ServiceNow, Inc. $NOW Position Raised by Rakuten Investment Management Inc.

Rakuten Investment Management Inc. boosted its holdings in ServiceNow, Inc. (NYSE:NOW) by 9.4% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 185,380 shares of the information technology services provider’s stock after purchasing an additional 15,853 shares during the quarter. Rakuten Investment Management Inc.’s holdings in ServiceNow were worth $24,088,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in NOW. A. D. Beadell Investment Counsel Inc. raised its holdings in ServiceNow by 2.9% during the second quarter. A. D. Beadell Investment Counsel Inc. now owns 2,818 shares of the information technology services provider’s stock worth $279,000 after purchasing an additional 80 shares in the last quarter. DUTCH ASSET Corp lifted its position in shares of ServiceNow by 0.5% during the 3rd quarter. DUTCH ASSET Corp now owns 16,331 shares of the information technology services provider’s stock worth $2,189,000 after buying an additional 82 shares during the last quarter. Atwood & Palmer Inc. lifted its position in shares of ServiceNow by 20.0% during the 2nd quarter. Atwood & Palmer Inc. now owns 600 shares of the information technology services provider’s stock worth $60,000 after buying an additional 100 shares during the last quarter. Diligent Investors LLC boosted its holdings in shares of ServiceNow by 4.1% in the 3rd quarter. Diligent Investors LLC now owns 2,560 shares of the information technology services provider’s stock valued at $343,000 after buying an additional 100 shares in the last quarter. Finally, Signature Wealth Management Partners LLC boosted its holdings in shares of ServiceNow by 3.3% in the 3rd quarter. Signature Wealth Management Partners LLC now owns 3,281 shares of the information technology services provider’s stock valued at $440,000 after buying an additional 106 shares in the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

NOW has been the topic of a number of recent analyst reports. Benchmark reaffirmed a “buy” rating on shares of ServiceNow in a research report on Friday, July 17th. CLSA initiated coverage on shares of ServiceNow in a research report on Monday, July 20th. They issued an “underperform” rating and a $72.00 price target for the company. Cantor Fitzgerald upped their price objective on shares of ServiceNow from $174.00 to $201.00 and gave the company an “overweight” rating in a research note on Monday, October 26th. Morgan Stanley restated an “overweight” rating and issued a $160.00 price objective on shares of ServiceNow in a research note on Thursday, October 29th. Finally, Argus reiterated a “buy” rating and set a $170.00 target price on shares of ServiceNow in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, ServiceNow presently has an average rating of “Moderate Buy” and a consensus price target of $154.50.

ServiceNow Stock Performance

Shares of NOW opened at $109.09 on Wednesday. The company’s 50 day simple moving average is $137.87 and its 200-day simple moving average is $115.16. The firm has a market cap of $113.24 billion, a PE ratio of 78.48, a price-to-earnings-growth ratio of 2.03 and a beta of 1.00. ServiceNow, Inc. has a 12-month low of $81.24 and a 12-month high of $181.73. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 0.42.

ServiceNow (NYSE:NOW) last released its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 EPS for the quarter, missing the consensus estimate of $1.02 by ($0.02). The business had revenue of $4.11 billion during the quarter, compared to analysts’ expectations of $4.09 billion. ServiceNow had a net margin of 9.36% and a return on equity of 15.17%. The firm’s revenue for the quarter was up 20.5% compared to the same quarter last year. During the same quarter last year, the company earned $4.82 EPS. As a group, equities analysts predict that ServiceNow, Inc. will post 2.13 EPS for the current year.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Argus reaffirmed its Buy rating and set a $170 price target, signaling confidence in ServiceNow’s recovery potential after the recent selloff. Argus rating and price target
• Positive Sentiment: ServiceNow’s enterprise AI push—including its Control Tower Alliance with major technology partners—could strengthen its role in helping companies deploy and govern AI. ServiceNow rolls out Control Tower Alliance
• Positive Sentiment: Recent commentary argues that the selloff may offer a buying opportunity, citing ServiceNow’s growth prospects and demand for AI-driven workflow tools. ServiceNow Stock: Buy the Dip?
• Neutral Sentiment: Q3 revenue was about $4.1 billion, slightly ahead of estimates, but the company is increasing AI-related investment and shifting toward outcome-based pricing—changes that could affect how growth and profitability develop. How Higher AI Spending Will Impact ServiceNow Stock
• Negative Sentiment: The sharp recent decline followed weaker fourth-quarter backlog guidance, which revived fears that AI could disrupt seat-based software models and weigh on future growth. ServiceNow’s selloff and Wall Street price-target cuts
• Negative Sentiment: Management’s AI investments and business-model changes pressured operating margins, adding to investor concerns despite revenue growth. Analyst questions from ServiceNow’s Q3 earnings call

Insider Transactions at ServiceNow

In related news, Director Paul Chamberlain sold 2,700 shares of the business’s stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $135.50, for a total value of $365,850.00. Following the transaction, the director owned 43,990 shares in the company, valued at $5,960,645. The trade was a 5.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Paul Fipps sold 2,034 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $147.87, for a total value of $300,767.58. Following the sale, the insider directly owned 18,305 shares of the company’s stock, valued at approximately $2,706,760.35. This represents a 10.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 14,081 shares of company stock worth $1,937,904. Company insiders own 0.34% of the company’s stock.

ServiceNow Company Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company’s products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.