ServiceNow, Inc. $NOW Stock Holdings Lifted by HB Wealth Management LLC

Key Points

• HB Wealth Management increased its stake in ServiceNow by 463.2% in Q4 to 58,870 shares (about $9.02M), and several other institutions also sharply raised positions, leaving institutional ownership at roughly 87.18%.
• ServiceNow shares plunged 17.7% (opened at $84.85) after results: revenue beat and a raised subscription outlook were offset by warnings that the Armis acquisition and delayed large deals (Middle East) will pressure margins, triggering analyst price‑target cuts and a sector selloff.
• Insiders have been net sellers recently, disposing of 16,237 shares worth about $1.70M in the last 90 days, while insiders still own just 0.34% of the company.

HB Wealth Management LLC lifted its position in ServiceNow, Inc. (NYSE:NOW - Free Report) by 463.2% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 58,870 shares of the information technology services provider's stock after acquiring an additional 48,418 shares during the period. HB Wealth Management LLC's holdings in ServiceNow were worth $9,018,000 as of its most recent SEC filing.

Several other institutional investors have also made changes to their positions in the stock. Davidson Capital Management Inc. boosted its holdings in shares of ServiceNow by 413.7% during the fourth quarter. Davidson Capital Management Inc. now owns 18,104 shares of the information technology services provider's stock worth $2,773,000 after purchasing an additional 14,580 shares during the period. United Asset Strategies Inc. lifted its stake in ServiceNow by 409.1% in the fourth quarter. United Asset Strategies Inc. now owns 117,572 shares of the information technology services provider's stock valued at $18,011,000 after acquiring an additional 94,478 shares during the last quarter. Financial Perspectives Inc raised its position in shares of ServiceNow by 400.0% in the fourth quarter. Financial Perspectives Inc now owns 2,725 shares of the information technology services provider's stock valued at $417,000 after purchasing an additional 2,180 shares during the period. Caprock Group LLC raised its position in shares of ServiceNow by 413.2% in the fourth quarter. Caprock Group LLC now owns 25,200 shares of the information technology services provider's stock valued at $3,860,000 after purchasing an additional 20,290 shares during the period. Finally, Boston Trust Walden Corp raised its position in shares of ServiceNow by 392.1% in the fourth quarter. Boston Trust Walden Corp now owns 3,755 shares of the information technology services provider's stock valued at $575,000 after purchasing an additional 2,992 shares during the period. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow Trading Down 17.7%

Shares of ServiceNow stock opened at $84.85 on Friday. The firm has a market capitalization of $87.92 billion, a PE ratio of 50.57, a price-to-earnings-growth ratio of 1.73 and a beta of 1.01. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.00. The company's fifty day moving average price is $105.18 and its two-hundred day moving average price is $138.45. ServiceNow, Inc. has a 52-week low of $81.24 and a 52-week high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last issued its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting the consensus estimate of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The company had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. During the same quarter in the previous year, the company earned $0.81 EPS. The firm's revenue for the quarter was up 22.1% compared to the same quarter last year. On average, analysts expect that ServiceNow, Inc. will post 2.49 EPS for the current year.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. JPMorgan Chase & Co. dropped their price target on shares of ServiceNow from $195.00 to $145.00 and set an "overweight" rating on the stock in a research report on Thursday. Capital One Financial dropped their price target on shares of ServiceNow from $158.00 to $113.00 and set an "overweight" rating on the stock in a research report on Thursday, April 16th. BMO Capital Markets dropped their target price on shares of ServiceNow from $120.00 to $115.00 and set an "outperform" rating on the stock in a research report on Thursday. Citizens Jmp dropped their target price on shares of ServiceNow from $260.00 to $157.00 and set a "market outperform" rating on the stock in a research report on Thursday. Finally, UBS Group set a $150.00 target price on shares of ServiceNow in a research report on Thursday. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $147.68.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 revenue beat and company raised its annual subscription-revenue outlook, with management citing strong adoption of ServiceNow’s AI products as a growth driver. Earnings Beat & Raise
• Positive Sentiment: Strategic momentum: deeper Google Cloud partnership and CEO comments emphasize AI-led product traction that could drive recurring revenue and long-term monetization. Google Cloud Partnership
• Neutral Sentiment: Armis acquisition completed (adds cyber‑exposure capability), a strategic tuck‑in that expands the product set but increases near‑term integration/expense complexity. Armis Acquisition
• Negative Sentiment: Management warned the Armis deal and acquisition-related costs will weigh on margins (roughly +75 bps FY headwind; ~125 bps in Q2), spooking investors focused on near‑term profitability. Margin Headwind
• Negative Sentiment: Geopolitical impact: ServiceNow cited delayed large deals in the Middle East (Iran conflict) that trimmed subscription growth this quarter — investors treated the disruption as a material near‑term revenue risk. Deal Delays from Iran War
• Negative Sentiment: Wall Street reaction: multiple firms cut price targets and some trimmed forecasts after the call; that wave of downgrades magnified selling pressure. Analyst Price‑Target Cuts
• Negative Sentiment: Sector contagion and positioning: ServiceNow’s miss‑/guidance mix reignited AI-disruption fears across software names, triggering a broad selloff and higher short interest that increased volatility. Sector Selloff

Insider Buying and Selling

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the business'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 of the company's stock, valued at approximately $4,697,323.10. The trade was a 3.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the business's stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $105.71, for a total value of $147,994.00. Following the sale, the insider directly owned 26,314 shares of the company's stock, valued at $2,781,652.94. This represents a 5.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 16,237 shares of company stock worth $1,697,162 in the last 90 days. Corporate insiders own 0.34% of the company's stock.

ServiceNow Company Profile

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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