Rakuten Investment Management Inc. Buys 15,853 Shares of ServiceNow, Inc. $NOW

Rakuten Investment Management Inc. increased its stake in shares of ServiceNow, Inc. (NYSE:NOW) by 9.4% in the third quarter, according to its most recent 13F filing with the SEC. The firm owned 185,380 shares of the information technology services provider’s stock after purchasing an additional 15,853 shares during the period. Rakuten Investment Management Inc.’s holdings in ServiceNow were worth $24,088,000 at the end of the most recent reporting period.

Several other institutional investors have also recently added to or reduced their stakes in the stock. Bank of Nova Scotia increased its stake in ServiceNow by 53.3% during the first quarter. Bank of Nova Scotia now owns 1,018,036 shares of the information technology services provider’s stock worth $106,436,000 after purchasing an additional 353,749 shares during the period. Sapient Capital LLC lifted its position in shares of ServiceNow by 266.0% during the second quarter. Sapient Capital LLC now owns 77,661 shares of the information technology services provider’s stock worth $7,710,000 after purchasing an additional 56,444 shares in the last quarter. Meeder Advisory Services Inc. acquired a new stake in shares of ServiceNow during the second quarter worth about $2,881,000. Vestor Capital LLC lifted its position in shares of ServiceNow by 38,987.2% during the first quarter. Vestor Capital LLC now owns 122,343 shares of the information technology services provider’s stock worth $12,791,000 after purchasing an additional 122,030 shares in the last quarter. Finally, Cardano Risk Management B.V. boosted its stake in shares of ServiceNow by 6.9% in the second quarter. Cardano Risk Management B.V. now owns 484,785 shares of the information technology services provider’s stock valued at $48,129,000 after purchasing an additional 31,119 shares during the period. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow Stock Performance

Shares of NOW opened at $109.09 on Wednesday. The stock has a 50-day simple moving average of $137.87 and a 200-day simple moving average of $115.16. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.72 and a current ratio of 0.72. The stock has a market capitalization of $113.24 billion, a PE ratio of 78.48, a PEG ratio of 2.03 and a beta of 1.00. ServiceNow, Inc. has a 1 year low of $81.24 and a 1 year high of $181.73.

ServiceNow (NYSE:NOW) last announced its quarterly earnings data 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 for the quarter, compared to analyst estimates of $4.09 billion. During the same period in the prior year, the firm posted $4.82 earnings per share. The business’s quarterly revenue was up 20.5% compared to the same quarter last year. On average, analysts predict that ServiceNow, Inc. will post 2.13 earnings per share for the current fiscal year.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Argus reaffirmed its Buy rating and set a $170 price target, signaling confidence in ServiceNow’s recovery potential after the recent selloff. Argus rating and price target
• Positive Sentiment: ServiceNow’s enterprise AI push—including its Control Tower Alliance with major technology partners—could strengthen its role in helping companies deploy and govern AI. ServiceNow rolls out Control Tower Alliance
• Positive Sentiment: Recent commentary argues that the selloff may offer a buying opportunity, citing ServiceNow’s growth prospects and demand for AI-driven workflow tools. ServiceNow Stock: Buy the Dip?
• Neutral Sentiment: Q3 revenue was about $4.1 billion, slightly ahead of estimates, but the company is increasing AI-related investment and shifting toward outcome-based pricing—changes that could affect how growth and profitability develop. How Higher AI Spending Will Impact ServiceNow Stock
• Negative Sentiment: The sharp recent decline followed weaker fourth-quarter backlog guidance, which revived fears that AI could disrupt seat-based software models and weigh on future growth. ServiceNow’s selloff and Wall Street price-target cuts
• Negative Sentiment: Management’s AI investments and business-model changes pressured operating margins, adding to investor concerns despite revenue growth. Analyst questions from ServiceNow’s Q3 earnings call

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. BMO Capital Markets lifted their price objective on shares of ServiceNow from $115.00 to $118.00 and gave the company an “outperform” rating in a report on Thursday, July 23rd. UBS Group reaffirmed an “underweight” rating on shares of ServiceNow in a research note on Thursday, October 29th. Wells Fargo & Company reduced their target price on shares of ServiceNow from $190.00 to $175.00 and set an “overweight” rating on the stock in a report on Thursday, October 29th. Piper Sandler reissued an “overweight” rating and issued a $175.00 price target on shares of ServiceNow in a research report on Thursday, October 29th. Finally, Canaccord Genuity Group set a $145.00 price target on shares of ServiceNow in a research note on Thursday, October 29th. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $154.50.

Insider Buying and Selling

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

ServiceNow Company Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company’s products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.