The Manufacturers Life Insurance Company Decreases Stock Position in ServiceNow, Inc. $NOW

Key Points

• The Manufacturers Life Insurance Company reduced its ServiceNow stake by 22.9% in the second quarter, selling 200,938 shares and retaining 674,659 shares valued at approximately $67.0 million.
• ServiceNow reported quarterly results above expectations, with EPS of $0.90 versus the $0.86 consensus estimate and revenue of $3.99 billion, up 24% year over year.
• Analyst sentiment remains broadly positive: ServiceNow has a consensus “Moderate Buy” rating and an average price target of $145.71, while institutional investors own 87.18% of the stock.

The Manufacturers Life Insurance Company trimmed its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 22.9% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 674,659 shares of the information technology services provider's stock after selling 200,938 shares during the period. The Manufacturers Life Insurance Company owned 0.07% of ServiceNow worth $66,980,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently added to or reduced their stakes in the company. California State Teachers Retirement System grew its position in shares of ServiceNow by 9,980.9% in the second quarter. California State Teachers Retirement System now owns 154,496,061 shares of the information technology services provider's stock valued at $15,338,369,000 after purchasing an additional 152,963,494 shares during the last quarter. BlackRock Inc. acquired a new position in shares of ServiceNow during the 2nd quarter worth approximately $9,536,615,000. State Street Corp lifted its stake in ServiceNow by 406.6% in the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock valued at $7,337,280,000 after buying an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in ServiceNow by 371.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock valued at $4,962,692,000 after buying an additional 25,517,218 shares in the last quarter. Finally, Geode Capital Management LLC lifted its stake in 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 valued at $3,591,425,000 after buying an additional 18,854,775 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

ServiceNow Trading Up 1.0%

Shares of NOW opened at $132.49 on Friday. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $194.73. The company has a market capitalization of $136.99 billion, a PE ratio of 82.81, a price-to-earnings-growth ratio of 2.41 and a beta of 0.97. The stock has a fifty day moving average of $120.27 and a two-hundred day moving average of $108.91. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.04. The business 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%.The business's revenue was up 24.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.81 earnings per share. As a group, analysts forecast that ServiceNow, Inc. will post 2.22 EPS for the current year.

Analyst Upgrades and Downgrades

NOW has been the subject of several recent research reports. Guggenheim raised ServiceNow from a "neutral" rating to a "buy" rating and set a $125.00 price target for the company in a research report on Wednesday, July 1st. Bank of America upped their price objective on ServiceNow from $130.00 to $150.00 and gave the company a "buy" rating in a research report on Wednesday, August 19th. Citigroup reaffirmed a "market outperform" rating on shares of ServiceNow in a research note on Thursday, July 23rd. JPMorgan Chase & Co. lifted their price objective on ServiceNow from $145.00 to $150.00 and gave the stock an "overweight" rating in a research report on Thursday, July 23rd. Finally, TD Cowen reissued a "buy" rating and issued a $140.00 target price on shares of ServiceNow in a research note on Monday, August 17th. One equities research 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 assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $145.71.

Insider Buying and Selling

In other ServiceNow news, insider Paul Fipps sold 2,034 shares of the firm's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $147.87, for a total value of $300,767.58. Following the sale, the insider directly owned 18,305 shares of the company's stock, valued at approximately $2,706,760.35. This trade represents a 10.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jacqueline Canney sold 7,847 shares of ServiceNow stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $138.00, for a total value of $1,082,886.00. Following the completion of the sale, the insider owned 30,042 shares of the company's stock, valued at $4,145,796. This trade represents a 20.71% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 14,081 shares of company stock worth $1,937,904. 0.34% of the stock is owned by company insiders.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Needham raises ServiceNow target to $155: Needham & Company upgraded NOW to “buy” and increased its price target from $115 to $155, implying approximately 17% upside from the referenced share price. The move was part of a broader group of analyst target increases and is the clearest near-term catalyst for the stock. ServiceNow analyst forecasts
• Positive Sentiment: Agentic AI adoption is accelerating: ServiceNow is described as a leader in enterprise agentic AI, with production deployments increasing ninefold over nine months. Analysts expect AI-related revenue to grow substantially through 2030, supporting the long-term growth narrative. ServiceNow agentic AI analysis
• Positive Sentiment: Expanded AI visibility and ecosystem activity: ServiceNow will partner with Fortune on an October AI summit focused on commercializing AI, while RoboMQ launched an identity-governance application on the ServiceNow Store. These developments reinforce ServiceNow’s positioning as an enterprise workflow and AI platform, although they are unlikely to materially affect near-term revenue. Fortune AIQ Summit partnership
• Neutral Sentiment: Coverage on AI and cybersecurity highlights ServiceNow’s strategic relevance as businesses seek integrated automation, security and governance tools. However, the reports provide limited new financial guidance. AI and cybersecurity reshaping ServiceNow
• Negative Sentiment: Despite its growth prospects, AI revenue remains a relatively small portion of ServiceNow’s overall business, and the stock’s elevated valuation leaves it sensitive to any slowdown in enterprise spending or AI monetization.

About ServiceNow

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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