Tocqueville Asset Management L.P. Buys Shares of 107,660 ServiceNow, Inc. $NOW

Key Points

• Tocqueville Asset Management bought 107,660 ServiceNow shares in the second quarter, valued at approximately $10.7 million. Institutional investors collectively own 87.18% of the company.
• ServiceNow reported quarterly revenue of $3.99 billion, up 24% year over year, and adjusted earnings of $0.90 per share, exceeding analyst estimates.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $144.24, though AI-driven pricing risks and execution concerns surrounding the Armis acquisition remain potential overhangs.

Tocqueville Asset Management L.P. purchased a new position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 107,660 shares of the information technology services provider's stock, valued at approximately $10,688,000.

Several other hedge funds also recently made changes to their positions in NOW. Wealth Watch Advisors INC bought a new stake in shares of ServiceNow in the third quarter worth $29,000. Kelleher Financial Advisors bought a new position in ServiceNow in the third quarter valued at $50,000. Pin Oak Investment Advisors Inc. grew its position 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 purchasing an additional 23 shares in the last quarter. Jupiter Wealth Management LLC acquired a new stake in ServiceNow in the 2nd quarter valued at $154,000. Finally, CBIZ Investment Advisory Services LLC increased its stake in ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after buying an additional 135 shares during the last quarter. 87.18% of the stock is owned by institutional investors.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America raised its price target. BofA lifted its target from $130 to $150 and upgraded or reaffirmed the stock with a “Buy” rating, implying substantial upside from the referenced market level. Benzinga
• Positive Sentiment: Broader software-sector fears eased. Market commentary indicated that investors are moving away from the view that AI will make traditional enterprise software obsolete. This helped support ServiceNow and other major software stocks after a prolonged selloff. ServiceNow Leads a Software Rally
• Positive Sentiment: The Armis cybersecurity acquisition strengthens ServiceNow’s growth narrative. Coverage of the approximately $8 billion deal highlights its potential to expand ServiceNow’s AI-powered security platform and add preventive cyber-defense capabilities. ServiceNow Armis Acquisition
• Positive Sentiment: ServiceNow received additional bullish commentary. TD Cowen reiterated its “Buy” rating, while other analysts and market commentators pointed to the company’s recurring revenue, roughly 20%-plus growth profile and opportunities to monetize AI workflows. Why ServiceNow Stock Rallied
• Neutral Sentiment: New partnership expands the AI platform ecosystem. Tribal announced “Tribal for ServiceNow,” allowing enterprise teams to build and deploy AI agents within ServiceNow environments. The partnership may improve platform adoption, although its near-term financial impact is unclear. Tribal Partners with ServiceNow
• Negative Sentiment: AI-related business-model risks remain. Critics warn that AI could pressure per-seat software pricing if companies accomplish more work with fewer employees, potentially challenging long-term revenue growth. AI Risks to ServiceNow’s Business Model
• Negative Sentiment: Insider selling and acquisition execution risks remain overhangs. A director sold 1,500 shares under a pre-arranged Rule 10b5-1 plan, limiting its significance, while the Armis transaction creates integration and spending risks. ServiceNow Director Share Sale

ServiceNow Stock Up 6.5%

NOW opened at $127.22 on Thursday. The stock's fifty day simple moving average is $107.82 and its 200 day simple moving average is $105.49. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $194.73. The stock has a market cap of $131.54 billion, a PE ratio of 79.51, a price-to-earnings-growth ratio of 2.10 and a beta of 0.94. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43.

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

Analyst Upgrades and Downgrades

A number of research firms have recently commented on NOW. KeyCorp restated an "underweight" rating on shares of ServiceNow in a research note on Tuesday, July 21st. Capital One Financial lifted their target price on ServiceNow from $105.00 to $120.00 and gave the company an "overweight" rating in a research report on Tuesday, May 5th. Benchmark reiterated a "buy" rating on shares of ServiceNow in a report on Friday, July 17th. Sanford C. Bernstein reissued an "outperform" rating and set a $248.00 price target (up from $236.00) on shares of ServiceNow in a research report on Thursday, July 23rd. Finally, Jefferies Financial Group reaffirmed a "buy" rating and set a $140.00 price target (up from $135.00) on shares of ServiceNow 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 given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, ServiceNow has an average rating of "Moderate Buy" and an average target price of $144.24.

Insider Activity

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction dated Thursday, August 13th. The shares were 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 in the company, valued at approximately $5,864,264. This trade represents a 3.11% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.34% of the company's stock.

ServiceNow Company 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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