Strategic Advisors LLC Decreases Stock Position in ServiceNow, Inc. $NOW

Key Points

• Strategic Advisors LLC cut its ServiceNow position by 87.2% in the second quarter, selling 32,981 shares and retaining 4,847 shares valued at approximately $481,000.
• Institutional ownership remains high at 87.18%, with BlackRock, State Street, T. Rowe Price, Geode Capital and Morgan Stanley among major holders that increased their positions. A ServiceNow director also sold 1,500 shares under a pre-arranged trading plan.
• ServiceNow posted quarterly revenue of $3.99 billion, up 24% year over year, and exceeded earnings expectations. Analysts maintain a broadly positive outlook with a “Moderate Buy” consensus, though the stock’s elevated valuation and cybersecurity vulnerabilities present risks.

Strategic Advisors LLC trimmed its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 87.2% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 4,847 shares of the information technology services provider's stock after selling 32,981 shares during the period. Strategic Advisors LLC's holdings in ServiceNow were worth $481,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently added to or reduced their stakes in NOW. BlackRock Inc. purchased a new stake in shares of ServiceNow in the second quarter valued at about $9,536,615,000. State Street Corp increased its stake in shares of ServiceNow by 406.6% during the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock worth $7,337,280,000 after purchasing an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD raised its position in shares of ServiceNow by 371.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock worth $4,962,692,000 after purchasing an additional 25,517,218 shares during the last quarter. Geode Capital Management LLC raised its position in shares of ServiceNow by 404.8% during 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 during the last quarter. Finally, Morgan Stanley lifted its stake in ServiceNow by 335.6% in the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock valued at $3,482,543,000 after buying an additional 17,514,679 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $125.60, for a total transaction of $188,400.00. Following the transaction, the director directly owned 46,690 shares in the company, valued at approximately $5,864,264. This represents a 3.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.34% of the company's stock.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s recent rally was helped by Salesforce’s strong quarterly results and upbeat outlook, which eased concerns about a “SaaS-pocalypse.” Investors are increasingly viewing AI as an enhancement to existing enterprise workflows rather than a threat to core software platforms. Why ServiceNow Rallied Today
• Positive Sentiment: Analyst and market commentary highlights ServiceNow’s agentic-AI momentum, including more than $1 billion in AI annual contract value, broader enterprise adoption and potential new monetization opportunities. The company’s AI Control Tower and expanding customer spending are viewed as additional growth drivers. Agentic AI Adoption Boosts NOW's Growth Prospects
• Positive Sentiment: Wall Street remains broadly constructive, with ServiceNow receiving Buy or Moderate Buy consensus ratings. The stock has also approached technical buy points, while some analysts have issued targets as high as $150 or substantially higher. Is It Worth Investing in ServiceNow Based on Wall Street's Bullish Views?
• Neutral Sentiment: ServiceNow has risen about 70% from its yearly low and remains below its prior peak, creating debate over whether the move represents a new buying opportunity or a temporary rebound. Analysts’ median price target of approximately $134 is below the current trading level, limiting near-term upside based on that measure. Is It a Golden Opportunity to Buy ServiceNow Stock?
• Negative Sentiment: ServiceNow warned of three maximum-severity vulnerabilities that could allow unauthenticated attackers to execute code or access SQL systems. Although patches and mitigations may limit the financial impact, the disclosures create reputational, customer-retention and execution risks. Three CVSS 10.0 ServiceNow Flaws
• Negative Sentiment: At an elevated earnings multiple, the stock is vulnerable to profit-taking if AI growth slows. Jim Cramer recommended selling half a position and retaining the remainder, underscoring the sharp rally and the possibility that some optimism is already reflected in the shares. Jim Cramer’s ServiceNow Advice

ServiceNow Stock Up 0.0%

NOW stock opened at $144.77 on Monday. The company has a 50 day moving average price of $112.33 and a two-hundred day moving average price of $106.61. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The stock has a market capitalization of $149.69 billion, a P/E ratio of 90.48, a PEG ratio of 2.55 and a beta of 0.94. ServiceNow, Inc. has a one year low of $81.24 and a one year high of $194.73.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The company had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same quarter in the prior year, the company posted $0.81 EPS. The business's revenue for the quarter was up 24.0% compared to the same quarter last year. As a group, sell-side analysts expect that ServiceNow, Inc. will post 2.24 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. UBS Group set a $248.00 target price on ServiceNow in a report on Thursday, July 23rd. The Goldman Sachs Group reissued a "buy" rating on shares of ServiceNow in a report on Monday, August 3rd. Citic Securities decreased their price objective on ServiceNow from $168.00 to $140.00 and set a "buy" rating on the stock in a research note on Thursday, May 21st. Truist Financial lifted their price objective on ServiceNow from $120.00 to $130.00 and gave the stock a "buy" rating in a research report on Thursday, July 9th. Finally, Wells Fargo & Company reiterated an "overweight" rating and set a $175.00 price objective (up from $160.00) on shares of ServiceNow in a research report on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, ServiceNow currently has an average rating of "Moderate Buy" and a consensus target price of $144.24.

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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This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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