Stock Traders Purchase Large Volume of ServiceNow Call Options (NYSE:NOW)

ServiceNow, Inc. (NYSE:NOW) was the recipient of some unusual options trading on Thursday. Investors purchased 168,241 call options on the company. This is an increase of 37% compared to the typical volume of 122,717 call options.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Wipro and ServiceNow expanded their partnership to automate enterprise workflows with AI, reinforcing ServiceNow’s role in enterprise digital transformation and potentially driving more platform usage. Wipro and ServiceNow deepen AI partnership to automate enterprise workflows
• Positive Sentiment: Another report said Wipro is embedding agentic AI workflows across core enterprise functions using ServiceNow, which supports the investment case that NOW can capture more AI-related enterprise spending. Wipro Expands ServiceNow Partnership to Embed Agentic AI Workflows Across Core Enterprise Functions
• Positive Sentiment: Several articles highlighted ServiceNow’s recent quarter, where revenue grew 22% year over year and earnings met expectations, suggesting solid execution and helping back up valuation support for the stock. ServiceNow (NOW) Stock Analysis: Evaluating the Investment Opportunity
• Neutral Sentiment: Analysts and commentary continue to focus on whether ServiceNow can defend growth as AI competition intensifies; the debate is important, but the articles frame the company as well positioned through governance, security, and enterprise integration rather than signaling a near-term problem. Can ServiceNow Sustain Its Growth Amid Rising AI Competition?
• Neutral Sentiment: Other pieces were mostly broad market or stock-watch commentary, including conference transcript coverage and “trending stock” mentions, which add visibility but do not appear to be major fresh stock-moving catalysts. ServiceNow, Inc. (NOW) Presents at Jefferies Software, Internet & AI Conference Transcript
• Negative Sentiment: Some investors remain concerned that AI could disrupt ServiceNow’s business model, which keeps a lid on enthusiasm even after strong operating results. Is ServiceNow Stock an Undervalued Stock to Buy?

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Weiss Ratings downgraded ServiceNow from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday, April 21st. Barclays reaffirmed an “overweight” rating and set a $134.00 price target (up from $132.00) on shares of ServiceNow in a report on Tuesday, May 5th. Sanford C. Bernstein reissued an “outperform” rating and set a $236.00 target price (up from $226.00) on shares of ServiceNow in a research note on Wednesday, May 6th. Wolfe Research set a $125.00 target price on ServiceNow in a research note on Thursday, April 23rd. Finally, Truist Financial reduced their target price on ServiceNow from $125.00 to $120.00 and set a “buy” rating for the company in a report on Thursday, April 23rd. Two analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $141.85.

Insiders Place Their Bets

In other news, insider Jacqueline P. Canney sold 8,927 shares of the stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the completion of the sale, the insider directly owned 29,531 shares of the company’s stock, valued at approximately $2,645,977.60. This represents a 23.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total value of $130,845.00. Following the completion of the sale, the director directly owned 44,930 shares of the company’s stock, valued at $3,919,243.90. The trade was a 3.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 28,071 shares of company stock valued at $2,529,956. 0.34% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in NOW. Maripau Wealth Management LLC grew its holdings in ServiceNow by 26.4% during the 1st quarter. Maripau Wealth Management LLC now owns 3,420 shares of the information technology services provider’s stock valued at $358,000 after buying an additional 715 shares during the last quarter. Westshore Wealth LLC increased its position in ServiceNow by 0.8% during the 1st quarter. Westshore Wealth LLC now owns 16,233 shares of the information technology services provider’s stock worth $1,697,000 after purchasing an additional 128 shares in the last quarter. Glenmede Trust Co. NA raised its stake in ServiceNow by 232.2% in the 1st quarter. Glenmede Trust Co. NA now owns 426,146 shares of the information technology services provider’s stock valued at $44,554,000 after purchasing an additional 297,879 shares during the last quarter. Summitry LLC acquired a new position in ServiceNow in the 1st quarter valued at about $222,000. Finally, Verus Capital Partners LLC raised its stake in ServiceNow by 27.9% in the 1st quarter. Verus Capital Partners LLC now owns 4,540 shares of the information technology services provider’s stock valued at $475,000 after purchasing an additional 990 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

ServiceNow Price Performance

ServiceNow stock traded up $7.73 during midday trading on Thursday, reaching $109.85. The company’s stock had a trading volume of 26,535,576 shares, compared to its average volume of 22,548,271. ServiceNow has a fifty-two week low of $81.24 and a fifty-two week high of $211.48. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The stock’s 50 day simple moving average is $98.00 and its 200 day simple moving average is $124.18. The firm has a market capitalization of $113.26 billion, a PE ratio of 65.57, a P/E/G ratio of 1.65 and a beta of 0.82.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The business had revenue of $3.77 billion during the quarter, compared to analysts’ expectations of $3.75 billion. During the same quarter last year, the business posted $0.81 earnings per share. The business’s revenue for the quarter was up 22.1% on a year-over-year basis. On average, equities research analysts forecast that ServiceNow will post 2.35 earnings per share for the current year.

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.