ServiceNow, Inc. $NOW Stock Holdings Lessened by Diversify Advisory Services LLC

Key Points

• Diversify Advisory Services reduced its ServiceNow stake by 5.4% in the third quarter, selling 14,302 shares and retaining 250,888 shares valued at approximately $37.3 million. Hedge funds and institutional investors still own 87.18% of the company.
• ServiceNow reported quarterly revenue of $3.99 billion, up 24% year over year, and earnings of $0.90 per share, beating analysts’ expectations. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $152.71.
• AI-driven growth remains the primary catalyst, but investors face risks from the stock’s elevated valuation, increased short interest, weak liquidity ratios and recent insider selling totaling about $1.94 million.

Diversify Advisory Services LLC cut its stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 5.4% during the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 250,888 shares of the information technology services provider's stock after selling 14,302 shares during the period. Diversify Advisory Services LLC's holdings in ServiceNow were worth $37,274,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Bank of Nova Scotia lifted its position in shares of ServiceNow by 53.3% in the 1st quarter. Bank of Nova Scotia now owns 1,018,036 shares of the information technology services provider's stock valued at $106,436,000 after acquiring an additional 353,749 shares in the last quarter. Sapient Capital LLC boosted its stake in ServiceNow by 266.0% in the 2nd quarter. Sapient Capital LLC now owns 77,661 shares of the information technology services provider's stock worth $7,710,000 after purchasing an additional 56,444 shares during the period. Meeder Advisory Services Inc. acquired a new position in ServiceNow in the 2nd quarter worth approximately $2,881,000. Vestor Capital LLC grew its position in ServiceNow by 38,987.2% during the 1st quarter. Vestor Capital LLC now owns 122,343 shares of the information technology services provider's stock worth $12,791,000 after purchasing an additional 122,030 shares in the last quarter. Finally, Cardano Risk Management B.V. grew its position in ServiceNow by 6.9% during the 2nd quarter. Cardano Risk Management B.V. now owns 484,785 shares of the information technology services provider's stock worth $48,129,000 after purchasing an additional 31,119 shares in the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at ServiceNow

In related news, insider Paul Fipps sold 2,034 shares of the business's stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $147.87, for a total value of $300,767.58. Following the completion of the sale, the insider directly owned 18,305 shares in the company, valued at approximately $2,706,760.35. The trade was a 10.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Paul Chamberlain sold 2,700 shares of the company's stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $135.50, for a total value of $365,850.00. Following the sale, the director directly owned 43,990 shares of the company's stock, valued at $5,960,645. The trade was a 5.78% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 14,081 shares of company stock worth $1,937,904. 0.34% of the stock is owned by corporate insiders.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analyst support and upcoming earnings: BMO Capital Markets named ServiceNow a new Top Pick, while Bernstein raised its price target to $266 and Piper Sandler and TD Cowen also lifted targets. Investors are looking for evidence of continued customer upgrades and AI-driven growth in the third-quarter report expected October 28. These 2 software stocks are new Top Picks at BMO
• Positive Sentiment: AI monetization remains the central catalyst: ServiceNow is expanding zero-code AI-agent tools, governance capabilities and workflow automation across IT, human resources, customer service and other enterprise functions. Its recent quarter showed approximately 24% year-over-year revenue growth, supporting the argument that the company can convert AI demand into higher-margin software sales. ServiceNow Orchestrates AI's Next Act—Can Earnings Deliver?
• Positive Sentiment: Technical momentum is improving: A bullish flag breakout and stronger moving-average structure could support a move through $154, with one forecast identifying a potential path toward $211 if resistance is cleared. ServiceNow Price Forecast: $154 Breakout Could Extend Recovery
• Positive Sentiment: ServiceNow expanded a partnership with Simplify Alpha to develop AI-powered, payer-specific solutions for health insurers, potentially opening another vertical for workflow and automation growth. Simplify Alpha Expands Partnership with ServiceNow
• Neutral Sentiment: ServiceNow was highlighted as a favored name in CNBC’s “Final Trades,” adding visibility among retail and professional investors. CNBC's Final Trades
• Negative Sentiment: Risks include a premium valuation near 93 times trailing earnings, increased short interest, a current ratio below 1.0 and another round of San Diego sales-job cuts. These factors could limit upside if upcoming results fail to justify elevated expectations. ServiceNow cuts San Diego sales jobs

ServiceNow Trading Up 3.0%

ServiceNow stock opened at $149.70 on Wednesday. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. The company has a market capitalization of $154.79 billion, a price-to-earnings ratio of 93.56, a PEG ratio of 2.67 and a beta of 0.99. ServiceNow, Inc. has a one year low of $81.24 and a one year high of $192.97. The company's fifty day moving average price is $136.01 and its two-hundred day moving average price is $114.34.

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

Analyst Ratings Changes

NOW has been the topic of several recent analyst reports. BMO Capital Markets boosted their target price on shares of ServiceNow from $115.00 to $118.00 and gave the company an "outperform" rating in a research note on Thursday, July 23rd. Yorkville Ives initiated coverage on ServiceNow in a research report on Monday, October 5th. They issued an "outperform" rating and a $160.00 target price for the company. The Goldman Sachs Group reiterated a "buy" rating on shares of ServiceNow in a report on Monday, August 3rd. Morgan Stanley set a $180.00 price target on ServiceNow in a report on Tuesday, July 21st. Finally, CLSA initiated coverage on ServiceNow in a research report on Monday, July 20th. They set an "underperform" rating and a $72.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $152.71.

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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