StoneRidge PMG Advisors LLC Makes New Investment in ServiceNow, Inc. $NOW

StoneRidge PMG Advisors LLC purchased a new position in shares of ServiceNow, Inc. (NYSE:NOW) in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 11,638 shares of the information technology services provider’s stock, valued at approximately $1,560,000. ServiceNow accounts for about 1.0% of StoneRidge PMG Advisors LLC’s portfolio, making the stock its 22nd biggest holding.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Cornerstone Financial Management LLC increased its holdings in shares of ServiceNow by 72.8% in the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 107 shares during the period. Pathway Financial Advisers LLC purchased a new position in shares of ServiceNow in the third quarter worth about $38,000. Marquette Asset Management LLC lifted its holdings in shares of ServiceNow by 75.0% during the second quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider’s stock worth $30,000 after purchasing an additional 129 shares during the period. Kilter Group LLC acquired a new stake in shares of ServiceNow during the second quarter worth about $31,000. Finally, Solstein Capital LLC acquired a new stake in shares of ServiceNow during the second quarter worth about $35,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

Insiders Place Their Bets

In other news, insider Jacqueline Canney sold 7,847 shares of the firm’s stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the sale, the insider owned 30,042 shares of the company’s stock, valued at $4,145,796. This trade represents a 20.71% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of ServiceNow stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the transaction, the insider directly owned 18,305 shares of the company’s stock, valued at approximately $2,706,760.35. This trade represents a 10.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 14,081 shares of company stock worth $1,937,904. Corporate insiders own 0.34% of the company’s stock.

ServiceNow Stock Down 0.1%

ServiceNow stock opened at $101.91 on Monday. The firm has a market cap of $105.78 billion, a price-to-earnings ratio of 73.32, a price-to-earnings-growth ratio of 1.99 and a beta of 1.00. ServiceNow, Inc. has a 52 week low of $81.24 and a 52 week high of $175.00. The business’s 50-day moving average price is $136.31 and its 200 day moving average price is $114.81. The company has a quick ratio of 0.72, a current ratio of 0.72 and a debt-to-equity ratio of 0.42.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share for the quarter, missing the consensus estimate of $1.02 by ($0.02). ServiceNow had a net margin of 9.36% and a return on equity of 15.17%. The company had revenue of $4.11 billion for the quarter, compared to analysts’ expectations of $4.09 billion. During the same quarter in the prior year, the business posted $4.82 earnings per share. The firm’s revenue was up 20.5% compared to the same quarter last year. As a group, sell-side analysts anticipate that ServiceNow, Inc. will post 2.12 earnings per share for the current year.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is broadening its agentic-AI partnership with LTM, aiming to take AI workflows to more enterprise customers. The company also highlighted deployments and selections by customers including LTM, KORE and Keysight, supporting its case that businesses are adopting its AI platform. ServiceNow expands enterprise AI partnerships
• Positive Sentiment: ServiceNow raised its AI contract-value target to $1.7 billion, and its CFO described fears that AI will disrupt the company’s business as unfounded. These points may help reassure investors about AI’s potential as a growth driver. ServiceNow Q3 earnings call highlights
• Neutral Sentiment: The NBA extended its partnership with ServiceNow, adopting EmployeeWorks for employee self-service and workplace requests. The deal adds a customer use case, though its near-term financial impact was not specified. NBA and ServiceNow extend partnership
• Negative Sentiment: Investors are focused on the outlook: despite a third-quarter revenue beat, ServiceNow’s fourth-quarter current remaining performance obligations growth forecast of 18.5% disappointed the market and prompted concerns about slowing backlog growth. The stock has fallen sharply since the report. ServiceNow outlook and AI concerns
• Negative Sentiment: ServiceNow is undertaking another round of layoffs, while third-quarter severance costs rose to $87 million from $24 million a year earlier. Separate reports that the board approved $127 million in retention awards as the company cuts jobs may also draw scrutiny over costs and priorities. ServiceNow layoffs and severance costs
• Negative Sentiment: ETFs were net sellers of $29.5 million in ServiceNow shares on Wednesday, adding a modest near-term headwind. ETF selling of ServiceNow shares

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on NOW. Barclays set a $152.00 price target on shares of ServiceNow and gave the stock an “overweight” rating in a report on Thursday, October 29th. Piper Sandler restated an “overweight” rating and set a $175.00 price objective on shares of ServiceNow in a research note on Thursday, October 29th. Jefferies Financial Group set a $145.00 price objective on shares of ServiceNow in a research note on Thursday, October 29th. Argus reiterated a “buy” rating and issued a $170.00 price objective on shares of ServiceNow in a research note on Tuesday, November 3rd. Finally, Evercore reissued an “outperform” rating on shares of ServiceNow in a report on Tuesday, October 13th. One research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, ServiceNow presently has an average rating of “Moderate Buy” and a consensus target price of $154.50.

ServiceNow Company Profile

ServiceNow, Inc provides cloud-based software that helps organizations manage digital workflows and automate business processes. Founded in 2004 by Fred Luddy, the company began with a focus on IT service management and has expanded its platform to support a range of enterprise operations.

Its products include tools for IT service and operations management, customer service, human resources, security, and application development. ServiceNow also offers artificial intelligence capabilities, including tools designed to help organizations automate tasks and find information across workflows.

ServiceNow serves businesses and public-sector organizations around the world.