ServiceNow, Inc. $NOW Shares Sold by Avestar Capital LLC

Key Points

• Avestar Capital cut its ServiceNow position by 94.4% in the third quarter, selling 112,662 shares and retaining 6,685 shares valued at approximately $896,000.
• Institutional investors own 87.18% of ServiceNow, while insiders have sold 14,081 shares worth about $1.94 million over the past 90 days.
• ServiceNow reported 20.5% year-over-year revenue growth but narrowly missed earnings expectations, contributing to investor concerns about slowing backlog growth. Analysts remain broadly positive, with a “Moderate Buy” consensus rating and an average price target of $154.50.

Avestar Capital LLC decreased its position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 94.4% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 6,685 shares of the information technology services provider's stock after selling 112,662 shares during the period. Avestar Capital LLC's holdings in ServiceNow were worth $896,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently modified their holdings of the company. BlackRock Inc. acquired a new position in shares of ServiceNow during the 2nd quarter worth $9,536,615,000. Bank of New York Mellon Corp acquired a new stake in ServiceNow in the second quarter valued at $712,573,000. Legal & General Group Plc acquired a new stake in shares of ServiceNow in the second quarter valued at about $641,888,000. Bank of America Corp DE acquired a new stake in ServiceNow during the 2nd quarter valued at approximately $627,355,000. Finally, Deutsche Bank AG bought a new stake in shares of ServiceNow in the 2nd quarter valued at $595,157,000. Institutional investors and hedge funds own 87.18% of the company's stock.

Insider Buying and Selling

In related news, insider Jacqueline Canney sold 7,847 shares of ServiceNow stock in a transaction on Friday, August 28th. The shares were sold at an average price of $138.00, for a total value of $1,082,886.00. Following the completion of the sale, the insider owned 30,042 shares of the company's stock, valued at approximately $4,145,796. This trade represents a 20.71% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the business's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the sale, the insider owned 18,305 shares of the company's stock, valued at $2,706,760.35. This trade represents a 10.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 14,081 shares of company stock worth $1,937,904 in the last ninety days. Corporate insiders own 0.34% of the company's stock.

Analysts Set New Price Targets

A number of brokerages recently weighed in on NOW. Robert W. Baird set a $185.00 target price on shares of ServiceNow in a research note on Thursday. Weiss Ratings lowered ServiceNow from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday. Morgan Stanley reissued an "overweight" rating and issued a $160.00 price objective on shares of ServiceNow in a research note on Thursday. Jefferies Financial Group set a $145.00 target price on ServiceNow in a research report on Thursday. Finally, Benchmark reaffirmed a "buy" rating on shares of ServiceNow in a research note on Friday, July 17th. One investment 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 given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $154.50.

ServiceNow Price Performance

Shares of NYSE NOW opened at $105.12 on Friday. The firm's 50-day moving average price is $138.71 and its 200-day moving average price is $115.45. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $189.53. The firm has a market capitalization of $109.11 billion, a P/E ratio of 75.63, a P/E/G ratio of 1.94 and a beta of 0.99. The company has a current ratio of 0.72, a quick ratio of 0.70 and a debt-to-equity ratio of 0.42.

ServiceNow (NYSE:NOW - Get Free Report) last issued its earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 EPS for the quarter, missing analysts' consensus estimates of $1.02 by ($0.02). ServiceNow had a net margin of 9.36% and a return on equity of 15.17%. The firm had revenue of $4.11 billion during the quarter, compared to the consensus estimate of $4.09 billion. During the same period in the previous year, the firm earned $4.82 earnings per share. The business's quarterly revenue was up 20.5% on a year-over-year basis. Equities research analysts anticipate that ServiceNow, Inc. will post 2.14 earnings per share for the current fiscal year.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow reported 20.5% year-over-year revenue growth, supported by subscription demand, and raised its 2026 artificial-intelligence contract target to $1.7 billion. Management and bullish analysts argue that AI adoption could accelerate growth in 2027. ServiceNow: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts continue to rate NOW Buy or Overweight despite reducing their price targets. JPMorgan, Piper Sandler, Wells Fargo and Oppenheimer still see substantial long-term upside, suggesting the sell-off may have been excessive. ServiceNow stock is on track for its largest drop on record
• Positive Sentiment: A new partnership with BDO Canada will help organizations govern AI and automate operations using ServiceNow’s platform, providing potential support for future enterprise demand. BDO Canada partners with ServiceNow
• Neutral Sentiment: ServiceNow’s CEO has defended the company’s valuation and long-term opportunity, while a reported $3 million insider stock purchase may signal management confidence. However, such commentary has not offset investor concerns about guidance. ServiceNow CEO makes striking unicorn claim
• Negative Sentiment: The primary catalyst for the sell-off was management’s forecast for slower fourth-quarter current remaining performance obligation growth—about 18.5%, below the approximately 21.5% revenue-growth outlook. Because cRPO represents contracted future revenue, investors viewed the gap as a warning that demand may be weakening. ServiceNow Guides to Slower Backlog Growth
• Negative Sentiment: Third-quarter adjusted earnings of $1.00 per share fell short of the $1.02 consensus estimate. The miss, combined with concerns that AI could disrupt traditional software pricing and demand, overshadowed the revenue beat and higher AI target. ServiceNow shares plunge after earnings
• Negative Sentiment: Investors are also monitoring ServiceNow’s roughly $7.5 billion debt load and rising interest costs, while a shareholder investigation into potential securities-law violations adds reputational and legal uncertainty. ServiceNow’s Debt and Interest Costs Jump

About ServiceNow

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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