Twin Lakes Capital Management LLC Acquires 23,569 Shares of ServiceNow, Inc. $NOW

Key Points

• Twin Lakes Capital Management increased its ServiceNow stake by 89% in the first quarter, adding 23,569 shares to own 50,054 shares worth approximately $5.23 million. Institutional investors collectively own 87.18% of the stock.
• ServiceNow reported quarterly EPS of $0.90 and revenue of $3.99 billion, exceeding estimates, while revenue grew 24% year over year. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $143.39.
• The company’s agentic-AI and cybersecurity offerings are viewed as growth drivers, but its premium valuation, restructuring-related job cuts and recent insider sales present potential risks.

Twin Lakes Capital Management LLC lifted its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 89.0% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 50,054 shares of the information technology services provider's stock after buying an additional 23,569 shares during the quarter. ServiceNow comprises approximately 2.0% of Twin Lakes Capital Management LLC's investment portfolio, making the stock its 12th biggest holding. Twin Lakes Capital Management LLC's holdings in ServiceNow were worth $5,233,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of NOW. Vanguard Group Inc. raised its position in shares of ServiceNow by 404.5% during the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock valued at $15,619,771,000 after acquiring an additional 81,752,460 shares during the last quarter. State Street Corp grew its stake in shares of ServiceNow by 406.6% during the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock worth $7,337,280,000 after purchasing an additional 38,441,898 shares during the period. Price T Rowe Associates Inc. MD grew its stake in shares of ServiceNow by 371.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock worth $4,962,692,000 after purchasing an additional 25,517,218 shares during the period. Geode Capital Management LLC increased its holdings in ServiceNow by 404.8% in the fourth 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 purchasing an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley lifted its stake in ServiceNow by 335.6% in the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock valued at $3,482,543,000 after buying an additional 17,514,679 shares during the period. 87.18% of the stock is owned by institutional investors.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: CEO Bill McDermott said ServiceNow has a “kill switch” and other controls that can stop autonomous AI agents if they behave unexpectedly. The comments may ease concerns about enterprise AI safety and support adoption of ServiceNow’s agentic-AI products. ServiceNow CEO admits there's a solution to AI's biggest problem
• Positive Sentiment: Analysts and industry coverage point to accelerating customer adoption of agentic AI, expanding AI products and workflow automation as potential drivers of ServiceNow’s next phase of growth. Recent quarterly results—24% year-over-year revenue growth, revenue and earnings above estimates, and raised guidance—provide support for the bullish thesis. Can Agentic AI Adoption Fuel ServiceNow's Next Phase of Growth?
• Positive Sentiment: ServiceNow is also being viewed as more than an AI software stock: its expanding cybersecurity business could become another meaningful growth engine. Shares were reported to be holding above key moving averages, reinforcing near-term investor momentum. ServiceNow’s Q2 Earnings Showed It’s More Than an AI Stock
• Neutral Sentiment: Several valuation articles describe NOW as attractive because of its growth and AI exposure, while comparisons with peers such as Salesforce highlight that the stock still trades at a premium. That premium could limit upside if growth expectations weaken. ServiceNow Vs. Salesforce: The Valuation Gap Has Closed, But The Growth Gap Hasn't
• Negative Sentiment: ServiceNow cut hundreds of jobs as part of a global restructuring and increased efficiency focus. The reductions may improve costs, but they also underscore broader software-sector pressure and potential execution risks during the company’s AI transition. ServiceNow cut hundreds of jobs to streamline operations

Insider Activity at ServiceNow

In other news, insider Paul Fipps sold 1,048 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $98.51, for a total value of $103,238.48. Following the completion of the sale, the insider owned 12,072 shares of the company's stock, valued at approximately $1,189,212.72. This represents a 7.99% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Anita M. Sands sold 16,445 shares of the business's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 19,144 shares of company stock valued at $1,730,097. 0.34% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Deutsche Bank Aktiengesellschaft reduced their target price on ServiceNow from $180.00 to $135.00 and set a "buy" rating on the stock in a report on Thursday, April 16th. Wells Fargo & Company cut their price target on shares of ServiceNow from $185.00 to $160.00 and set an "overweight" rating on the stock in a research report on Thursday, April 23rd. DA Davidson set a $170.00 price objective on shares of ServiceNow and gave the stock a "buy" rating in a research note on Monday, July 20th. Sanford C. Bernstein restated an "outperform" rating and set a $248.00 price objective (up from $236.00) on shares of ServiceNow in a report on Thursday, July 23rd. Finally, BTIG Research reaffirmed a "buy" rating and issued a $150.00 target price on shares of ServiceNow in a research note on Wednesday, July 22nd. 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 assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $143.39.

ServiceNow Trading Up 4.6%

NYSE NOW opened at $115.71 on Thursday. ServiceNow, Inc. has a one year low of $81.24 and a one year high of $198.61. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. The firm has a market cap of $119.64 billion, a P/E ratio of 72.32, a P/E/G ratio of 1.95 and a beta of 0.96. The stock's 50-day moving average is $105.24 and its 200-day moving average is $106.62.

ServiceNow (NYSE:NOW - Get Free Report) last issued 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 business had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.ServiceNow's quarterly revenue was up 24.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.81 EPS. Sell-side analysts anticipate that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

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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