Waterloo Capital L.P. Raises Stock Position in ServiceNow, Inc. $NOW

Key Points

• Waterloo Capital L.P. boosted its ServiceNow stake by 384.1% in the fourth quarter, ending with 20,095 shares worth about $3.08 million.
• ServiceNow reported quarterly earnings of $0.97 per share, matching estimates, while revenue of $3.77 billion slightly topped expectations and rose 22.1% year over year.
• Analyst sentiment remains positive, with a Moderate Buy consensus and an average price target of $141.85, even as some insiders have recently sold shares.

Waterloo Capital L.P. lifted its stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 384.1% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 20,095 shares of the information technology services provider's stock after buying an additional 15,944 shares during the quarter. Waterloo Capital L.P.'s holdings in ServiceNow were worth $3,078,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of NOW. Meridian Wealth Advisors LLC increased its holdings in shares of ServiceNow by 2.2% in the 3rd quarter. Meridian Wealth Advisors LLC now owns 552 shares of the information technology services provider's stock valued at $508,000 after acquiring an additional 12 shares during the period. Valley Brook Capital Group Inc. increased its holdings in shares of ServiceNow by 2.1% in the 3rd quarter. Valley Brook Capital Group Inc. now owns 634 shares of the information technology services provider's stock valued at $583,000 after acquiring an additional 13 shares during the period. Catalyst Financial Partners LLC increased its holdings in shares of ServiceNow by 1.0% in the 3rd quarter. Catalyst Financial Partners LLC now owns 1,270 shares of the information technology services provider's stock valued at $1,169,000 after acquiring an additional 13 shares during the period. JT Stratford LLC increased its holdings in shares of ServiceNow by 3.5% in the 3rd quarter. JT Stratford LLC now owns 385 shares of the information technology services provider's stock valued at $354,000 after acquiring an additional 13 shares during the period. Finally, Abbot Financial Management Inc. increased its holdings in shares of ServiceNow by 2.9% in the 3rd quarter. Abbot Financial Management Inc. now owns 502 shares of the information technology services provider's stock valued at $462,000 after acquiring an additional 14 shares during the period. Hedge funds and other institutional investors own 87.18% of the company's stock.

ServiceNow Stock Performance

Shares of NOW opened at $124.56 on Friday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The stock has a market capitalization of $128.42 billion, a P/E ratio of 74.23, a P/E/G ratio of 2.06 and a beta of 0.82. The company's fifty day moving average is $98.05 and its two-hundred day moving average is $123.74. ServiceNow, Inc. has a 1 year low of $81.24 and a 1 year high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.97. The company had revenue of $3.77 billion for the quarter, compared to analysts' expectations of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. ServiceNow's revenue was up 22.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.81 EPS. On average, sell-side analysts predict that ServiceNow, Inc. will post 2.36 earnings per share for the current year.

Insider Activity

In other ServiceNow news, insider Paul Fipps sold 1,048 shares of the business's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $98.51, for a total value of $103,238.48. Following the transaction, the insider directly owned 12,072 shares of the company's stock, valued at approximately $1,189,212.72. The trade was a 7.99% decrease in their position. The sale 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, insider Jacqueline P. Canney sold 8,927 shares of the business's stock in a transaction on Friday, April 24th. The shares were sold at an average price of $89.60, for a total transaction of $799,859.20. Following the completion of the transaction, the insider directly owned 29,531 shares in the company, valued at $2,645,977.60. This represents a 23.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 28,071 shares of company stock valued at $2,529,956. 0.34% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. DA Davidson reaffirmed a "buy" rating and issued a $190.00 target price on shares of ServiceNow in a report on Tuesday, May 5th. Truist Financial cut their target price on shares of ServiceNow from $125.00 to $120.00 and set a "buy" rating on the stock in a report on Thursday, April 23rd. FBN Securities cut their target price on shares of ServiceNow from $160.00 to $120.00 in a report on Thursday, April 23rd. Bank of America assumed coverage on shares of ServiceNow in a report on Monday, May 18th. They issued a "buy" rating and a $130.00 target price on the stock. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $115.00 target price on shares of ServiceNow in a report on Tuesday, May 5th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, ServiceNow currently has a consensus rating of "Moderate Buy" and an average target price of $141.85.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is benefiting from a sector-wide rebound in software stocks after Snowflake’s strong earnings suggested AI is more of an opportunity than a threat for enterprise platforms. ServiceNow (NOW) Stock Trades Up, Here Is Why
• Positive Sentiment: Investors are also responding to ServiceNow’s expanding AI narrative, including its position as a key platform for agentic AI workflows and enterprise automation. ServiceNow's stock soars toward historic month as AI fears fade across software
• Positive Sentiment: Coverage calling ServiceNow a buy at current levels and setting a higher price target is adding to the bullish sentiment around the stock’s valuation reset. Buy, Hold, or Sell: Is This Cloud Automation Juggernaut a Steal Following Its Massive Valuation Reset?
• Positive Sentiment: Momentum from partnerships and AI-related headlines, including Wipro’s expanded ServiceNow collaboration, is reinforcing the company’s relevance in enterprise automation. Wipro stock gains 4%: can its ServiceNow tie-up drive growth?
• Neutral Sentiment: Unusually high options activity suggests traders are positioning for continued volatility in ServiceNow shares. ServiceNow Sees Unusually High Options Volume NYSE: NOW

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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