South Dakota Investment Council lifted its position in ServiceNow, Inc. (NYSE:NOW – Free Report) by 2,076.9% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 76,192 shares of the information technology services provider’s stock after acquiring an additional 72,692 shares during the period. South Dakota Investment Council’s holdings in ServiceNow were worth $7,966,000 as of its most recent SEC filing.
A number of other large investors have also made changes to their positions in the company. Covenant Asset Management LLC increased its holdings in shares of ServiceNow by 169.2% in the fourth quarter. Covenant Asset Management LLC now owns 20,863 shares of the information technology services provider’s stock valued at $3,196,000 after purchasing an additional 13,114 shares during the period. Norges Bank purchased a new position in ServiceNow in the 4th quarter valued at $2,020,992,000. World Investment Advisors increased its stake in 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 $7,346,000 after buying an additional 38,583 shares during the period. Cohen Klingenstein LLC increased its stake in ServiceNow by 400.0% in the 4th quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider’s stock valued at $1,532,000 after buying an additional 8,000 shares during the period. Finally, Moors & Cabot Inc. raised its position in ServiceNow by 387.7% during the 4th quarter. Moors & Cabot Inc. now owns 45,630 shares of the information technology services provider’s stock worth $6,990,000 after buying an additional 36,274 shares during the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.
Key ServiceNow News
Here are the key news stories impacting ServiceNow this week:
- Positive Sentiment: ServiceNow’s latest quarterly results showed continued momentum: revenue rose 24% year over year to approximately $4 billion, while adjusted earnings exceeded consensus expectations. Management also raised guidance, and AI-related contract value surpassed $1 billion ahead of internal targets. ServiceNow Stock Opinions on Q2 Earnings Results
- Positive Sentiment: Analysts and investors remain constructive on ServiceNow’s workflow-automation and agentic-AI opportunity. An investment analysis cited accelerating user retention, pricing power, a growing security and risk business, and a long-term target of $30 billion to $32 billion in subscription revenue by 2030. The analysis raised its fair-value estimate to $160. ServiceNow User Retention Is Accelerating
- Positive Sentiment: Dynamic Lifecycle Innovations launched a new application on the ServiceNow platform for IT asset disposition, expanding the company’s partner ecosystem and demonstrating additional use cases for its workflow technology. Dynamic Lifecycle Innovations Launches New ServiceNow App
- Neutral Sentiment: ServiceNow’s valuation remains a major debate. The stock is well below its recent highs, while the average analyst price target is around $140 and a separate survey reports a $134 median target, indicating substantial potential upside but also skepticism about how quickly AI growth will translate into results. ServiceNow Showing Signs of Life
- Negative Sentiment: ServiceNow could eliminate up to 1,000 positions this year as part of a planned “rightsizing” effort following a series of acquisitions. Reports of continuing layoffs and employee frustration may weigh on sentiment, even though the reductions could eventually improve operating efficiency and offset acquisition-related costs. ServiceNow to Cut Up to 1,000 Jobs
- Negative Sentiment: Recent insider activity has been mixed but skewed toward selling, with nine sales versus two purchases over the past six months. Several senior executives sold shares, although CEO Bill McDermott was reported to have purchased shares. This is a secondary signal, but it may reinforce cautious sentiment.
ServiceNow Stock Down 4.8%
ServiceNow (NYSE:NOW – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The company had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same period in the previous year, the firm posted $0.81 EPS. ServiceNow’s revenue was up 24.0% on a year-over-year basis. As a group, sell-side analysts expect that ServiceNow, Inc. will post 2.24 EPS for the current year.
Insider Activity at ServiceNow
In other ServiceNow news, Director Anita M. Sands sold 16,445 shares of the firm’s stock in a transaction dated 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 sale, the director directly owned 30,090 shares of the company’s stock, valued at approximately $2,712,312.60. This trade represents a 35.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction dated Monday, May 18th. The shares were 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 $1,189,212.72. This trade represents a 7.99% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last ninety days, insiders sold 19,144 shares of company stock worth $1,730,097. 0.34% of the stock is currently owned by insiders.
Wall Street Analysts Forecast Growth
NOW has been the topic of several analyst reports. Capital One Financial lifted their target price on shares of ServiceNow from $105.00 to $120.00 and gave the company an “overweight” rating in a report on Tuesday, May 5th. Evercore reissued an “outperform” rating and set a $160.00 price target on shares of ServiceNow in a report on Thursday, July 23rd. JPMorgan Chase & Co. raised their price objective on shares of ServiceNow from $145.00 to $150.00 and gave the company an “overweight” rating in a research report on Thursday, July 23rd. Deutsche Bank Aktiengesellschaft lowered their price objective on ServiceNow from $180.00 to $135.00 and set a “buy” rating on the stock in a report on Thursday, April 16th. Finally, Stifel Nicolaus decreased their price target on ServiceNow from $135.00 to $120.00 and set a “buy” rating on the stock in a research note on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $143.39.
Read Our Latest Research Report on ServiceNow
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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