ServiceNow, Inc. $NOW Stock: Hyperion Asset Management Ltd Trims Position

Key Points

• Hyperion Asset Management cut its ServiceNow position by 14.8% in the third quarter, selling 40,694 shares and retaining 234,252 shares valued at approximately $31.4 million. Institutional investors still own 87.18% of the company.
• Analyst sentiment remains broadly positive, with 36 Buy ratings and an average price target of $152.71, while recent firms raised targets and reiterated bullish views tied to ServiceNow’s AI growth and enterprise workflow platform.
• ServiceNow shares rose 2.8% to $149.38, and the company reported quarterly revenue growth of 24% year over year while exceeding analysts’ earnings and revenue estimates. However, recent sales layoffs and concerns about sustaining growth at its valuation create mixed signals for investors.

Hyperion Asset Management Ltd trimmed its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 14.8% during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 234,252 shares of the information technology services provider's stock after selling 40,694 shares during the period. ServiceNow accounts for approximately 0.9% of Hyperion Asset Management Ltd's holdings, making the stock its 20th largest holding. Hyperion Asset Management Ltd's holdings in ServiceNow were worth $31,392,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Cornerstone Financial Management LLC lifted its holdings in shares of ServiceNow by 72.8% during the 2nd 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 during the period. CrossGen Wealth LLC acquired a new position in ServiceNow during the first quarter worth approximately $29,000. Marquette Asset Management LLC increased 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 worth $30,000 after purchasing an additional 129 shares during the last quarter. Kilter Group LLC purchased a new position in ServiceNow during the second quarter worth approximately $31,000. Finally, Solstein Capital LLC purchased a new position in ServiceNow during the second quarter worth approximately $35,000. Hedge funds and other institutional investors own 87.18% of the company's stock.

Analyst Ratings Changes

NOW has been the topic of a number of research analyst reports. Benchmark reiterated a "buy" rating on shares of ServiceNow in a report on Friday, July 17th. Argus upped their price objective on ServiceNow from $134.00 to $170.00 and gave the stock a "buy" rating in a report on Wednesday, October 7th. UBS Group set a $165.00 target price on ServiceNow in a research report on Monday. Sanford C. Bernstein reiterated an "outperform" rating and issued a $266.00 target price on shares of ServiceNow in a report on Tuesday. Finally, TD Cowen boosted their price target on ServiceNow from $140.00 to $165.00 and gave the company a "buy" rating in a research report on Thursday, October 15th. One investment 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 issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $152.71.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analyst upgrades and buy recommendations: BMO Capital Markets named ServiceNow a new Top Pick, while a separate Wall Street analysis argued the stock could have as much as 70% upside because the company’s AI business has reached an important milestone. ServiceNow was also selected on CNBC’s “Final Trades.” These 2 software stocks are new Top Picks at BMO ServiceNow Fell 20% Over a Year But This Wall Street Analyst Predicts 70% Gains From Here
• Positive Sentiment: AI and sticky-demand positioning: ServiceNow is viewed as a beneficiary of enterprise AI adoption rather than a company threatened by it. Analysts cited the difficulty of replacing its workflow platform and expect upcoming earnings reports to show greater AI monetization. 4 Stocks With Demand So Sticky That the AI Sell-Off Barely Touched Them at All
• Positive Sentiment: Expanded healthcare partnership: Simplify Alpha is expanding its partnership with ServiceNow to develop payer-specific AI and workflow solutions for health plans. The deal could broaden ServiceNow’s use cases in claims and other healthcare operations. Simplify Alpha Expands Partnership with ServiceNow to Build Payer-Specific Solutions
• Neutral Sentiment: Growth sustainability remains a question: ServiceNow has outperformed significantly, but investors are debating whether it can maintain strong growth at its current scale and valuation. A comparison with Workday showed ServiceNow leading in revenue growth across recent quarters, offering support for the bullish case while highlighting elevated expectations. Can ServiceNow Keep Growing at This Size?
• Negative Sentiment: Layoffs create a mixed signal: ServiceNow reportedly cut additional sales jobs in San Diego, marking the company’s third round of layoffs there this year. The reductions could improve efficiency, but may also raise concerns about sales execution and near-term growth momentum.

ServiceNow Stock Up 2.8%

NYSE:NOW traded up $4.02 during trading hours on Tuesday, hitting $149.38. The stock had a trading volume of 5,601,187 shares, compared to its average volume of 21,455,578. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $192.97. The company has a market cap of $154.46 billion, a PE ratio of 93.36, a price-to-earnings-growth ratio of 2.61 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. The business has a 50 day simple moving average of $135.56 and a two-hundred day simple moving average of $114.01.

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

Insider Activity at ServiceNow

In other ServiceNow news, insider Jacqueline P. Canney sold 7,847 shares of the stock in a transaction that occurred 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 transaction, the insider owned 30,042 shares of the company's stock, valued at $4,145,796. This trade represents a 20.71% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of ServiceNow stock in a transaction on 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 of the company's stock, valued at approximately $5,960,645. This represents a 5.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 14,081 shares of company stock valued at $1,937,904 over the last ninety days. Corporate insiders own 0.34% of the company's stock.

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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