ServiceNow, Inc.

🇺🇸New York Stock Exchange
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ServiceNow, Inc. stock analysis NOW overview
Somewhat Bullish +45

Brookstone Capital Management Raises Holdings in ServiceNow, Inc. $NOW

📈 Brookstone Capital Management raised its ServiceNow stake by 6.7% to 97,229 shares worth $10.165 million in Q1.

🚀 Vanguard Group increased its position by 404.5% to own over 101 million shares valued at $15.6 billion.

💰 ServiceNow reported Q1 revenue of $3.77 billion, beating estimates and growing 22.1% year-over-year.

📊 The company posted $0.97 EPS, meeting the consensus estimate with a net margin of 12.59%.

📉 Goldman Sachs lowered its price target to $163 while maintaining a 'buy' rating on the stock.

📉 Weiss Ratings downgraded ServiceNow from 'hold (c)' to 'hold (c-)' in a recent research note.

💼 Director Anita M. Sands sold 16,445 shares for $1.48 million, reducing her position by 35.34%.

📉 Insider selling continues with Jacqueline P. Canney offloading 8,927 shares in a separate transaction.

📈 Institutional ownership stands at 87.18%, dominated by hedge funds and major asset managers.

📉 The stock trades at a PE ratio of 55.40 with a market capitalization of $95.84 billion.

📉 ServiceNow shares are currently trading below its 200-day simple moving average of $116.97.

🛠️ The company's flagship Now Platform covers ITSM, ITOM, CSM, and HR Service Delivery functions.

Bullish Signals
  • Major institutional investors like Vanguard Group and State Street Corp significantly increased their stakes in the fourth quarter, signaling strong confidence in the company's long-term value.
  • ServiceNow delivered robust revenue growth of 22.1% year-over-year, surpassing analyst expectations with $3.77 billion in quarterly revenue.
  • The company maintained profitability with a net margin of 12.59% and a return on equity of 18.16%, demonstrating efficient capital allocation.
  • Analyst consensus remains bullish with an average target price of $142.17, supported by multiple 'Buy' and 'Strong Buy' ratings from firms like Evercore.
  • The stock is trading below its 200-day moving average of $116.97, potentially offering a favorable entry point for investors looking at technical levels.
Risk Factors
  • Weiss Ratings downgraded ServiceNow to a 'hold (c-)' rating, reflecting some caution among analysts regarding current valuation or near-term performance.
  • Goldman Sachs lowered its price objective from $188.00 to $163.00, indicating a potential pullback in short-term price expectations.
  • KeyCorp assigned an 'underweight' rating with a low price target of $85.00, suggesting significant disagreement among the analyst community regarding fair value.
  • Insider selling activity is notable, with Director Anita M. Sands reducing her position by 35.34% and Jacqueline P. Canney selling shares representing a 23.21% decrease.
  • The stock carries a high PE ratio of 55.40, which may limit upside potential if growth rates decelerate or if the market revalues high-growth tech stocks.
Full Analysis
Brookstone Capital Management increased its stake in ServiceNow, Inc. (NYSE: NOW) by 6.7% during the first quarter, purchasing an additional 6,071 shares to hold a total of 97,229 shares valued at $10.165 million. This move aligns with significant accumulation by other major institutional investors in the fourth quarter, including Vanguard Group, which raised its position by 404.5% to own over 101 million shares, and State Street Corp, which increased its stake by 406.6%. Analyst sentiment remains mixed but generally positive regarding the company's growth trajectory. While Weiss Ratings downgraded ServiceNow to a 'hold (c-)' and Goldman Sachs lowered its price objective to $163, other firms like Evercore raised their target price to $150 with an 'outperform' rating. The consensus average target price stands at $142.17, supported by a majority of analysts maintaining 'Buy' or 'Strong Buy' ratings. Financially, ServiceNow reported strong quarterly results with revenue reaching $3.77 billion, a 22.1% year-over-year increase that beat analyst expectations of $3.75 billion. The company posted earnings per share of $0.97, matching the consensus estimate, and achieved a net margin of 12.59%. Despite a high PE ratio of 55.40, the stock trades below its 200-day moving average of $116.97, presenting a potential entry point for investors. Insider activity shows some selling pressure as Director Anita M. Sands reduced her position by 35.34% and Jacqueline P. Canney sold shares representing a 23.21% decrease in their holdings. However, corporate insiders still own only 0.34% of the stock, while hedge funds and institutional investors control 87.18%, indicating strong external confidence in the enterprise software provider's long-term prospects.