Moody Lynn & Lieberson Dumps 2,900 ServiceNow Shares Worth $2.8 Million

On October 20, 2025, Moody Lynn & Lieberson, LLC disclosed the sale of 2,954 shares of ServiceNow (NYSE:NOW) in Q3 2025. This was an estimated $2.76 million trade based on the average price for the quarter.

What happened

According to a filing with the Securities and Exchange Commission dated October 20, 2025, Moody Lynn & Lieberson, LLC reported selling 2,954 shares of ServiceNow during the third quarter. The estimated trade size was $2.8 million based on the period’s average closing price. The fund’s post-trade position stood at 30,135 shares, valued at $27.7 million for the quarter ending September 30, 2025.

What else to know

This sale reduced the ServiceNow stake to 1.5% of 13F reportable Assets Under Management (AUM) as of September 30, 2025. Prior to this sale, ServiceNow represented just under 2% of AUM.

Top holdings after the filing (as of September 30, 2025):

• AVGO – $127 million (6.8% of AUM)
• NVDA – $120 million (6.5% of AUM)
• MSFT – $100 million (5.4% of AUM)
• GOOGL – $98 million (5.2% of AUM)
• AAPL – $70 million (3.8% of AUM)

As of October 28, 2025, ServiceNow shares were priced at $938.14, reflecting a 1.3% decrease over the past year and lagging the S&P 500 by 20 percentage points over the past year.

Company Overview

Company Snapshot

ServiceNow delivers enterprise cloud computing solutions, including workflow automation, IT service management, IT operations, asset management, security operations, and industry-specific applications.

Its main customers include large enterprises and organizations across government, financial services, healthcare, telecommunications, manufacturing, and technology sectors.

The company operates globally, offering its Now Platform to support digital transformation and process automation for a wide range of industries.

ServiceNow, Inc. leverages artificial intelligence and machine learning to streamline IT and business processes, delivering operational efficiency and improved service delivery.

Foolish take

Moody Lynn & Leiberson is an investment advisor that runs a large and diversified portfolio of stock holdings. While there is some concentration in its top ten holdings, which represent 44% of the portfolio, ServiceNow's shares represented under 2% of AUM before the Q3 sale. As a result, ServiceNow wasn't making a huge impact to the overall returns for the fund anyway. Looking at the transaction from that perspective, this sale is a non-story.

That said, ServiceNow has some tailwinds at its back that Moody Lynn & Lieberson may be overlooking in its decision to reduce its stake. In addition to ServiceNow's remarkably consistent results over the last several years, the company has jumped with both feet into the deep end of the AI pool and the results have been promising.

At a recent investor conference, CEO Bill McDermott said ServiceNow has provided an AI premium on its pricing method and its customers are comfortable with it as evidenced by the company's 50% quarter over quarter growth in the adoption of its AI premium products.

ServiceNow is also growing its large customers in an impressive manner. In Q2 of 2025, the company reported that its customers with an average contract value of greater than $5 million grew by 19% for the second consecutive quarter.

Moody Lynn & Lieberson's sale of ServiceNow stock won't make any meaningful impact on its overall portfolio performance, but it may have been shortsighted in trimming this consistently strong business at the forefront of the AI buildout.

Glossary

13F reportable assets under management (AUM): The portion of a fund’s assets required to be disclosed quarterly to the SEC.
Assets Under Management (AUM): The total market value of all investments managed by a fund or firm on behalf of clients.
Quarter (Q3 2025): Refers to the third three-month period of the calendar year, often used for financial reporting.
Top holdings: The largest individual investments within a fund’s portfolio, ranked by value or percentage of total assets.
Lagging the S&P 500: Underperforming the S&P 500 index over a specified period.
Market Capitalization: The total value of a company’s outstanding shares, calculated as share price times shares outstanding.
Workflow automation: Technology that automates business processes, reducing manual intervention and increasing efficiency.
IT service management: The process of designing, delivering, and managing IT services to meet organizational needs.
IT operations: The management and maintenance of an organization’s IT infrastructure and services.
Asset management (IT context): Tracking and managing an organization’s technology assets throughout their lifecycle.
Security operations: Activities and processes focused on protecting an organization’s information systems from threats.
TTM: The 12-month period ending with the most recent quarterly report.

Jeff Santoro has positions in Apple, Broadcom, Microsoft, Nvidia, and ServiceNow. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, Nvidia, and ServiceNow. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.