ServiceNow, Inc. $NOW Stake Decreased by Lyell Wealth Management LP

Key Points

• Lyell Wealth Management cut its ServiceNow stake by 17.1% in the third quarter, selling 15,678 shares and retaining 76,131 shares valued at about $10.2 million. Institutional investors collectively own 87.18% of the stock.
• ServiceNow’s third-quarter revenue rose 20.5% year over year to $4.11 billion, slightly beating estimates, while earnings per share of $1.00 missed expectations. Investors are weighing growth against higher AI spending, margin pressure and weaker backlog guidance.
• Analyst sentiment remains broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $154.50, though ratings include both holds and sells.

Lyell Wealth Management LP lowered its stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 17.1% during the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 76,131 shares of the information technology services provider's stock after selling 15,678 shares during the quarter. Lyell Wealth Management LP's holdings in ServiceNow were worth $10,202,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in the stock. Cornerstone Financial Management LLC grew its position in ServiceNow by 72.8% in the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 107 shares in the last quarter. Marquette Asset Management LLC raised its position in ServiceNow by 75.0% during the second quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider's stock valued at $30,000 after purchasing an additional 129 shares in the last quarter. Kilter Group LLC purchased a new stake in ServiceNow during the second quarter valued at about $31,000. Solstein Capital LLC bought a new position in shares of ServiceNow during the 2nd quarter valued at about $35,000. Finally, Main Street Group LTD purchased a new stake in ServiceNow in the first quarter worth approximately $40,000. 87.18% of the stock is owned by institutional investors.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Argus reaffirmed its Buy rating and set a $170 price target, signaling confidence in ServiceNow’s recovery potential after the recent selloff. Argus rating and price target
• Positive Sentiment: ServiceNow’s enterprise AI push—including its Control Tower Alliance with major technology partners—could strengthen its role in helping companies deploy and govern AI. ServiceNow rolls out Control Tower Alliance
• Positive Sentiment: Recent commentary argues that the selloff may offer a buying opportunity, citing ServiceNow’s growth prospects and demand for AI-driven workflow tools. ServiceNow Stock: Buy the Dip?
• Neutral Sentiment: Q3 revenue was about $4.1 billion, slightly ahead of estimates, but the company is increasing AI-related investment and shifting toward outcome-based pricing—changes that could affect how growth and profitability develop. How Higher AI Spending Will Impact ServiceNow Stock
• Negative Sentiment: The sharp recent decline followed weaker fourth-quarter backlog guidance, which revived fears that AI could disrupt seat-based software models and weigh on future growth. ServiceNow’s selloff and Wall Street price-target cuts
• Negative Sentiment: Management’s AI investments and business-model changes pressured operating margins, adding to investor concerns despite revenue growth. Analyst questions from ServiceNow’s Q3 earnings call

Insider Transactions at ServiceNow

In other news, Director Paul Chamberlain sold 2,700 shares of the firm's stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the transaction, the director owned 43,990 shares in the company, valued at approximately $5,960,645. This trade represents a 5.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jacqueline Canney sold 7,847 shares of ServiceNow stock in a transaction on Friday, August 28th. The stock was sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the completion of the transaction, the insider directly owned 30,042 shares in the company, valued at approximately $4,145,796. The trade was a 20.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 14,081 shares of company stock worth $1,937,904. Insiders own 0.34% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Truist Financial set a $150.00 price target on shares of ServiceNow and gave the stock a "buy" rating in a research note on Thursday, October 29th. Cantor Fitzgerald upped their price objective on shares of ServiceNow from $174.00 to $201.00 and gave the company an "overweight" rating in a research note on Monday, October 26th. Bank of America increased their target price on shares of ServiceNow from $130.00 to $150.00 and gave the company a "buy" rating in a report on Wednesday, August 19th. Needham & Company LLC lifted their target price on shares of ServiceNow from $115.00 to $155.00 and gave the stock a "buy" rating in a research report on Friday, September 11th. Finally, Royal Bank Of Canada set a $165.00 target price on shares of ServiceNow and gave the stock an "outperform" rating in a research report on Thursday, October 29th. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, ServiceNow currently has a consensus rating of "Moderate Buy" and an average target price of $154.50.

ServiceNow Price Performance

NOW opened at $109.09 on Wednesday. The stock's 50 day simple moving average is $137.87 and its 200 day simple moving average is $115.16. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.72 and a quick ratio of 0.72. ServiceNow, Inc. has a 1 year low of $81.24 and a 1 year high of $181.73. The firm has a market cap of $113.24 billion, a price-to-earnings ratio of 78.48, a PEG ratio of 2.03 and a beta of 1.00.

ServiceNow (NYSE:NOW - Get Free Report) last announced 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 net margin of 9.36% and a return on equity of 15.17%. The company had revenue of $4.11 billion during the quarter, compared to the consensus estimate of $4.09 billion. During the same quarter in the previous year, the firm posted $4.82 EPS. The business's revenue for the quarter was up 20.5% compared to the same quarter last year. As a group, analysts predict that ServiceNow, Inc. will post 2.13 earnings per share for the current year.

ServiceNow 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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