ServiceNow (NOW) Stock: Institutional Buying Picks Up as Street Holds Buy

TLDR

• Multiple Wall Street analysts reiterated Buy ratings on NOW stock, with price targets ranging from $115 to $236
• Bernstein holds the Street-high target at $236, implying over 157% upside from current levels
• NOW stock opened at $91.51, down 40.19% year-to-date and 55.11% over the past 12 months
• Bailard Inc. increased its NOW position by 422.9% in Q4; institutional investors now hold 87.18% of the stock
• ServiceNow reported Q1 revenue of $3.77 billion, up 22.1% year-over-year, meeting analyst expectations

ServiceNow (NOW) stock edged higher on Monday as several Wall Street analysts stood by their bullish calls on the enterprise software company, even as the stock continues to trade well below its highs.

ServiceNow, Inc., NOW

NOW opened at $91.51, sitting near its 12-month low of $81.24. The 12-month high was $211.48. The stock is down 40.19% year-to-date and has dropped 55.11% over the past year.

Despite the slide, analysts haven’t backed away.

Bernstein analyst Peter Weed holds the Street-high price target at $236, raised from $226, while keeping a Buy rating. That target would represent a 157% gain from current levels.

Wells Fargo’s Michael Turrin reiterated a Buy with a $160 target. Citi’s Tyler Radke held his Buy and a $158 target. Goldman Sachs analyst Gabriela Borges also kept a Buy rating, with a $163 target.

The consensus rating across analysts currently sits at Moderate Buy, with an average price target of $144.71, according to MarketBeat data.

Institutional Investors Keep Buying

While retail sentiment has been mixed, institutional money has been moving in the other direction.

Bailard Inc. raised its ServiceNow position by 422.9% in Q4, ending the period with 79,350 shares worth around $12.2 million. Several other firms also added to their positions.

Nicholas Company Inc. grew its stake by 532.6%, ending the quarter with 426,015 shares valued at over $65 million. AG2R LA Mondiale Gestion D Actifs boosted its holding by 437.5%. Pier 88 Investment Partners lifted its position by 393.2%.

Hedge funds and institutions collectively own 87.18% of NOW stock.

On the insider side, the picture is less rosy. Over the past 90 days, insiders sold 25,164 shares worth roughly $2.5 million. Insider Jacqueline P. Canney sold 8,927 shares at an average price of $89.60 in April, reducing her stake by 23.21%.

Recent Results and What’s Ahead

ServiceNow reported Q1 revenue of $3.77 billion, slightly ahead of the $3.75 billion consensus. Earnings per share came in at $0.97, matching expectations. Revenue was up 22.1% year-over-year.

The company posted a net margin of 12.59% and a return on equity of 18.16%.

ServiceNow is planning to raise $4 billion in a bond sale, which analysts note adds leverage but isn’t a direct operational catalyst.

FedEx recently expanded its partnership with ServiceNow, which analysts see as a sign of continued enterprise demand for its automation and workflow tools.

BMO Capital reaffirmed an Outperform rating, citing the platform’s positioning around autonomous execution and governance.

Analysts currently expect ServiceNow to post full-year EPS of $2.35. The stock’s 50-day moving average sits at $102.18, and its 200-day at $131.38.

Daily trading volume on Monday came in around 10 million shares, below the three-month average of 18 million.

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