Waterway Wealth Management LLC Acquires New Stake in ServiceNow, Inc. $NOW

Key Points

• Waterway Wealth Management LLC opened a new position in ServiceNow during the first quarter, buying 12,191 shares valued at about $1.275 million.
• ServiceNow’s recent results showed solid revenue growth, with quarterly revenue of $3.77 billion, up 22.1% year over year, and earnings per share matching analyst expectations at $0.97.
• The stock has been under pressure despite positive business developments, with shares recently down and insider selling adding to the cautious tone; meanwhile, analysts still hold a Moderate Buy consensus with a $142.17 average price target.

Waterway Wealth Management LLC acquired a new position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) in the first quarter, according to the company in its most recent filing with the SEC. The firm acquired 12,191 shares of the information technology services provider's stock, valued at approximately $1,275,000.

Several other institutional investors have also recently added to or reduced their stakes in NOW. IAG Wealth Partners LLC grew its holdings in shares of ServiceNow by 200.0% during the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after buying an additional 18 shares in the last quarter. Noble Wealth Management PBC lifted its stake in shares of ServiceNow by 400.0% during the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock valued at $25,000 after buying an additional 128 shares during the period. Millstone Evans Group LLC lifted its stake in shares of ServiceNow by 400.0% during the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock valued at $25,000 after buying an additional 132 shares during the period. CBIZ Investment Advisory Services LLC boosted its position in ServiceNow by 540.0% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 135 shares during the last quarter. Finally, Blueline Advisors LLC acquired a new stake in ServiceNow during the fourth quarter worth approximately $25,000. Institutional investors and hedge funds own 87.18% of the company's stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow was highlighted in a bullish article arguing that the company is executing well operationally and that its stock may be trading at a discount, which could support a re-rating if investors regain confidence. ServiceNow: An Excellent Business Trading at a Discount
• Positive Sentiment: Several articles pointed to expanding AI-related partnerships and governance use cases, including integrations with HCLTech, Google Cloud, and Microsoft-adjacent enterprise workflows, reinforcing ServiceNow’s position in enterprise AI automation. HCLTech Deepens Google Cloud–ServiceNow Alliance to Scale Enterprise AI Agents
• Positive Sentiment: New partnerships around AI governance and public sector modernization suggest ServiceNow is still broadening its addressable market and deepening product relevance in regulated enterprise environments. ServiceNow (NOW) Expands AI Governance And Public Sector Reach With New Partnerships
• Neutral Sentiment: A comparison piece on Salesforce and ServiceNow noted that ServiceNow continues to post steadier revenue gains, but the article was more informational than a direct catalyst for the stock. Salesforce vs. ServiceNow: What Do Their Revenue Trends Tell Investors?
• Negative Sentiment: Recent market coverage noted that ServiceNow has been slipping alongside a broader tech pullback, and some commentary specifically linked the weakness to investor concerns about AI-related expectations and valuation. ServiceNow (NOW) Dips More Than Broader Market: What You Should Know
• Negative Sentiment: The stock has also been described as falling despite strong earnings, indicating that investors may be focusing more on macro pressure and sentiment than on the company’s fundamentals. AI Concerns Hurt ServiceNow (NOW) Despite Strong Earnings

Insider Buying and Selling at ServiceNow

In related news, Director Anita M. Sands sold 16,445 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the sale, the director directly owned 30,090 shares in the company, valued at approximately $2,712,312.60. This represents a 35.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $87.23, for a total value of $130,845.00. Following the completion of the transaction, the director directly owned 44,930 shares in the company, valued at $3,919,243.90. This trade represents a 3.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 28,071 shares of company stock worth $2,529,956. 0.34% of the stock is currently owned by insiders.

ServiceNow Trading Down 4.5%

NYSE NOW opened at $89.59 on Friday. ServiceNow, Inc. has a one year low of $81.24 and a one year high of $211.48. The company's 50 day moving average price is $100.01 and its 200 day moving average price is $115.39. 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 firm has a market capitalization of $92.37 billion, a price-to-earnings ratio of 53.39, a PEG ratio of 1.56 and a beta of 0.94.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting analysts' consensus estimates of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm had revenue of $3.77 billion for the quarter, compared to analysts' expectations of $3.75 billion. During the same period in the previous year, the company posted $0.81 earnings per share. ServiceNow's revenue was up 22.1% compared to the same quarter last year. On average, sell-side analysts predict that ServiceNow, Inc. will post 2.34 EPS for the current year.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on NOW shares. DA Davidson reiterated a "buy" rating and issued a $190.00 price target on shares of ServiceNow in a report on Tuesday, May 5th. Morgan Stanley decreased their price objective on ServiceNow from $210.00 to $180.00 and set an "overweight" rating on the stock in a report on Thursday, April 23rd. Barclays reaffirmed an "overweight" rating and issued a $134.00 price objective (up from $132.00) on shares of ServiceNow in a research report on Tuesday, May 5th. Citizens Jmp reaffirmed a "market outperform" rating and set a $157.00 price objective on shares of ServiceNow in a research note on Tuesday, May 5th. Finally, Truist Financial decreased their price target 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. One analyst has rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, ServiceNow presently has a consensus rating of "Moderate Buy" and a consensus price target of $142.17.

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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