ServiceNow, Inc. $NOW Stock Purchased by Commonwealth Equity Services LLC

Key Points

• Commonwealth Equity Services increased its ServiceNow stake by 7.4% in the third quarter, adding 26,091 shares to reach 379,123 shares valued at about $50.8 million. Institutional investors own 87.18% of the company.
• ServiceNow’s latest quarter brought mixed results: revenue of $4.11 billion topped expectations and rose 20.5% year over year, while EPS of $1.00 narrowly missed consensus. Its 18.5% forecast for fourth-quarter current remaining performance obligations growth raised concerns about slowing backlog growth.
• The company is promoting AI as a growth opportunity, expanding enterprise partnerships and raising its AI contract-value target to $1.7 billion. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $154.50.

Commonwealth Equity Services LLC grew its position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 7.4% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 379,123 shares of the information technology services provider's stock after buying an additional 26,091 shares during the quarter. Commonwealth Equity Services LLC's holdings in ServiceNow were worth $50,806,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently modified their holdings of the company. Bank of Nova Scotia raised its stake in ServiceNow by 53.3% during the 1st quarter. Bank of Nova Scotia now owns 1,018,036 shares of the information technology services provider's stock worth $106,436,000 after acquiring an additional 353,749 shares during the period. Sapient Capital LLC lifted its holdings in ServiceNow by 266.0% during the second quarter. Sapient Capital LLC now owns 77,661 shares of the information technology services provider's stock valued at $7,710,000 after purchasing an additional 56,444 shares in the last quarter. Meeder Advisory Services Inc. purchased a new position in ServiceNow during the second quarter valued at approximately $2,881,000. Vestor Capital LLC boosted its position in shares of ServiceNow by 38,987.2% in the first 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 during the period. Finally, Cardano Risk Management B.V. boosted its position in shares of ServiceNow by 6.9% in the second 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 during the period. Institutional investors own 87.18% of the company's stock.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is broadening its agentic-AI partnership with LTM, aiming to take AI workflows to more enterprise customers. The company also highlighted deployments and selections by customers including LTM, KORE and Keysight, supporting its case that businesses are adopting its AI platform. ServiceNow expands enterprise AI partnerships
• Positive Sentiment: ServiceNow raised its AI contract-value target to $1.7 billion, and its CFO described fears that AI will disrupt the company’s business as unfounded. These points may help reassure investors about AI’s potential as a growth driver. ServiceNow Q3 earnings call highlights
• Neutral Sentiment: The NBA extended its partnership with ServiceNow, adopting EmployeeWorks for employee self-service and workplace requests. The deal adds a customer use case, though its near-term financial impact was not specified. NBA and ServiceNow extend partnership
• Negative Sentiment: Investors are focused on the outlook: despite a third-quarter revenue beat, ServiceNow’s fourth-quarter current remaining performance obligations growth forecast of 18.5% disappointed the market and prompted concerns about slowing backlog growth. The stock has fallen sharply since the report. ServiceNow outlook and AI concerns
• Negative Sentiment: ServiceNow is undertaking another round of layoffs, while third-quarter severance costs rose to $87 million from $24 million a year earlier. Separate reports that the board approved $127 million in retention awards as the company cuts jobs may also draw scrutiny over costs and priorities. ServiceNow layoffs and severance costs
• Negative Sentiment: ETFs were net sellers of $29.5 million in ServiceNow shares on Wednesday, adding a modest near-term headwind. ETF selling of ServiceNow shares

Insider Transactions at ServiceNow

In related news, insider Jacqueline Canney sold 7,847 shares of the firm'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 completion of the transaction, the insider directly owned 30,042 shares of the company's stock, valued at approximately $4,145,796. This trade represents a 20.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the firm's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the transaction, the insider directly owned 18,305 shares of the company's stock, valued at $2,706,760.35. The trade was a 10.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 14,081 shares of company stock valued at $1,937,904. 0.34% of the stock is currently owned by corporate insiders.

ServiceNow Stock Down 0.4%

NYSE NOW opened at $101.91 on Friday. ServiceNow, Inc. has a 12 month low of $81.24 and a 12 month high of $175.00. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 0.42. The stock has a market cap of $105.78 billion, a PE ratio of 73.32, a P/E/G ratio of 1.99 and a beta of 1.00. The stock's 50 day moving average is $136.31 and its 200 day moving average is $114.81.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.02 by ($0.02). The company had revenue of $4.11 billion for the quarter, compared to analysts' expectations of $4.09 billion. ServiceNow had a net margin of 9.36% and a return on equity of 15.17%. The company's quarterly revenue was up 20.5% compared to the same quarter last year. During the same period last year, the business earned $4.82 earnings per share. Research analysts predict that ServiceNow, Inc. will post 2.12 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Wells Fargo & Company reduced their price objective on shares of ServiceNow from $190.00 to $175.00 and set an "overweight" rating for the company in a research note on Thursday, October 29th. Weiss Ratings cut shares of ServiceNow from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, October 30th. Evercore restated an "outperform" rating on shares of ServiceNow in a research note on Tuesday, October 13th. JPMorgan Chase & Co. upped their target price on shares of ServiceNow from $150.00 to $160.00 and gave the stock an "overweight" rating in a report on Thursday, October 29th. Finally, Truist Financial set a $150.00 price target on ServiceNow and gave the stock a "buy" rating in a research note on Thursday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $154.50.

About ServiceNow

ServiceNow, Inc provides cloud-based software that helps organizations manage digital workflows and automate business processes. Founded in 2004 by Fred Luddy, the company began with a focus on IT service management and has expanded its platform to support a range of enterprise operations.

Its products include tools for IT service and operations management, customer service, human resources, security, and application development. ServiceNow also offers artificial intelligence capabilities, including tools designed to help organizations automate tasks and find information across workflows.

ServiceNow serves businesses and public-sector organizations around the world.

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