Sigma Investment Counselors Inc. Increases Stock Position in ServiceNow, Inc. $NOW

Key Points

• Sigma Investment Counselors boosted its stake in ServiceNow by 340.5% in Q4, buying 15,593 shares to hold 20,172 shares worth about $3.09 million, and numerous other institutions also materially increased positions leaving 87.18% of the stock owned by institutional investors.
• ServiceNow reported quarterly EPS of $0.97 (in line) and revenue of $3.77 billion, up 22.1% year‑over‑year, while unveiling major AI product and partnership initiatives (expanded AI Control Tower, Project Arc with NVIDIA) and >$1B in AWS Marketplace transactions, even as the stock faces near‑term valuation pressure and several lowered price targets.

Sigma Investment Counselors Inc. increased its position in ServiceNow, Inc. (NYSE:NOW - Free Report) by 340.5% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 20,172 shares of the information technology services provider's stock after purchasing an additional 15,593 shares during the quarter. Sigma Investment Counselors Inc.'s holdings in ServiceNow were worth $3,090,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also made changes to their positions in the company. Cohen Klingenstein LLC boosted its stake in shares of ServiceNow by 400.0% in the fourth quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider's stock valued at $1,532,000 after purchasing an additional 8,000 shares during the period. Sumitomo Mitsui Trust Group Inc. boosted its stake in ServiceNow by 385.9% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider's stock valued at $398,202,000 after acquiring an additional 2,064,440 shares during the last quarter. Torray Investment Partners LLC boosted its stake in ServiceNow by 390.5% during the 4th quarter. Torray Investment Partners LLC now owns 40,629 shares of the information technology services provider's stock valued at $6,224,000 after acquiring an additional 32,345 shares during the last quarter. Jennison Associates LLC boosted its stake in ServiceNow by 280.1% during the 4th quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider's stock valued at $1,291,758,000 after acquiring an additional 6,213,762 shares during the last quarter. Finally, Narwhal Capital Management boosted its stake in ServiceNow by 763.5% during the 4th quarter. Narwhal Capital Management now owns 16,977 shares of the information technology services provider's stock valued at $2,601,000 after acquiring an additional 15,011 shares during the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

ServiceNow Trading Down 3.2%

ServiceNow stock opened at $89.10 on Thursday. The firm's 50-day moving average is $102.97 and its 200-day moving average is $133.33. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. ServiceNow, Inc. has a 1 year low of $81.24 and a 1 year high of $211.48. The company has a market cap of $91.86 billion, a P/E ratio of 53.10, a PEG ratio of 1.63 and a beta of 0.82.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates 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 period last year, the firm posted $0.81 EPS. The company's revenue for the quarter was up 22.1% on a year-over-year basis. On average, equities analysts expect that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

Insider Activity

In related news, insider Paul Fipps sold 3,696 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $101.77, for a total value of $376,141.92. Following the sale, the insider owned 8,061 shares of the company's stock, valued at $820,367.97. This trade represents a 31.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the 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 in the company, valued at approximately $4,697,323.10. This trade represents a 3.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 25,164 shares of company stock worth $2,497,021 in the last 90 days. 0.34% of the stock is currently owned by insiders.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Major AI product and partner announcements at Knowledge 2026 — ServiceNow expanded its AI Control Tower, launched Otto and Autonomous Workforce capabilities, and announced deeper integrations across Microsoft, Lenovo, FedEx and others, strengthening its enterprise AI governance and workflow play. ServiceNow expands AI Control Tower
• Positive Sentiment: Expanded NVIDIA partnership with Project Arc — ServiceNow and NVIDIA are pushing Project Arc (autonomous desktop AI agents) to run under ServiceNow’s AI Control Tower with NVIDIA OpenShell security, a key step toward production-ready, governed AI agents — a concrete product-market example investors can model revenue growth from. ServiceNow And NVIDIA Project Arc
• Positive Sentiment: Commercial traction signals — ServiceNow said AWS Marketplace transactions topped $1 billion as customers adopt agentic AI at scale, supporting faster monetization of the platform. ServiceNow hits $1 billion in AWS Marketplace transactions
• Positive Sentiment: Multiple analyst upgrades/reaffirmations — Several firms reaffirmed Buy/Outperform ratings or raised price targets (examples: DA Davidson, RBC, Bernstein) after the analyst/investor day, boosting investor confidence in the long‑term revenue/margin roadmap. DA Davidson Reaffirms Buy Bernstein Hikes Price Target
• Neutral Sentiment: Investor day materials released — Slides and full analyst/investor day transcript provide more detail on ServiceNow’s $30B-by-2030 revenue ambition and margin/F CF targets; useful for modeling but not an immediate revenue read. Analyst/Investor Day Transcript
• Negative Sentiment: Valuation reset and near‑term skepticism remain — Coverage notes and market commentary highlight that NOW has already seen a steep YTD drawdown and that the stock is “working through a reset” despite the product wins; investors must weigh near‑term multiple compression vs. long‑term execution. Valuation Check After Knowledge 2026

Wall Street Analyst Weigh In

A number of research analysts have commented on the stock. Truist Financial reduced their price objective on shares of ServiceNow from $125.00 to $120.00 and set a "buy" rating on the stock in a research note on Thursday, April 23rd. Oppenheimer set a $130.00 price objective on shares of ServiceNow and gave the company an "outperform" rating in a research note on Wednesday, April 15th. Wells Fargo & Company reduced their price objective on shares of ServiceNow from $185.00 to $160.00 and set an "overweight" rating on the stock in a research note on Thursday, April 23rd. Morgan Stanley reduced their price objective on shares of ServiceNow from $210.00 to $180.00 and set an "overweight" rating on the stock in a research note on Thursday, April 23rd. Finally, Cantor Fitzgerald reduced their price objective on shares of ServiceNow to $122.00 and set an "overweight" rating on the stock in a research note on Thursday, April 23rd. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $144.71.

About ServiceNow

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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