ServiceNow, Inc.

New York Stock Exchange
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Somewhat Bullish +45

Bradley Foster & Sargent Inc. CT Lowers Stake in ServiceNow, Inc. $NOW

📉 Bradley Foster & Sargent Inc. CT lowered its ServiceNow stake by 43.2%, reducing holdings to 29,897 shares valued at $3.126 million.

📈 Vanguard Group increased its position by 404.5% in Q4, now owning 101,963,384 shares worth approximately $15.6 billion.

📈 State Street Corp raised its stake by 406.6%, acquiring an additional 38.4 million shares valued at roughly $7.3 billion.

📈 Price T Rowe Associates Inc. MD boosted its holding by 371.0% to own 32.4 million shares worth nearly $5 billion.

📈 Geode Capital Management LLC and Morgan Stanley also significantly increased their stakes in the fourth quarter.

💰 ServiceNow reported Q1 EPS of $0.90, beating analyst consensus estimates of $0.86 by $0.04.

💰 Quarterly revenue reached $3.99 billion, surpassing expectations of $3.93 billion and growing 24% year-over-year.

📊 The company maintains a market capitalization of $102.13 billion with a P/E ratio of 61.73.

🗣️ BTIG Research reissued a 'buy' rating with a $150 price objective on July 22nd.

📉 Wells Fargo cut its target price to $160 while maintaining an 'overweight' rating in April.

📉 CLSA initiated coverage with an 'underperform' rating and a $72 price target on July 20th.

👔 Directors Paul Edward Chamberlain and Anita M. Sands sold shares totaling over $1.7 million in May.

🏢 Institutional investors collectively own 87.18% of the company's outstanding stock.

Bullish Signals
  • ServiceNow beat quarterly earnings expectations with EPS of $0.90 versus a consensus of $0.86, demonstrating strong profitability.
  • Revenue grew 24% year-over-year to $3.99 billion, exceeding analyst forecasts of $3.93 billion and indicating robust demand.
  • Major institutional investors like Vanguard Group and State Street Corp significantly increased their stakes in Q4, signaling confidence in the company's long-term prospects.
  • The stock has a net margin of 11.34% and a return on equity of 16.45%, reflecting efficient operations and capital generation.
  • Analyst BTIG Research reissued a 'buy' rating with a $150 price objective, suggesting continued bullish sentiment from key research firms.
Risk Factors
  • Wells Fargo & Company lowered its target price for ServiceNow from $185.00 to $160.00, indicating some analysts see limited upside at current levels.
  • CLSA initiated coverage with an 'underperform' rating and a low $72.00 price target, highlighting bearish concerns among some equity researchers.
  • Corporate insiders sold 19,144 shares worth approximately $1.73 million in the last quarter, though these were executed under pre-arranged Rule 10b5-1 trading plans.
  • The stock trades at a high P/E ratio of 61.73, which may limit upside potential if growth rates decelerate or if valuation multiples compress.
Full Analysis
Bradley Foster & Sargent Inc. CT reduced its stake in ServiceNow, Inc. (NYSE: NOW) by 43.2% during the first quarter, selling 22,728 shares to hold a remaining position of 29,897 shares valued at $3.126 million. Conversely, major institutional investors significantly increased their holdings in the fourth quarter, with Vanguard Group boosting its stake by 404.5% to own over 101 million shares worth approximately $15.6 billion, while State Street Corp and Price T Rowe Associates also raised their positions substantially. Analyst sentiment remains mixed regarding ServiceNow's valuation. BTIG Research reissued a 'buy' rating with a $150 price objective, and Morgan Stanley set a target of $180, whereas Wells Fargo lowered its target price to $160 and CLSA initiated coverage with an 'underperform' rating and a $72 target. The consensus average rating is currently a 'Moderate Buy' with a price target of $143.39. Financially, ServiceNow reported strong quarterly results on July 22nd, beating earnings estimates with $0.90 EPS compared to the expected $0.86 and revenue of $3.99 billion versus expectations of $3.93 billion. Revenue grew 24% year-over-year, though the stock trades at a high P/E ratio of 61.73. Recent insider activity saw directors Paul Edward Chamberlain and Anita M. Sands sell shares totaling over $1.7 million under pre-arranged trading plans.