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

Key Points

• Unusual options activity: Traders bought 168,241 ServiceNow call options on Thursday, about 37% above the stock’s typical daily call volume, signaling elevated bullish speculation.
• Stock and earnings backdrop: ServiceNow shares rose 7.6% to $109.85, while the company recently reported 22.1% year-over-year revenue growth and earnings that matched estimates for its latest quarter.
• AI partnership momentum: Recent coverage highlighted expanded partnerships with Wipro to automate enterprise workflows using AI, which could support greater platform usage and help ServiceNow capture more AI-related enterprise spending.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) was the recipient of some unusual options trading activity on Thursday. Stock investors purchased 168,241 call options on the stock. This represents an increase of 37% compared to the typical daily volume of 122,717 call options.

More ServiceNow News

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?

ServiceNow Trading Up 7.6%

NYSE NOW traded up $7.73 during trading on Thursday, hitting $109.85. The stock had a trading volume of 26,535,576 shares, compared to its average volume of 22,548,271. The company has a market capitalization of $113.26 billion, a PE ratio of 65.57, a PEG ratio of 1.65 and a beta of 0.82. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13. The firm has a 50 day moving average price of $98.00 and a 200 day moving average price of $124.18. ServiceNow has a twelve month low of $81.24 and a twelve month high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting the consensus estimate of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. During the same quarter in the prior year, the business earned $0.81 EPS. ServiceNow's revenue was up 22.1% on a year-over-year basis. As a group, equities research analysts forecast that ServiceNow will post 2.35 earnings per share for the current year.

Insider Activity at ServiceNow

In related news, insider Paul Fipps sold 1,048 shares of the business's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $98.51, for a total value of $103,238.48. Following the sale, the insider directly owned 12,072 shares in the company, valued at approximately $1,189,212.72. The trade was a 7.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Anita M. Sands sold 16,445 shares of the business's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the sale, the director owned 30,090 shares in the company, valued at approximately $2,712,312.60. This trade represents a 35.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 28,071 shares of company stock valued at $2,529,956 in the last quarter. Corporate insiders own 0.34% of the company's stock.

Hedge Funds Weigh In On ServiceNow

Institutional investors and hedge funds have recently made changes to their positions in the stock. IAG Wealth Partners LLC grew its position in shares of ServiceNow by 200.0% during the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after buying an additional 18 shares in the last quarter. Noble Wealth Management PBC grew its position in shares of ServiceNow by 400.0% during the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock worth $25,000 after buying an additional 128 shares in the last quarter. Millstone Evans Group LLC grew its position in shares of ServiceNow by 400.0% during the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after buying an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC grew its position in shares of ServiceNow by 540.0% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock worth $25,000 after buying an additional 135 shares in the last quarter. Finally, Blueline Advisors LLC acquired a new position in ServiceNow in the fourth quarter valued at approximately $25,000. 87.18% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several analysts recently issued reports on NOW shares. Robert W. Baird reduced their price objective on shares of ServiceNow from $125.00 to $118.00 and set an "outperform" rating on the stock in a report on Thursday, April 23rd. Bank of America started coverage on shares of ServiceNow in a report on Monday, May 18th. They issued a "buy" rating and a $130.00 price objective on the stock. Mizuho reduced their price objective on shares of ServiceNow from $150.00 to $140.00 and set an "outperform" rating on the stock in a report on Thursday, April 23rd. Raymond James Financial dropped their target price on ServiceNow from $160.00 to $130.00 and set an "outperform" rating for the company in a research report on Thursday, April 23rd. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $121.00 target price on shares of ServiceNow in a research report on Tuesday, May 5th. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $141.85.

About ServiceNow

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.

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