State Street Corp Grows Holdings in ServiceNow, Inc. $NOW

Key Points

• State Street increased its ServiceNow stake by 2% in the second quarter, bringing its holdings to 49.0 million shares worth approximately $4.87 billion. Institutional investors and hedge funds collectively own 87.18% of NOW.
• ServiceNow reported quarterly revenue of $3.99 billion, up 24% year over year, and adjusted earnings of $0.90 per share, exceeding analyst expectations. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $146.51.
• ServiceNow is benefiting from demand for enterprise workflows and AI integrations, but its high valuation and growing competition from Microsoft and Salesforce remain key risks. The stock recently traded at $135.96, down 1.2%.

State Street Corp grew its stake in ServiceNow, Inc. (NYSE:NOW - Free Report) by 2.0% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 49,038,218 shares of the information technology services provider's stock after purchasing an additional 979,726 shares during the quarter. State Street Corp owned approximately 4.74% of ServiceNow worth $4,868,514,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. BlackRock Inc. purchased a new stake in shares of ServiceNow during the 2nd quarter valued at approximately $9,536,615,000. Geode Capital Management LLC increased its position in shares of ServiceNow by 404.8% during the fourth 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 acquiring an additional 18,854,775 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of ServiceNow by 417.0% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 14,004,910 shares of the information technology services provider's stock worth $2,145,412,000 after buying an additional 11,295,806 shares in the last quarter. Norges Bank purchased a new stake in shares of ServiceNow during the 4th quarter worth $2,020,992,000. Finally, Capital International Investors increased its holdings in shares of ServiceNow by 396.0% in the 4th quarter. Capital International Investors now owns 10,393,373 shares of the information technology services provider's stock valued at $1,592,310,000 after acquiring an additional 8,297,818 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow Stock Down 1.2%

NOW traded down $1.72 during trading on Tuesday, hitting $135.96. The company had a trading volume of 6,837,194 shares, compared to its average volume of 22,649,033. The company has a market cap of $140.59 billion, a PE ratio of 85.07, a P/E/G ratio of 2.49 and a beta of 0.97. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $194.73. The business has a 50-day moving average of $123.90 and a 200-day moving average of $110.30. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70.

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

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Higher analyst price target: Cantor Fitzgerald raised its ServiceNow price target from $141 to $174 and reiterated an “overweight” rating, implying substantial potential upside from the referenced price. The move contributed to recent positive sentiment toward NOW. Cantor Fitzgerald Boosts ServiceNow Price Target
• Positive Sentiment: AI due-diligence integration: ServiceNow is partnering with Xapien to embed automated, fully sourced due-diligence research into workflows used for onboarding and third-party risk management. The arrangement strengthens ServiceNow’s positioning as an AI-enabled enterprise workflow platform and could support additional customer use cases. Xapien Partners With ServiceNow
• Positive Sentiment: Workflow and AI demand: Analysts continue to cite broad workflow demand, cross-selling opportunities and AI partnerships as growth drivers. ServiceNow’s ability to expand across enterprise functions may help it compete for larger software budgets. NOW Rides on Strong Workflow Demand
• Positive Sentiment: Improved software-stock backdrop: Falling Treasury yields and signs of easing U.S.–China tensions improved risk appetite. Lower yields can benefit high-growth software companies such as ServiceNow because more of their expected cash flows occur in the future. Software Stocks Rise as Treasury Yields Fall
• Neutral Sentiment: Brokerage consensus: ServiceNow carries a consensus “Moderate Buy” rating, indicating generally favorable expectations but not unanimous conviction. ServiceNow Given Moderate Buy Rating
• Negative Sentiment: Competition and valuation concerns: ServiceNow faces increasing competition from Salesforce and Microsoft, while its elevated valuation leaves the stock sensitive to interest rates and any signs of slowing growth. Commentary also describes the company as difficult to assess because analysts have widely differing views on the impact of AI-driven software disruption. ServiceNow Competition and Workflow Demand Analysis

Analysts Set New Price Targets

A number of equities research analysts have weighed in on NOW shares. Morgan Stanley set a $180.00 price objective on ServiceNow in a research note on Tuesday, July 21st. Oppenheimer reiterated an "outperform" rating and set a $140.00 price target (up from $130.00) on shares of ServiceNow in a research report on Wednesday, July 15th. BTIG Research lifted their target price on shares of ServiceNow from $150.00 to $170.00 and gave the stock a "buy" rating in a research report on Tuesday, September 8th. Truist Financial boosted their target price on shares of ServiceNow from $120.00 to $130.00 and gave the company a "buy" rating in a research note on Thursday, July 9th. Finally, Needham & Company LLC increased their price target on ServiceNow from $115.00 to $155.00 and gave the stock a "buy" rating in a research note on Friday, September 11th. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $146.51.

Insider Buying and Selling

In other ServiceNow news, insider Jacqueline P. Canney sold 7,847 shares of the 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 sale, the insider directly owned 30,042 shares of the company's stock, valued at approximately $4,145,796. This represents a 20.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of ServiceNow stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the transaction, the insider directly owned 18,305 shares of the company's stock, valued at $2,706,760.35. This trade represents a 10.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 14,081 shares of company stock worth $1,937,904 over the last ninety days. 0.34% of the stock is owned by insiders.

ServiceNow Company Profile

ServiceNow, Inc is a cloud-based enterprise software company that provides digital workflow and automation solutions. Its Now Platform enables organizations to manage and connect business processes across information technology, customer service, human resources, finance, legal operations and other departments.

The company's products and services include IT service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance management, strategic portfolio management and application development tools.

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