South Street Advisors LLC Buys 84,458 Shares of ServiceNow, Inc. $NOW

Key Points

• South Street Advisors LLC increased its ServiceNow stake by 349.2% in Q4, buying 84,458 more shares and bringing its total holding to 108,642 shares worth about $16.6 million.
• Institutional ownership in ServiceNow remains very high at 87.18%, and several large investors such as Vanguard and Geode Capital also significantly boosted their positions during the quarter.
• Analysts remain broadly positive, with ServiceNow carrying an average “Moderate Buy” rating and an average price target of $141.85, though several firms recently trimmed their targets.

South Street Advisors LLC lifted its stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 349.2% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 108,642 shares of the information technology services provider's stock after purchasing an additional 84,458 shares during the quarter. ServiceNow comprises 2.3% of South Street Advisors LLC's investment portfolio, making the stock its 18th biggest holding. South Street Advisors LLC's holdings in ServiceNow were worth $16,643,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds also recently made changes to their positions in NOW. Vanguard Group Inc. boosted its position in shares of ServiceNow by 404.5% during the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock worth $15,619,771,000 after purchasing an additional 81,752,460 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of ServiceNow by 404.8% in the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock worth $3,591,425,000 after purchasing an additional 18,854,775 shares in the last quarter. Fisher Asset Management LLC lifted its holdings in shares of ServiceNow by 404.3% in the 4th quarter. Fisher Asset Management LLC now owns 8,351,824 shares of the information technology services provider's stock worth $1,279,416,000 after purchasing an additional 6,695,802 shares in the last quarter. Jennison Associates LLC lifted its holdings in shares of ServiceNow by 280.1% in the 4th quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider's stock worth $1,291,758,000 after purchasing an additional 6,213,762 shares in the last quarter. Finally, Legal & General Group Plc lifted its holdings in shares of ServiceNow by 406.8% in the 4th quarter. Legal & General Group Plc now owns 6,895,985 shares of the information technology services provider's stock worth $1,056,396,000 after purchasing an additional 5,535,170 shares in the last quarter. Institutional investors own 87.18% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently weighed in on NOW. Citic Securities dropped their price target on shares of ServiceNow from $168.00 to $140.00 and set a "buy" rating on the stock in a research report on Thursday, May 21st. Wells Fargo & Company dropped their price target on shares of ServiceNow from $185.00 to $160.00 and set an "overweight" rating on the stock in a research report on Thursday, April 23rd. Citizens Jmp reaffirmed a "market outperform" rating and issued a $157.00 price target on shares of ServiceNow in a research report on Tuesday, May 5th. Stifel Nicolaus dropped their price target on shares of ServiceNow from $135.00 to $120.00 and set a "buy" rating on the stock in a research report on Thursday, April 23rd. Finally, Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $236.00 price target (up from $226.00) on shares of ServiceNow in a research report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $141.85.

Insider Activity at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the transaction, the director owned 44,930 shares in the company, valued at approximately $3,919,243.90. This represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of the company's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $98.51, for a total transaction of $103,238.48. Following the sale, the insider directly owned 12,072 shares in the company, valued at approximately $1,189,212.72. This trade represents a 7.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 28,071 shares of company stock valued at $2,529,956 over the last quarter. Corporate insiders own 0.34% of the company's stock.

ServiceNow Price Performance

Shares of NYSE NOW opened at $108.58 on Friday. ServiceNow, Inc. has a twelve month low of $81.24 and a twelve month high of $211.48. The stock's 50 day moving average price is $97.84 and its 200-day moving average price is $123.73. The company has a market capitalization of $111.95 billion, a PE ratio of 64.71, a PEG ratio of 1.69 and a beta of 0.82. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting analysts' consensus estimates of $0.97. The company had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm's quarterly revenue was up 22.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.81 EPS. On average, equities analysts anticipate that ServiceNow, Inc. will post 2.35 EPS for the current year.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is benefiting from a broader software-sector rebound after Snowflake’s strong earnings eased fears that AI will obsolete subscription software, especially for companies like NOW that sit at the center of AI-enabled workflows. ServiceNow (NOW) Stock Trades Up, Here Is Why
• Positive Sentiment: Dell’s blowout results and raised forecast also helped lift sympathy trades across AI-related names, including ServiceNow, reinforcing investor confidence in spending tied to AI infrastructure and automation. HPE, SMCI, NOW Stocks Rise In Sympathy Surge After Dell's Blowout Report
• Positive Sentiment: Wipro expanded its partnership with ServiceNow to deploy agentic AI workflows across enterprise functions, a sign that NOW’s platform is gaining more adoption in automation and AI use cases. Wipro stock gains 4%: can its ServiceNow tie-up drive growth?
• Positive Sentiment: Unusually high call-option volume suggests traders are positioning for additional upside in ServiceNow shares, which can add to near-term bullish sentiment. ServiceNow Sees Unusually High Options Volume NYSE: NOW
• Neutral Sentiment: Recent coverage and conference remarks continue to highlight ServiceNow’s focus on governance, security, and enterprise integration as it competes for larger AI budgets, but these items are more strategic than immediate catalysts. Can ServiceNow Sustain Its Growth Amid Rising AI Competition?

ServiceNow Profile

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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