M Holdings Securities Inc. Buys 12,611 Shares of ServiceNow, Inc. $NOW

M Holdings Securities Inc. grew its stake in ServiceNow, Inc. (NYSE:NOW) by 87.1% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 27,091 shares of the information technology services provider’s stock after purchasing an additional 12,611 shares during the quarter. M Holdings Securities Inc.’s holdings in ServiceNow were worth $3,630,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. BlackRock Inc. bought a new stake in shares of ServiceNow during the 2nd quarter valued at about $9,536,615,000. Bank of New York Mellon Corp bought a new position in ServiceNow in the second quarter worth about $712,573,000. Legal & General Group Plc bought a new position in ServiceNow in the second quarter worth about $641,888,000. Bank of America Corp DE bought a new position in ServiceNow in the second quarter worth about $627,355,000. Finally, Deutsche Bank AG purchased a new stake in ServiceNow in the second quarter worth about $595,157,000. 87.18% of the stock is owned by hedge funds and other institutional investors.

Key ServiceNow News

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

Wall Street Analysts Forecast Growth

Several analysts have weighed in on NOW shares. CLSA assumed coverage on ServiceNow in a research report on Monday, July 20th. They set an “underperform” rating and a $72.00 price objective on the stock. JPMorgan Chase & Co. upped their target price on ServiceNow from $150.00 to $160.00 and gave the stock an “overweight” rating in a report on Thursday, October 29th. Jefferies Financial Group set a $145.00 target price on ServiceNow in a research report on Thursday, October 29th. Robert W. Baird set a $185.00 target price on ServiceNow in a research note on Thursday, October 29th. Finally, Argus restated a “buy” rating and issued a $170.00 target price on shares of ServiceNow in a research note on Tuesday, November 3rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $154.50.

Insider Transactions at ServiceNow

In related news, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $135.50, for a total transaction of $365,850.00. Following the sale, the director directly owned 43,990 shares of the company’s stock, valued at approximately $5,960,645. This represents a 5.78% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Paul Fipps sold 2,034 shares of the stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the sale, the insider directly owned 18,305 shares in the company, valued at $2,706,760.35. This trade represents a 10.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 14,081 shares of company stock valued at $1,937,904 in the last quarter. 0.34% of the stock is owned by insiders.

ServiceNow Stock Down 0.1%

Shares of NYSE:NOW opened at $101.91 on Monday. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 0.42. The stock has a fifty day simple moving average of $136.31 and a two-hundred day simple moving average of $114.81. ServiceNow, Inc. has a 12-month low of $81.24 and a 12-month high of $175.00. The stock has a market capitalization of $105.78 billion, a price-to-earnings ratio of 73.32, a PEG ratio of 1.99 and a beta of 1.00.

ServiceNow (NYSE:NOW) last released its earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 EPS for the quarter, missing analysts’ consensus estimates of $1.02 by ($0.02). ServiceNow had a return on equity of 15.17% and a net margin of 9.36%. The company had revenue of $4.11 billion during the quarter, compared to analysts’ expectations of $4.09 billion. During the same period in the prior year, the company posted $4.82 earnings per share. The company’s revenue was up 20.5% on a year-over-year basis. On average, research analysts anticipate that ServiceNow, Inc. will post 2.12 earnings per share for the current fiscal year.

About ServiceNow

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.