Torray Investment Partners LLC Grows Stake in ServiceNow, Inc. $NOW

Key Points

• Torray Investment Partners LLC grew its stake in ServiceNow by 390.5% in Q4, adding 32,345 shares to hold 40,629 shares worth about $6.22 million.
• ServiceNow beat Q1 revenue estimates with $3.77 billion and ~22% YoY subscription growth and raised its annual subscription-revenue outlook on stronger AI demand, but warned the Armis acquisition and delayed Middle East deals will pressure margins (roughly 75 bps FY, 125 bps in Q2).
• Market reaction was negative: the stock slid to $86.71 amid higher short interest and multiple analyst price-target cuts (Goldman to $163), though the consensus remains a "Moderate Buy" with an average target of $155.86.

Torray Investment Partners LLC grew its stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 390.5% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 40,629 shares of the information technology services provider's stock after acquiring an additional 32,345 shares during the quarter. Torray Investment Partners LLC's holdings in ServiceNow were worth $6,224,000 as of its most recent SEC filing.

Several other large investors have also recently modified their holdings of NOW. Brighton Jones LLC grew its position in ServiceNow by 1.1% during the 4th 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 during the last quarter. Sivia Capital Partners LLC raised its holdings in ServiceNow by 4.2% in the second quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider's stock worth $861,000 after buying an additional 34 shares during the last quarter. United Bank lifted its stake in shares of ServiceNow by 15.5% in the second quarter. United Bank now owns 1,519 shares of the information technology services provider's stock worth $1,562,000 after buying an additional 204 shares in the last quarter. Riggs Asset Managment Co. Inc. grew its holdings in shares of ServiceNow by 2.2% during the second 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 shares of ServiceNow by 205.1% during the second quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider's stock valued at $931,000 after acquiring an additional 609 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently issued reports on NOW. The Goldman Sachs Group lowered their price objective on ServiceNow from $188.00 to $163.00 and set a "buy" rating on the stock in a research report on Thursday. Robert W. Baird dropped their price objective on ServiceNow from $125.00 to $118.00 and set an "outperform" rating on the stock in a research report on Thursday. Benchmark initiated coverage on ServiceNow in a report on Wednesday, April 1st. They issued a "buy" rating and a $125.00 price objective for the company. Truist Financial cut their price objective on ServiceNow from $125.00 to $120.00 and set a "buy" rating for the company in a report on Thursday. Finally, Needham & Company LLC reduced their price objective on ServiceNow from $155.00 to $115.00 and set a "buy" rating for the company in a research report on Thursday. Three analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, ServiceNow presently has a consensus rating of "Moderate Buy" and an average price target of $155.86.

ServiceNow Stock Performance

Shares of NYSE:NOW traded down $16.36 during midday trading on Thursday, hitting $86.71. The company had a trading volume of 17,589,364 shares, compared to its average volume of 20,024,004. ServiceNow, Inc. has a 12-month low of $81.24 and a 12-month high of $211.48. The company has a fifty day moving average of $105.55 and a two-hundred day moving average of $138.83. The company has a market cap of $89.84 billion, a price-to-earnings ratio of 52.17, a PEG ratio of 1.68 and a beta of 1.01. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.00.

ServiceNow (NYSE:NOW - Get Free Report) last released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting the consensus estimate of $0.97. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The company had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. During the same period in the previous year, the business earned $4.04 earnings per share. ServiceNow's quarterly revenue was up 22.1% compared to the same quarter last year. On average, equities research analysts expect that ServiceNow, Inc. will post 2.49 EPS for the current fiscal year.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 subscription revenue and top-line: Subscription revenue grew ~22% YoY and overall Q1 revenue slightly beat consensus, showing continued demand for ServiceNow’s AI-driven platform. BusinessWire Q1 Release
• Positive Sentiment: Company raised its annual subscription revenue outlook, citing stronger AI adoption — a sign management sees sustainable demand for Now Assist and related products. Reuters: Boosts Outlook
• Neutral Sentiment: Strategic moves: ServiceNow closed the Armis acquisition to expand into OT/IoT/cyber asset visibility and announced deeper Google Cloud AI integrations — positive long-term product synergy but with short-term execution risk. Yahoo: Google Cloud Partnership
• Neutral Sentiment: Management tone and events calendar: CEO emphasized AI-driven productivity and an Analyst Day is scheduled for May 4 — useful for forward guidance clarity. Investors.com: Analyst Day
• Negative Sentiment: Middle East deal delays: Management said delayed large deals in the Middle East created ~75 bps of subscription-revenue headwind in Q1 and could push some closures into later quarters — an immediate growth and sentiment headwind. Yahoo: Deal Delays
• Negative Sentiment: Margins to be pressured by Armis purchase: ServiceNow warned the acquisition will create a roughly 75‑bp FY operating-margin headwind (125 bps in Q2), which contributed to investor concern about near-term profitability. WSJ: Armis Margin Impact
• Negative Sentiment: Market reaction and analyst moves: Despite the beat, sentiment soured — multiple shops trimmed price targets and the stock drew higher short interest amid broader AI/disruption worries, amplifying the selloff. Finviz: Analyst PT Cuts Reuters: Short Interest

Insider Activity

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total transaction of $151,755.00. Following the sale, the director owned 46,430 shares in the company, valued at approximately $4,697,323.10. This trade represents a 3.13% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Paul Fipps sold 9,641 shares of ServiceNow stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $105.93, for a total transaction of $1,021,271.13. Following the transaction, the insider directly owned 11,757 shares in the company, valued at $1,245,419.01. This represents a 45.06% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 16,237 shares of company stock valued at $1,697,162 in the last ninety days. 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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