ServiceNow, Inc. $NOW Stock Holdings Lowered by Foster Victor Wealth Advisors LLC

Key Points

• Foster Victor Wealth Advisors cut its ServiceNow stake by 10.8% in the third quarter, selling 10,227 shares and retaining 84,632 shares valued at approximately $12.3 million. Institutional investors collectively own 87.18% of ServiceNow.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $153.90, although Zacks Research downgraded the stock to “strong sell.” ServiceNow is preparing to report earnings on October 28.
• ServiceNow’s latest quarter showed 24% year-over-year revenue growth to $3.99 billion and an EPS beat, while AI momentum—including more than $1 billion in AI-related contract value and a partnership with NVIDIA—supports optimism but leaves the highly valued stock vulnerable if growth or cash flow disappoints.

Foster Victor Wealth Advisors LLC lowered its position in ServiceNow, Inc. (NYSE:NOW - Free Report) by 10.8% in the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 84,632 shares of the information technology services provider's stock after selling 10,227 shares during the period. Foster Victor Wealth Advisors LLC's holdings in ServiceNow were worth $12,302,000 as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in NOW. Cornerstone Financial Management LLC lifted 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 acquiring an additional 107 shares in the last quarter. CrossGen Wealth LLC bought a new stake in shares of ServiceNow in the first quarter worth about $29,000. Caitong International Asset Management Co. Ltd increased its holdings in shares of ServiceNow by 4,157.1% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 298 shares of the information technology services provider's stock worth $46,000 after acquiring an additional 291 shares in the last quarter. Marquette Asset Management LLC raised its position in shares of ServiceNow by 75.0% during the second quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider's stock worth $30,000 after purchasing an additional 129 shares during the period. Finally, Kilter Group LLC acquired a new stake in shares of ServiceNow during the second quarter worth about $31,000. Institutional investors and hedge funds own 87.18% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on NOW. Morgan Stanley set a $180.00 price objective on ServiceNow in a report on Tuesday, July 21st. Piper Sandler increased their target price on ServiceNow from $140.00 to $175.00 and gave the stock an "overweight" rating in a research note on Friday, October 16th. CLSA initiated coverage on shares of ServiceNow in a report on Monday, July 20th. They set an "underperform" rating and a $72.00 target price on the stock. Zacks Research downgraded shares of ServiceNow from a "hold" rating to a "strong sell" rating in a report on Monday. Finally, Oppenheimer reaffirmed an "outperform" rating and issued a $165.00 price target (up from $140.00) on shares of ServiceNow in a research note on Tuesday, October 13th. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $153.90.

Insider Transactions at ServiceNow

In related news, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $135.50, for a total transaction of $365,850.00. Following the completion of the transaction, the director directly 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Paul Fipps sold 2,034 shares of the stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $147.87, for a total value of $300,767.58. Following the transaction, the insider owned 18,305 shares of the company's stock, valued at approximately $2,706,760.35. The trade was a 10.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 14,081 shares of company stock valued at $1,937,904 over the last three months. Company insiders own 0.34% of the company's stock.

ServiceNow News Summary

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 Price Performance

NOW stock opened at $153.08 on Thursday. The stock has a 50-day moving average price of $136.57 and a two-hundred day moving average price of $114.70. ServiceNow, Inc. has a 1 year low of $81.24 and a 1 year high of $192.97. The stock has a market cap of $158.29 billion, a PE ratio of 95.68, a price-to-earnings-growth ratio of 2.75 and a beta of 0.99. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43.

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

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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