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

ServiceNow, Inc. (NYSE:NOW) was the recipient of some unusual options trading activity on Thursday. Stock traders bought 179,416 call options on the company. This represents an increase of 17% compared to the average daily volume of 153,597 call options.

ServiceNow Trading Down 1.6%

NYSE NOW traded down $1.52 during trading on Thursday, hitting $93.94. 32,069,637 shares of the company’s stock traded hands, compared to its average volume of 23,763,428. The stock has a fifty day moving average of $104.67 and a two-hundred day moving average of $108.16. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84. ServiceNow has a 12-month low of $81.24 and a 12-month high of $210.20. The firm has a market cap of $96.86 billion, a P/E ratio of 55.92, a PEG ratio of 1.71 and a beta of 0.96.

ServiceNow (NYSE:NOW) last announced its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.04. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The firm had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same quarter in the previous year, the company posted $0.81 earnings per share. The business’s revenue was up 24.0% on a year-over-year basis. As a group, sell-side analysts expect that ServiceNow will post 2.33 EPS for the current year.

Insider Activity

In related news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total transaction of $130,845.00. Following the completion of the sale, the director owned 44,930 shares of the company’s stock, valued at approximately $3,919,243.90. This trade represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anita M. Sands sold 16,445 shares of the business’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the transaction, the director owned 30,090 shares of the company’s stock, valued at approximately $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 28,071 shares of company stock worth $2,529,956. Company insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in NOW. Wealth Watch Advisors INC purchased a new stake in ServiceNow in the third quarter worth about $29,000. Kelleher Financial Advisors bought a new position in shares of ServiceNow during the third quarter valued at $50,000. Pin Oak Investment Advisors Inc. raised its holdings in ServiceNow by 20.7% in the third quarter. Pin Oak Investment Advisors Inc. now owns 134 shares of the information technology services provider’s stock worth $123,000 after buying an additional 23 shares during the last quarter. Jupiter Wealth Management LLC bought a new stake in shares of ServiceNow in the 2nd quarter worth $154,000. Finally, CBIZ Investment Advisory Services LLC lifted its holdings 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 valued at $25,000 after purchasing an additional 135 shares in the last quarter. 87.18% of the stock is currently owned by institutional investors.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow delivered Q2 earnings of $0.90 per share on revenue of $3.99 billion, both ahead of estimates, with subscription revenue up 24.5% year over year. ServiceNow Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company raised its full-year subscription revenue forecast again, signaling that AI-powered workflow demand is translating into stronger bookings and long-term growth visibility. ServiceNow raises annual subscription revenue forecast again on AI-driven demand
• Positive Sentiment: Management said AI contract value surpassed the $1 billion mark, a key milestone that supports the bullish view that ServiceNow’s AI products are becoming a meaningful growth driver. ServiceNow AI Contract Value Crosses $1 Billion Milestone, Stock Soars
• Positive Sentiment: Several analysts turned more constructive after earnings, including Baird, RBC, BTIG, Piper Sandler, Needham and BMO, with multiple price-target increases pointing to continued upside potential. ServiceNow Posts Robust Q2 As AI Momentum Continues To Build
• Neutral Sentiment: There was also notable options activity, with traders buying more call options than usual, suggesting elevated expectations for continued post-earnings volatility.
• Negative Sentiment: Some articles noted that shares had been under pressure earlier in the year as investors worried AI could disrupt legacy software vendors, so part of the move reflects relief rather than a full reset in sentiment. Why ServiceNow Stock Was Slipping Today

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on NOW. Guggenheim upgraded ServiceNow from a “neutral” rating to a “buy” rating and set a $125.00 price target for the company in a research report on Wednesday, July 1st. Cantor Fitzgerald upped their price objective on shares of ServiceNow from $122.00 to $141.00 and gave the stock an “overweight” rating in a research report on Monday. Capital One Financial raised their target price on shares of ServiceNow from $105.00 to $120.00 and gave the company an “overweight” rating in a research note on Tuesday, May 5th. Sanford C. Bernstein reiterated an “outperform” rating on shares of ServiceNow in a research report on Thursday. Finally, Jefferies Financial Group reissued a “buy” rating and issued a $140.00 price target (up from $135.00) on shares of ServiceNow in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $142.98.

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.