5 Companies That Announced Huge Share Buybacks Recently

4. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 96    

ServiceNow, Inc. (NYSE:NOW) provides enterprise cloud computing solutions that define, structure, consolidate, manage, and automate services for enterprises worldwide. On May 17, the shares of the firm soared after it announced on investor day that it would launch its first-ever share buyback program worth $1.5 billion. The firm made the decision on the back of a hike to operating margin guidance in 2024 and the prospects in artificial intelligence.

On May 30, Bernstein analyst Peter Weed maintained an Overweight rating on ServiceNow, Inc. (NYSE:NOW) stock and raised the price target to $665 from $586, noting the firm was a huge $7 billion revenue business with very high penetration of the F500, G2000, and beyond. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in ServiceNow, Inc. (NYSE:NOW) with 808,897 shares worth more than $375 million.

In its Q2 2022 investor letter, Ensemble Capital, an asset management firm, highlighted a few stocks and ServiceNow, Inc. (NYSE:NOW) was one of them. Here is what the fund said:

“ServiceNow, Inc. (NYSE:NOW) is an enterprise software company that helps its corporate customers integrate all of their various software products into a unified platform. Their products are a key element in driving the digital transformation nearly every large company is undergoing. At the recent JP Morgan investor day, CEO Jamie Dimon explained that while the company could reduce expenses if needed should the economy slow, their spending on digital transformation would continue as this spending was critical to the company managing costs and maximizing revenue over time. As an example of this type of spending, Dimon specifically pointed to ServiceNow, calling out that the company’s products now oversaw the single largest collection of JP Morgan data and highlighted that working with them had saved JP Morgan $50 million over the past few years. (click here to read more…)