WD Rutherford LLC Increases Stake in ServiceNow, Inc. $NOW

Key Points

• WD Rutherford LLC increased its ServiceNow stake by 301.2% in the fourth quarter, and several other hedge funds also boosted their positions. Institutional investors now own 87.18% of the stock.
• ServiceNow reported Q1 earnings of $0.97 per share, matching estimates, while revenue rose 22.1% year over year to $3.77 billion and slightly beat expectations. Analysts still expect $2.35 EPS for the full fiscal year.
• The company has been in focus for AI and automation partnership expansions, including deals with Experian, Accenture, and FedEx Dataworks, while analysts remain generally positive with a Moderate Buy consensus and a $144.71 average price target.

WD Rutherford LLC raised its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 301.2% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 19,642 shares of the information technology services provider's stock after buying an additional 14,746 shares during the period. WD Rutherford LLC's holdings in ServiceNow were worth $3,009,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Cohen Klingenstein LLC boosted its holdings in ServiceNow by 400.0% in the fourth quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider's stock valued at $1,532,000 after purchasing an additional 8,000 shares during the period. World Investment Advisors lifted its holdings in shares of ServiceNow by 411.7% in the 4th quarter. World Investment Advisors now owns 47,955 shares of the information technology services provider's stock valued at $7,218,000 after purchasing an additional 38,583 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its holdings in shares of ServiceNow by 385.9% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider's stock valued at $398,202,000 after purchasing an additional 2,064,440 shares during the last quarter. Torray Investment Partners LLC lifted its holdings in shares of ServiceNow by 390.5% in the 4th quarter. Torray Investment Partners LLC now owns 40,629 shares of the information technology services provider's stock valued at $6,224,000 after purchasing an additional 32,345 shares during the last quarter. Finally, Jennison Associates LLC grew its holdings in shares of ServiceNow by 280.1% in the 4th quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider's stock worth $1,291,758,000 after acquiring an additional 6,213,762 shares during the period. 87.18% of the stock is owned by hedge funds and other institutional investors.

ServiceNow Stock Up 0.1%

Shares of NOW stock opened at $95.15 on Monday. The firm has a fifty day moving average of $100.52 and a 200-day moving average of $128.64. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13. ServiceNow, Inc. has a 12-month low of $81.24 and a 12-month high of $211.48. The company has a market capitalization of $98.10 billion, a price-to-earnings ratio of 56.71, a P/E/G ratio of 1.61 and a beta of 0.82.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The company had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.75 billion. During the same quarter in the prior year, the firm earned $0.81 earnings per share. The firm's revenue was up 22.1% compared to the same quarter last year. As a group, equities research analysts predict that ServiceNow, Inc. will post 2.35 earnings per share for the current fiscal year.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, insider Jacqueline P. Canney sold 8,927 shares of ServiceNow stock in a transaction on Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the sale, the insider directly owned 29,531 shares in the company, valued at approximately $2,645,977.60. The trade was a 23.21% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Paul Fipps sold 3,696 shares of ServiceNow stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $101.77, for a total transaction of $376,141.92. Following the completion of the sale, the insider owned 8,061 shares in the company, valued at $820,367.97. The trade was a 31.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 22,415 shares of company stock worth $2,210,933 over the last quarter. Company insiders own 0.34% of the company's stock.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow and Experian announced a new multi-year global partnership to embed autonomous AI capabilities into workflows such as employee onboarding and third-party risk management, which could deepen platform adoption and expand use cases. Experian Partners With ServiceNow to Scale Trusted Decisioning to Agentic AI
• Positive Sentiment: ServiceNow also expanded AI and automation partnerships with Accenture and FedEx Dataworks, signaling stronger enterprise demand for its workflow platform and potential conversion of pilot projects into full production deployments. ServiceNow AI Partnerships Aim To Turn Pilot Projects Into Core Workflows
• Positive Sentiment: The company completed a $4 billion multi-tranche debt offering, which should improve financing flexibility even though it increases leverage. ServiceNow Completes $4 Billion Multi-Tranche Debt Offering
• Neutral Sentiment: Commentary from analysts highlights ServiceNow’s expanding customer base, 22% subscription revenue growth, and strong remaining performance obligations visibility, reinforcing expectations for continued top-line growth. Can an Expanding Clientele Boost ServiceNow's Top-Line Growth?
• Negative Sentiment: Some market coverage and options activity suggest the stock has been under pressure recently, reflecting lingering concerns about valuation and post-earnings weakness. See ServiceNow Stock Heading Lower? This Trade Profits From Further Downside.

Analysts Set New Price Targets

A number of brokerages have weighed in on NOW. Royal Bank Of Canada reissued an "outperform" rating and set a $121.00 price target on shares of ServiceNow in a research note on Tuesday, May 5th. JPMorgan Chase & Co. decreased their price target on ServiceNow from $195.00 to $145.00 and set an "overweight" rating for the company in a research note on Thursday, April 23rd. Jefferies Financial Group reissued a "buy" rating and set a $135.00 target price (down from $175.00) on shares of ServiceNow in a report on Thursday, April 23rd. Wells Fargo & Company dropped their price target on ServiceNow from $185.00 to $160.00 and set an "overweight" rating on the stock in a report on Thursday, April 23rd. Finally, BMO Capital Markets cut their target price on shares of ServiceNow from $120.00 to $115.00 and set an "outperform" rating for the company in a research report on Thursday, April 23rd. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, ServiceNow currently has a consensus rating of "Moderate Buy" and a consensus price target of $144.71.

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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