $145.87.

ServiceNow Trading Up 0.1%

NYSE:NOW opened at $91.23 on Monday. 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 1-year low of $81.24 and a 1-year high of $211.48. The firm has a market capitalization of $94.06 billion, a price-to-earnings ratio of 54.37, a price-to-earnings-growth ratio of 1.61 and a beta of 0.82. The stock has a fifty day simple moving average of $103.45 and a 200 day simple moving average of $134.58.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings results 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. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The business had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. During the same quarter last year, the company posted $0.81 EPS. ServiceNow's revenue for the quarter was up 22.1% on a year-over-year basis. Sell-side analysts forecast that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Sector-wide earnings strength is lifting software names, creating a tailwind for ServiceNow as investors rotate back into enterprise software on upbeat results from peers like Oracle. Oracle (ORCL) Stock Trades Up, Here Is Why
• Positive Sentiment: ServiceNow announced it’s embedding AI across its product suite via a new Context Engine, signaling tighter product-level AI integration that can support upsells and stickier subscriptions. ServiceNow embeds AI across all products with Context Engine
• Positive Sentiment: Company fundamentals: Q1 revenue of ~$3.77B and EPS roughly flat with expectations, plus a raised full‑year subscription revenue outlook and deeper Google Cloud partnership — all supportive of the investment case for long-term growth. Is ServiceNow’s Strong Q1, AI Push, and Google Cloud Tie-Up Altering The Investment Case For ServiceNow (NOW)?
• Positive Sentiment: Analyst/market narratives are turning bullish in places — some commentators argue ServiceNow’s AI strategy could let it avoid a broad “AI SaaS” disruption and make the stock attractive after its large pullback. ServiceNow Just Figured Out a Way to Beat the AI "SaaS-Pocalypse"
• Neutral Sentiment: Broad software rally (Datadog, Zoom, Braze, others) is creating market-wide momentum; this helps ServiceNow but is not a company-specific catalyst. Datadog and Zoom Shares Skyrocket, What You Need To Know
• Negative Sentiment: Investors remain wary after a steep ~60%+ drawdown and a 16% drop in April tied to margin compression and concerns that new generative-AI entrants (e.g., Anthropic’s Mythos) could disrupt SaaS pricing and margins. That lingering skepticism can cap rallies. Why ServiceNow Stock Fell 16% in April

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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