Parallel Advisors LLC Reduces Stake in ServiceNow, Inc. $NOW

Parallel Advisors LLC cut its position in shares of ServiceNow, Inc. (NYSE:NOW) by 18.5% in the 1st quarter, HoldingsChannel.com reports. The firm owned 20,346 shares of the information technology services provider’s stock after selling 4,608 shares during the period. Parallel Advisors LLC’s holdings in ServiceNow were worth $2,127,000 at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. increased its position in shares of ServiceNow by 404.5% in the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock valued at $15,619,771,000 after buying an additional 81,752,460 shares in the last quarter. State Street Corp raised its stake in shares of ServiceNow by 406.6% during the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock worth $7,337,280,000 after buying an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in shares of ServiceNow by 371.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock worth $4,962,692,000 after buying an additional 25,517,218 shares in the last quarter. Geode Capital Management LLC grew its stake in ServiceNow by 404.8% in the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after acquiring an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley grew its stake in ServiceNow by 335.6% in the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock valued at $3,482,543,000 after acquiring an additional 17,514,679 shares during the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s agentic-AI push is attracting attention as deployments reportedly grew ninefold over the past nine months. The company’s workflow and IT-management software is deeply embedded in large enterprises, potentially making it more likely to benefit from AI-driven automation than to be displaced by it. Why Is ServiceNow in Focus as Its Agentic AI Push Widens?
• Positive Sentiment: Investor commentary remains constructive following second-quarter results that exceeded expectations. Revenue rose about 24% year over year to approximately $4 billion, subscription growth remained strong, and full-year guidance was raised. These results support the view that AI monetization is beginning to complement ServiceNow’s core business. ServiceNow Stock Opinions on Q2 Earnings and AI Growth
• Positive Sentiment: Some analysts view the software sell-off as an opportunity to buy ServiceNow. Despite continued double-digit growth and strong free cash flow, the stock’s forward earnings multiple is described as being in the mid-20s, substantially below its historical valuation. ServiceNow: Why the Latest Quarter Is an Opportunity to Buy
• Neutral Sentiment: New partnerships and applications are expanding ServiceNow’s AI ecosystem, including healthcare administrative automation, fraud-and-abuse detection, and industrial security. These announcements may improve product adoption over time, but their near-term financial impact was not disclosed. Hyro Partners with ServiceNow
• Neutral Sentiment: Analyst opinions are mixed, though 29 recent price targets carry a median target of $134, above the reported trading level. Insider activity is also mixed: CEO William McDermott purchased shares, while several other executives sold stock. ServiceNow Stock Opinions on Q2 Earnings and AI Growth
• Negative Sentiment: ServiceNow is being pressured by a broad software-sector sell-off after Datadog and HubSpot results raised concerns about AI competition, pricing power, and future growth. Investors remain cautious that AI-native tools could eventually reduce demand for or pricing of traditional enterprise software. Software Stocks Fall as Earnings Raise Questions Over AI Pricing

ServiceNow Price Performance

ServiceNow stock opened at $117.31 on Friday. The stock has a market capitalization of $121.30 billion, a P/E ratio of 73.32, a P/E/G ratio of 2.06 and a beta of 0.94. ServiceNow, Inc. has a 12-month low of $81.24 and a 12-month high of $194.73. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. The firm’s 50-day moving average is $106.72 and its two-hundred day moving average is $105.73.

ServiceNow (NYSE:NOW) last posted its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. The business had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The company’s revenue was up 24.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.81 earnings per share. Equities analysts predict that ServiceNow, Inc. will post 2.24 earnings per share for the current year.

Insiders Place Their Bets

In other ServiceNow news, insider Paul Fipps sold 1,048 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the transaction, the insider owned 12,072 shares of the company’s stock, valued at $1,189,212.72. This represents a 7.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. 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, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the sale, the director owned 44,930 shares in the company, valued at $3,919,243.90. This trade represents a 3.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 18,993 shares of company stock valued at $1,716,436. Company insiders own 0.34% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have issued reports on NOW shares. Truist Financial lifted their target price on shares of ServiceNow from $120.00 to $130.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. BMO Capital Markets increased their price target on shares of ServiceNow from $115.00 to $118.00 and gave the company an “outperform” rating in a research report on Thursday, July 23rd. Weiss Ratings cut shares of ServiceNow from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, July 10th. DA Davidson set a $170.00 price objective on ServiceNow and gave the stock a “buy” rating in a research report on Monday, July 20th. Finally, UBS Group set a $248.00 target price on ServiceNow in a research note on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $143.39.

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.