Tejara Capital Ltd Invests $4.05 Million in ServiceNow, Inc. $NOW

Key Points

• Tejara Capital acquired 40,760 ServiceNow shares worth approximately $4.05 million in the second quarter, making NOW about 1.7% of the fund’s portfolio. Hedge funds and institutional investors collectively own 87.18% of the company.
• ServiceNow exceeded quarterly expectations, reporting $0.90 EPS versus $0.86 expected and $3.99 billion in revenue, up 24% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $144.24.
• ServiceNow’s AI opportunity and expanded partnership with Tech Mahindra support the bullish outlook, but high valuation, new competition and insider selling remain notable risks for investors.

Tejara Capital Ltd acquired a new position in ServiceNow, Inc. (NYSE:NOW - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The fund acquired 40,760 shares of the information technology services provider's stock, valued at approximately $4,047,000. ServiceNow makes up about 1.7% of Tejara Capital Ltd's holdings, making the stock its 21st largest holding.

Other hedge funds have also recently added to or reduced their stakes in the company. Brighton Jones LLC lifted its holdings in shares of ServiceNow by 1.1% in the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider's stock valued at $2,919,000 after purchasing an additional 30 shares in the last quarter. Sivia Capital Partners LLC lifted its stake in ServiceNow by 4.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider's stock valued at $861,000 after buying an additional 34 shares in the last quarter. United Bank lifted its stake in ServiceNow by 15.5% in the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider's stock valued at $1,562,000 after buying an additional 204 shares in the last quarter. Riggs Asset Managment Co. Inc. grew its holdings in ServiceNow by 2.2% during the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider's stock valued at $1,976,000 after buying an additional 42 shares during the last quarter. Finally, Nebula Research & Development LLC increased its position in ServiceNow by 205.1% during the second quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider's stock worth $931,000 after buying an additional 609 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at ServiceNow

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the business's 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 completion of the sale, the director owned 46,690 shares of the company's stock, valued at approximately $5,864,264. The trade was a 3.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.34% of the company's stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America raised its price target to $150 from $130 and maintained a Buy rating. The firm said ServiceNow is among the software companies best positioned to monetize AI, helping support a broader software-sector rally. ServiceNow, Adobe, Workday stocks get BofA PT boost
• Positive Sentiment: ServiceNow expanded its multi-year partnership with Tech Mahindra to help enterprises move AI projects from pilot programs into production-scale deployments. The agreement could increase adoption of ServiceNow’s AI and automation tools and reinforce its positioning as an enterprise “AI control tower.” Tech Mahindra and ServiceNow Expand Partnership
• Positive Sentiment: Several market commentaries described NOW as an AI beneficiary, citing its recurring-revenue model, enterprise workflow position, and potential for continued earnings growth. Some analysts see further upside if ServiceNow delivers a strong third quarter. ServiceNow: A Clear AI Winner
• Neutral Sentiment: Television commentators included ServiceNow among their “final trades,” while broader coverage characterized the recent move as part of a rebound in beaten-down software stocks as fears of AI-driven disruption ease. CNBC Final Trades
• Negative Sentiment: Competitive and valuation risks remain. A Forbes article highlighted an AI startup, Serval, that aims to challenge ServiceNow in enterprise automation, while the stock’s elevated valuation leaves it sensitive to slower growth or disappointing AI monetization. Serval Wants To Replace ServiceNow
• Negative Sentiment: Separate coverage reported trading pressure following insider selling, which may raise short-term concerns about executive confidence, although TD Cowen reiterated its Buy rating. ServiceNow Trading Down Following Insider Selling

ServiceNow Stock Performance

NYSE:NOW opened at $129.73 on Friday. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The company has a market cap of $134.14 billion, a P/E ratio of 81.08, a P/E/G ratio of 2.24 and a beta of 0.94. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $194.73. The firm's 50 day moving average is $108.36 and its two-hundred day moving average is $105.58.

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 company had revenue of $3.99 billion during the quarter, compared to analysts' expectations of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The business's quarterly revenue was up 24.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.81 EPS. Analysts expect that ServiceNow, Inc. will post 2.24 EPS for the current year.

Analyst Ratings Changes

NOW has been the subject of a number of recent research reports. Oppenheimer reiterated an "outperform" rating and set a $140.00 price objective (up from $130.00) on shares of ServiceNow in a research report on Wednesday, July 15th. Wells Fargo & Company restated an "overweight" rating and set a $175.00 target price (up from $160.00) on shares of ServiceNow in a research report on Wednesday, August 12th. CLSA initiated coverage on ServiceNow in a report on Monday, July 20th. They issued an "underperform" rating and a $72.00 price target for the company. Citizens Jmp restated a "market outperform" rating and set a $157.00 price objective on shares of ServiceNow in a report on Tuesday, May 5th. Finally, BMO Capital Markets lifted their price objective on ServiceNow from $115.00 to $118.00 and gave the company an "outperform" rating in a research report on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $144.24.

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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