X Square Capital LLC Acquires New Position in ServiceNow, Inc. $NOW

X Square Capital LLC acquired a new stake in shares of ServiceNow, Inc. (NYSE:NOW) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 49,555 shares of the information technology services provider’s stock, valued at approximately $4,920,000. ServiceNow makes up 1.2% of X Square Capital LLC’s investment portfolio, making the stock its 21st largest position.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. George Kaiser Family Foundation acquired a new stake in shares of ServiceNow in the 2nd quarter valued at $2,844,000. Westpac Banking Corp acquired a new position in shares of ServiceNow during the 2nd quarter worth $731,000. Iyo Bank Ltd. acquired a new position in shares of ServiceNow during the 2nd quarter worth $6,261,000. Sumitomo Life Insurance Co. bought a new stake in shares of ServiceNow during the 2nd quarter worth $2,802,000. Finally, Long Corridor Asset Management Ltd bought a new stake in shares of ServiceNow during the 2nd quarter worth $6,453,000. 87.18% of the stock is currently owned by institutional investors.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow expanded its multi-year partnership with Tech Mahindra to help enterprises move AI projects from pilot programs into production. The “Client Zero” approach combines ServiceNow’s AI platform with Tech Mahindra’s industry expertise, potentially increasing adoption, automation revenue and measurable customer outcomes. Tech Mahindra and ServiceNow Expand Partnership to Deliver Production-Ready Enterprise AI at Scale
• Positive Sentiment: Bank of America raised its ServiceNow price target to $150, citing the company’s positioning to monetize artificial intelligence as concerns about AI disruption to traditional software fade. The move contributed to broader bullish sentiment across software stocks. Bank of America Increases ServiceNow Price Target to $150
• Positive Sentiment: ServiceNow has gained substantially since its latest earnings report, which beat estimates on both adjusted earnings and revenue. Quarterly revenue increased 24% year over year, reinforcing the view that the company remains a leading enterprise AI and workflow platform. ServiceNow Up 41.1% Since Last Earnings Report
• Positive Sentiment: ServiceNow was also selected as a CNBC “Final Trade,” providing additional visibility and signaling continued support from some professional investors. Final Trades: ServiceNow, Vertex and Uber
• Neutral Sentiment: Despite the favorable company news, midday AI buying has been concentrated in government-facing companies such as Palantir and BigBear.ai rather than enterprise software, limiting near-term upside for NOW. How Are Traders Picking the Software Winners?
• Negative Sentiment: Investors continue to monitor competitive threats from newer AI-native automation platforms, including Serval, as well as ServiceNow’s premium valuation. Those concerns may encourage profit-taking after the stock’s sharp post-earnings advance. Serval Wants To Replace ServiceNow With AI That Builds Enterprise Automation

ServiceNow Stock Performance

NYSE NOW opened at $128.73 on Friday. The company has a market capitalization of $133.11 billion, a price-to-earnings ratio of 80.46, a PEG ratio of 2.26 and a beta of 0.94. ServiceNow, Inc. has a twelve month low of $81.24 and a twelve month high of $194.73. The stock has a fifty day simple moving average of $108.88 and a 200 day simple moving average of $105.74. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43.

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

Insider Activity

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the company’s stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $125.60, for a total value of $188,400.00. Following the sale, the director directly owned 46,690 shares in the company, valued at $5,864,264. This represents a 3.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.34% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

NOW has been the topic of several research analyst reports. DA Davidson set a $170.00 price objective on ServiceNow and gave the company a “buy” rating in a research note on Monday, July 20th. Bank of America increased their target price on shares of ServiceNow from $130.00 to $150.00 and gave the stock a “buy” rating in a report on Wednesday. Morgan Stanley set a $180.00 target price on shares of ServiceNow in a report on Tuesday, July 21st. Guggenheim upgraded shares of ServiceNow from a “neutral” rating to a “buy” rating and set a $125.00 price target on the stock in a research note on Wednesday, July 1st. Finally, CLSA began coverage on shares of ServiceNow in a report on Monday, July 20th. They set an “underperform” rating and a $72.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, ServiceNow currently has an average rating of “Moderate Buy” and an average target price of $144.24.

ServiceNow Company Profile

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.