ServiceNow, Inc. $NOW Stock Acquired by Lmcg Investments LLC

Key Points

• Lmcg Investments LLC increased its ServiceNow stake by 916.3% in the third quarter, acquiring 45,834 additional shares for a total holding worth approximately $6.8 million. Institutional investors collectively own 87.18% of the company.
• Wall Street remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $153.90, although analyst views range from a $72 “Underperform” target to a $266 “Outperform” target.
• ServiceNow reported 24% year-over-year revenue growth to $3.99 billion in its latest quarter and beat earnings estimates, while its AI contract value reportedly surpassed $1 billion. However, the stock’s roughly 96 price-to-earnings ratio and concerns about cash flow and high expectations create downside risks.

Lmcg Investments LLC grew its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 916.3% during the third quarter, according to the company in its most recent filing with the SEC. The fund owned 50,836 shares of the information technology services provider's stock after acquiring an additional 45,834 shares during the quarter. Lmcg Investments LLC's holdings in ServiceNow were worth $6,813,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Cornerstone Financial Management LLC raised its holdings in ServiceNow by 72.8% during the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 107 shares in the last quarter. CrossGen Wealth LLC purchased a new position in shares of ServiceNow in the 1st quarter valued at $29,000. Caitong International Asset Management Co. Ltd grew its position in shares of ServiceNow by 4,157.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 298 shares of the information technology services provider's stock valued at $46,000 after buying an additional 291 shares during the last quarter. Marquette Asset Management LLC grew its position in shares of ServiceNow by 75.0% in the 2nd quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider's stock valued at $30,000 after buying an additional 129 shares during the last quarter. Finally, Kilter Group LLC acquired a new position in ServiceNow in the second quarter valued at $31,000. Institutional investors and hedge funds own 87.18% of the company's stock.

Insider Buying and Selling

In other ServiceNow news, Director Paul Chamberlain sold 2,700 shares of ServiceNow stock in a transaction 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 $5,960,645. This trade represents a 5.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Jacqueline P. Canney sold 7,847 shares of the business's stock in a transaction on Friday, August 28th. The shares were sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the sale, the insider directly owned 30,042 shares of the company's stock, valued at $4,145,796. This 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. Over the last quarter, insiders sold 14,081 shares of company stock valued at $1,937,904. Insiders own 0.34% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have issued reports on NOW. DA Davidson set a $170.00 price objective on ServiceNow and gave the stock a "buy" rating in a report on Monday, July 20th. CLSA started coverage on ServiceNow in a report on Monday, July 20th. They issued an "underperform" rating and a $72.00 target price for the company. TD Cowen upped their target price on ServiceNow from $140.00 to $165.00 and gave the company a "buy" rating in a research report on Thursday, October 15th. Stifel Nicolaus set a $160.00 target price on ServiceNow and gave the company a "buy" rating in a research report on Tuesday, October 6th. Finally, Sanford C. Bernstein restated an "outperform" rating and set a $266.00 price target on shares of ServiceNow in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $153.90.

ServiceNow Stock Up 2.4%

NOW stock opened at $153.08 on Thursday. The firm has a market capitalization of $158.29 billion, a PE ratio of 95.68, a P/E/G ratio of 2.75 and a beta of 0.99. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. ServiceNow, Inc. has a 12 month low of $81.24 and a 12 month high of $192.97. The company's 50 day simple moving average is $136.57 and its 200-day simple moving average is $114.70.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The business had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same period in the prior year, the firm posted $0.81 EPS. The company's revenue was up 24.0% on a year-over-year basis. Equities analysts expect that ServiceNow, Inc. will post 2.22 earnings per share for the current fiscal year.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow and NVIDIA launched Arc, an AI agent designed for enterprise and Mac workflows. The partnership strengthens ServiceNow’s position in AI orchestration and could support adoption of its platform across corporate environments. ServiceNow and Nvidia launch Arc, a new AI agent for enterprise
• Positive Sentiment: ServiceNow’s AI-related contract value has reportedly surpassed $1 billion, reinforcing the view that its AI products are moving from experimentation toward meaningful monetization. The stock has rallied sharply over the past three months as investors anticipate further enterprise demand. ServiceNow Rallies 43% in Three Months as AI Contract Value Tops $1 Billion
• Positive Sentiment: Analysts have raised price targets ahead of ServiceNow’s October 28 earnings report. Bernstein set a Street-high $266 target, while Piper Sandler and TD Cowen also increased targets, citing AI-driven workflow tools, customer upgrades and federal demand. ServiceNow Orchestrates AI's Next Act—Can Earnings Deliver?
• Neutral Sentiment: Investors are focused on the upcoming quarterly report. ServiceNow’s latest quarter showed 24% revenue growth to approximately $3.99 billion and an earnings beat, but some forecasts call for a single-digit earnings decline in the next report, raising the bar for continued upside. ServiceNow's Quarterly Earnings Preview
• Negative Sentiment: Zacks Research downgraded ServiceNow from “hold” to “strong sell,” adding pressure ahead of earnings. The downgrade reflects concerns that expectations may already discount much of the AI opportunity.
• Negative Sentiment: ServiceNow may need stronger cash flow to finance its AI expansion. With a roughly 96 price-to-earnings ratio and current and quick ratios near 0.70, the stock remains vulnerable if AI investments do not translate into accelerating profits and cash generation. ServiceNow Needs Stronger Cash Flow to Support Its AI Expansion

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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