Yousif Capital Management LLC Increases Position in ServiceNow, Inc. $NOW

Key Points

• Yousif Capital Management raised its stake in ServiceNow by 358.3% to 109,568 shares (worth $16.8M), and several other institutions also materially increased positions, leaving 87.18% of the stock held by hedge funds and institutional investors.
• ServiceNow beat Q4 estimates with $0.92 EPS vs. $0.89 and revenue of $3.57B (up 20.7% YoY), yet the shares trade near a one‑year low (~$100) while analysts have trimmed targets; the consensus rating remains a Moderate Buy with an average target of $187.46.
• Near‑term sentiment is mixed: commercial wins and partner expansion (eg, DXC deal and new AI-native partners) support growth, but recent price‑target cuts, insider selling and scrutiny over a CEO pay increase present headwinds for the stock.

Yousif Capital Management LLC lifted its position in ServiceNow, Inc. (NYSE:NOW - Free Report) by 358.3% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 109,568 shares of the information technology services provider's stock after purchasing an additional 85,659 shares during the period. Yousif Capital Management LLC's holdings in ServiceNow were worth $16,785,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Cohen Klingenstein LLC lifted its holdings in shares of ServiceNow by 400.0% in the 4th quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider's stock worth $1,532,000 after acquiring an additional 8,000 shares during the last quarter. Focus Financial Network Inc. lifted its holdings in shares of ServiceNow by 286.1% in the 4th quarter. Focus Financial Network Inc. now owns 53,650 shares of the information technology services provider's stock worth $8,219,000 after acquiring an additional 39,756 shares during the last quarter. Brookstone Capital Management lifted its holdings in shares of ServiceNow by 428.0% in the 4th quarter. Brookstone Capital Management now owns 91,158 shares of the information technology services provider's stock worth $13,964,000 after acquiring an additional 73,894 shares during the last quarter. Beacon Investment Advisory Services Inc. lifted its holdings in shares of ServiceNow by 299.4% in the 4th quarter. Beacon Investment Advisory Services Inc. now owns 49,283 shares of the information technology services provider's stock worth $7,550,000 after acquiring an additional 36,944 shares during the last quarter. Finally, Legacy Wealth Asset Management LLC lifted its holdings in shares of ServiceNow by 428.0% in the 4th quarter. Legacy Wealth Asset Management LLC now owns 11,610 shares of the information technology services provider's stock worth $1,779,000 after acquiring an additional 9,411 shares during the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

ServiceNow Trading Down 2.0%

Shares of NOW opened at $100.36 on Wednesday. ServiceNow, Inc. has a 1-year low of $98.00 and a 1-year high of $211.48. The company has a 50-day moving average of $109.13 and a 200 day moving average of $145.54. The firm has a market capitalization of $104.97 billion, a price-to-earnings ratio of 60.17, a PEG ratio of 1.71 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 announced its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, beating analysts' consensus estimates of $0.89 by $0.03. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The company had revenue of $3.57 billion during the quarter, compared to analyst estimates of $3.53 billion. During the same quarter last year, the business posted $0.73 EPS. The firm's revenue for the quarter was up 20.7% on a year-over-year basis. On average, research analysts expect that ServiceNow, Inc. will post 8.93 EPS for the current year.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Robert W. Baird set a $175.00 target price on shares of ServiceNow in a report on Thursday, January 29th. HSBC lowered their target price on shares of ServiceNow from $266.40 to $226.00 and set a "buy" rating for the company in a report on Friday, January 30th. Cantor Fitzgerald restated an "overweight" rating and issued a $200.00 target price on shares of ServiceNow in a report on Thursday, January 29th. BTIG Research lowered their target price on shares of ServiceNow from $200.00 to $185.00 and set a "buy" rating for the company in a report on Tuesday. Finally, KeyCorp lowered their target price on shares of ServiceNow from $155.00 to $115.00 and set an "underweight" rating for the company in a report on Thursday, January 29th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $187.46.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: DXC announced a multi-year agreement to use the ServiceNow AI Platform to accelerate enterprise AI adoption and modernization — a material commercial win that supports pipeline and long-term revenue scaling. DXC Partners with ServiceNow
• Positive Sentiment: Naitiv launched as an AI-native ServiceNow consultancy led by former ServiceNow executives; the new partner targets insurance-scale AI transformations, expanding the ServiceNow partner ecosystem and potential implementation demand. Naitiv Launches
• Positive Sentiment: CNBC’s Trade Tracker shows portfolio manager Stephanie Link buying more ServiceNow — a visible buy by an active manager that can signal conviction to other investors. Trade Tracker: Stephanie Link buys
• Neutral Sentiment: Coverage pieces (Yahoo/Seeking Alpha/MSN) debate whether the pullback makes NOW undervalued — these analyses keep the valuation discussion top-of-mind for investors but don't move fundamentals immediately. Assessing Whether ServiceNow Still Looks Undervalued
• Neutral Sentiment: Commentary notes value managers are still holding names like ServiceNow despite AI-related concerns — a signal that some long-term holders remain, which can limit downside but also slow rebounds. Value investors still holding
• Negative Sentiment: BTIG trimmed its price target to $185 from $200 while keeping a Buy — the cut signals analyst scrutiny of FY26 revenue guidance and reduces the cushion investors price in. BTIG price target cut
• Negative Sentiment: Goldman Sachs lowered its target from $216 to $188 while maintaining a Buy — another large-house reduction that can pressure sentiment and amplify selling from momentum-focused investors. Goldman Sachs adjusts price target
• Negative Sentiment: Stifel and other outlets have become more cautious (while some keep Buy ratings), highlighting near-term execution and AI revenue-mix risk — a tone shift that can reduce conviction among shorter-term holders. Why Stifel Turned More Cautious
• Negative Sentiment: Report that CEO compensation jumped nearly 40% in 2025 (The Information) may create governance/optics concerns for some institutional holders. CEO compensation jump

Insider Activity at ServiceNow

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $101.17, for a total transaction of $151,755.00. Following the transaction, the director owned 46,430 shares of the company's stock, valued at approximately $4,697,323.10. This trade represents a 3.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Paul Fipps sold 3,696 shares of the firm's stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $101.77, for a total transaction of $376,141.92. Following the transaction, the insider directly owned 8,061 shares in the company, valued at $820,367.97. This trade represents a 31.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 16,237 shares of company stock worth $1,697,162 in the last 90 days. 0.34% of the stock is owned by corporate insiders.

ServiceNow 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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