Sumitomo Mitsui Trust Group Inc. Trims Stock Position in ServiceNow, Inc. $NOW

Key Points

• Sumitomo Mitsui Trust Group reduced its ServiceNow stake by 4.7% in Q1, selling 120,900 shares and ending with 2,478,497 shares worth about $259.1 million.
• ServiceNow reported quarterly EPS of $0.97, matching Wall Street estimates, while revenue came in at $3.77 billion, slightly above expectations and up 22.1% year over year.
• Analyst sentiment remains broadly positive: the stock has a Moderate Buy consensus rating with an average price target of $141.22, even as some firms trimmed targets and insiders sold shares in recent months.

Sumitomo Mitsui Trust Group Inc. cut its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 4.7% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 2,478,497 shares of the information technology services provider's stock after selling 120,900 shares during the period. Sumitomo Mitsui Trust Group Inc. owned about 0.24% of ServiceNow worth $259,127,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds also recently added to or reduced their stakes in the company. Wealth Watch Advisors INC acquired a new position in shares of ServiceNow in the 3rd quarter valued at about $29,000. Texas Capital Bancshares Inc TX purchased a new position in ServiceNow during the third quarter valued at approximately $37,000. Ameriflex Group Inc. raised its position in ServiceNow by 187.5% during the third quarter. Ameriflex Group Inc. now owns 46 shares of the information technology services provider's stock valued at $42,000 after acquiring an additional 30 shares in the last quarter. Kelleher Financial Advisors purchased a new position in ServiceNow during the third quarter valued at approximately $50,000. Finally, Pin Oak Investment Advisors Inc. lifted its holdings in ServiceNow by 20.7% in the third quarter. Pin Oak Investment Advisors Inc. now owns 134 shares of the information technology services provider's stock valued at $123,000 after acquiring an additional 23 shares during the period. 87.18% of the stock is owned by hedge funds and other institutional investors.

ServiceNow Price Performance

ServiceNow stock opened at $107.87 on Thursday. The stock has a market capitalization of $111.22 billion, a P/E ratio of 64.29, a P/E/G ratio of 1.84 and a beta of 0.96. The company's fifty day moving average price is $101.74 and its 200 day moving average price is $111.62. 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 $210.20.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data 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 during the quarter, compared to analysts' expectations of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm's revenue for the quarter was up 22.1% on a year-over-year basis. During the same period in the prior year, the business posted $0.81 earnings per share. As a group, equities research analysts anticipate that ServiceNow, Inc. will post 2.34 earnings per share for the current fiscal year.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow shares have been lifted by a broader rotation into beaten-down software stocks, with investors moving away from high-flying semiconductors and into enterprise software names. ServiceNow (NOW) Stock Is Up, What You Need To Know
• Positive Sentiment: Traders are also reacting to a more constructive analyst tone and fresh AI product momentum, with Guggenheim reportedly dismissing the “software extinction” thesis and upgrading ServiceNow. Why ServiceNow Stock Is Climbing After Guggenheim Dismisses Software 'Extinction' Valuation
• Positive Sentiment: ServiceNow is gaining attention for new AI and government/defense partnerships, including work tied to mission-critical biosurveillance and state health systems, which could expand its addressable market beyond workflow automation. ServiceNow (NOW) Lands Defense And State AI Partnerships That Reach Beyond Workflows
• Positive Sentiment: Another bullish angle is that outside coverage is arguing the “AI bear case” against ServiceNow is weakening, reinforcing the idea that the stock may still have upside despite valuation concerns. ServiceNow: The AI Bear Case Is Falling Apart
• Neutral Sentiment: Several recent pieces, including comparisons with Salesforce and EPAM, are largely valuation and strategy debates rather than immediate catalysts, so they are more likely to shape longer-term sentiment than today’s trading. EPAM or NOW: Which Is the Better Value Stock Right Now?
• Neutral Sentiment: ServiceNow’s appearance in “most watched” and “final trades” media coverage is adding visibility, but these mentions do not appear to be tied to a fundamental business update. ServiceNow, Inc. (NOW) is Attracting Investor Attention: Here is What You Should Know
• Negative Sentiment: Macro risk is still present for software stocks, as Middle East tensions pressured peers like Palantir and Salesforce; that kind of market weakness could spill over into ServiceNow if risk appetite fades. Palantir Leads Software Stocks Lower

Analyst Ratings Changes

NOW has been the subject of several analyst reports. Argus decreased their target price on shares of ServiceNow from $180.00 to $134.00 and set a "buy" rating for the company in a research note on Friday, April 24th. Needham & Company LLC restated a "buy" rating and set a $115.00 price target on shares of ServiceNow in a research report on Tuesday, May 5th. BTIG Research reaffirmed a "buy" rating and issued a $150.00 price objective on shares of ServiceNow in a report on Monday, June 29th. Weiss Ratings downgraded shares of ServiceNow from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, April 21st. Finally, UBS Group reissued an "outperform" rating on shares of ServiceNow in a research note on Tuesday, May 26th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $141.22.

Insider Activity at ServiceNow

In related news, Director Anita M. Sands sold 16,445 shares of the company's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the transaction, the director owned 30,090 shares in the company, valued at $2,712,312.60. This represents a 35.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the completion of the transaction, the director directly owned 44,930 shares in the company, valued at $3,919,243.90. This represents a 3.23% 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. Insiders sold 28,071 shares of company stock worth $2,529,956 over the last three months. Company insiders own 0.34% of the company's stock.

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.

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.