ServiceNow, Inc. $NOW Stock: Sumitomo Mitsui Trust Group Inc. Trims Holdings

Key Points

• Sumitomo Mitsui Trust Group reduced its ServiceNow holdings by 1.8%, selling 40,442 shares and retaining 2.25 million shares valued at approximately $302.1 million. Institutional investors collectively own 87.18% of the company.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and a $154.50 price target, although Zacks Research downgraded the stock to “Strong Sell.” Recent targets from major firms range from $165 to $185.
• ServiceNow’s third-quarter revenue rose 20.5% year over year to $4.11 billion, beating estimates, but EPS of $1.00 missed expectations. Shares opened at $105.12 amid concerns over slower contracted-growth forecasts and broader pressure on the stock.

Sumitomo Mitsui Trust Group Inc. trimmed its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 1.8% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 2,254,638 shares of the information technology services provider's stock after selling 40,442 shares during the period. Sumitomo Mitsui Trust Group Inc. owned about 0.22% of ServiceNow worth $302,144,000 at the end of the most recent quarter.

Other hedge funds also recently modified their holdings of the company. Cornerstone Financial Management LLC boosted its position 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 valued at $25,000 after purchasing an additional 107 shares during the last quarter. Marquette Asset Management LLC grew its stake in ServiceNow by 75.0% in the second quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider's stock valued at $30,000 after purchasing an additional 129 shares in the last quarter. Kilter Group LLC bought a new position in ServiceNow in the second quarter valued at approximately $31,000. Solstein Capital LLC bought a new position in ServiceNow in the second quarter valued at approximately $35,000. Finally, Main Street Group LTD acquired a new position in shares of ServiceNow during the 1st quarter worth approximately $40,000. Institutional investors own 87.18% of the company's stock.

Analysts Set New Price Targets

NOW has been the topic of a number of analyst reports. Zacks Research cut ServiceNow from a "hold" rating to a "strong sell" rating in a research note on Monday, October 19th. Robert W. Baird set a $185.00 target price on shares of ServiceNow in a research note on Thursday. Argus raised their target price on shares of ServiceNow from $134.00 to $170.00 and gave the company a "buy" rating in a research note on Wednesday, October 7th. Royal Bank Of Canada set a $165.00 target price on shares of ServiceNow and gave the stock an "outperform" rating in a report on Thursday. Finally, Piper Sandler reaffirmed an "overweight" rating and set a $175.00 price target on shares of ServiceNow in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have assigned a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, ServiceNow currently has a consensus rating of "Moderate Buy" and a consensus price target of $154.50.

ServiceNow Price Performance

Shares of NYSE NOW opened at $105.12 on Friday. The company has a quick ratio of 0.70, a current ratio of 0.72 and a debt-to-equity ratio of 0.42. The business's 50 day moving average price is $138.71 and its two-hundred day moving average price is $115.45. The company has a market cap of $109.11 billion, a PE ratio of 75.63, a price-to-earnings-growth ratio of 1.94 and a beta of 0.99. ServiceNow, Inc. has a twelve month low of $81.24 and a twelve month high of $189.53.

ServiceNow (NYSE:NOW - Get Free Report) last released 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 business had revenue of $4.11 billion during the quarter, compared to analyst estimates of $4.09 billion. ServiceNow had a net margin of 9.36% and a return on equity of 15.17%. The business's quarterly revenue was up 20.5% on a year-over-year basis. During the same period in the previous year, the business earned $4.82 earnings per share. On average, analysts predict that ServiceNow, Inc. will post 2.14 EPS for the current year.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow reported 20.5% year-over-year revenue growth, supported by subscription demand, and raised its 2026 artificial-intelligence contract target to $1.7 billion. Management and bullish analysts argue that AI adoption could accelerate growth in 2027. ServiceNow: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts continue to rate NOW Buy or Overweight despite reducing their price targets. JPMorgan, Piper Sandler, Wells Fargo and Oppenheimer still see substantial long-term upside, suggesting the sell-off may have been excessive. ServiceNow stock is on track for its largest drop on record
• Positive Sentiment: A new partnership with BDO Canada will help organizations govern AI and automate operations using ServiceNow’s platform, providing potential support for future enterprise demand. BDO Canada partners with ServiceNow
• Neutral Sentiment: ServiceNow’s CEO has defended the company’s valuation and long-term opportunity, while a reported $3 million insider stock purchase may signal management confidence. However, such commentary has not offset investor concerns about guidance. ServiceNow CEO makes striking unicorn claim
• Negative Sentiment: The primary catalyst for the sell-off was management’s forecast for slower fourth-quarter current remaining performance obligation growth—about 18.5%, below the approximately 21.5% revenue-growth outlook. Because cRPO represents contracted future revenue, investors viewed the gap as a warning that demand may be weakening. ServiceNow Guides to Slower Backlog Growth
• Negative Sentiment: Third-quarter adjusted earnings of $1.00 per share fell short of the $1.02 consensus estimate. The miss, combined with concerns that AI could disrupt traditional software pricing and demand, overshadowed the revenue beat and higher AI target. ServiceNow shares plunge after earnings
• Negative Sentiment: Investors are also monitoring ServiceNow’s roughly $7.5 billion debt load and rising interest costs, while a shareholder investigation into potential securities-law violations adds reputational and legal uncertainty. ServiceNow’s Debt and Interest Costs Jump

Insider Activity at ServiceNow

In other ServiceNow news, insider Paul Fipps sold 2,034 shares of the firm's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the sale, the insider owned 18,305 shares of the company's stock, valued at $2,706,760.35. This trade represents a 10.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 transaction, the director directly owned 43,990 shares of the company's stock, valued at approximately $5,960,645. This trade represents a 5.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 14,081 shares of company stock worth $1,937,904. Company 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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