Palouse Capital Management Inc. Acquires New Stake in ServiceNow, Inc. $NOW

Palouse Capital Management Inc. bought a new stake in ServiceNow, Inc. (NYSE:NOW) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 11,631 shares of the information technology services provider’s stock, valued at approximately $1,155,000.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its holdings in shares of ServiceNow by 404.5% during the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock worth $15,619,771,000 after acquiring an additional 81,752,460 shares during the period. State Street Corp increased its position in ServiceNow by 406.6% during the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock worth $7,337,280,000 after purchasing an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD increased its position in ServiceNow by 371.0% during the fourth 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 purchasing an additional 25,517,218 shares during the last quarter. Geode Capital Management LLC raised its stake in ServiceNow by 404.8% during the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock worth $3,591,425,000 after purchasing an additional 18,854,775 shares during the period. Finally, Morgan Stanley raised its stake in ServiceNow by 335.6% during the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock worth $3,482,543,000 after purchasing an additional 17,514,679 shares during the period. Hedge funds and other institutional investors own 87.18% of the company’s stock.

ServiceNow Trading Up 0.1%

NOW opened at $117.31 on Friday. The business has a fifty day moving average price of $106.72 and a 200 day moving average price of $105.73. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. ServiceNow, Inc. has a 12 month low of $81.24 and a 12 month high of $194.73. The stock has a market capitalization of $121.30 billion, a price-to-earnings ratio of 73.32, a PEG ratio of 2.06 and a beta of 0.94.

ServiceNow (NYSE:NOW) last issued its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm had revenue of $3.99 billion for the quarter, compared to analysts’ expectations of $3.93 billion. During the same quarter last year, the company earned $0.81 earnings per share. The firm’s revenue was up 24.0% compared to the same quarter last year. Sell-side analysts expect that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Key Headlines 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

Analyst Upgrades and Downgrades

A number of research firms recently commented on NOW. Morgan Stanley set a $180.00 price objective on ServiceNow in a report on Tuesday, July 21st. Stifel Nicolaus cut their target price on ServiceNow from $135.00 to $120.00 and set a “buy” rating for the company in a research note on Thursday, April 23rd. Raymond James Financial reduced their target price on ServiceNow from $160.00 to $130.00 and set an “outperform” rating on the stock in a research report on Thursday, April 23rd. Capital One Financial upped their price target on ServiceNow from $105.00 to $120.00 and gave the company an “overweight” rating in a research note on Tuesday, May 5th. Finally, Robert W. Baird increased their price target on ServiceNow from $118.00 to $125.00 and gave the stock an “outperform” rating in a report on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $143.39.

Insider Activity

In other news, Director Anita M. Sands sold 16,445 shares of the stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the transaction, the director owned 30,090 shares in the company, valued at approximately $2,712,312.60. This represents a 35.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction that occurred 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 of the company’s stock, valued at approximately $3,919,243.90. The trade was a 3.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 18,993 shares of company stock worth $1,716,436. 0.34% of the stock is currently owned by insiders.

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.