ServiceNow Sees Unusually Large Options Volume (NYSE:NOW)

ServiceNow, Inc. (NYSE:NOW) was the recipient of some unusual options trading activity on Friday. Investors acquired 127,278 put options on the company. This is an increase of 602% compared to the typical daily volume of 18,141 put options.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is set to buy Armis for $7.75 billion to expand its AI-driven security and device?visibility capabilities — a strategic move to broaden enterprise security offerings and cross?sell into large customers. NOW Expands Portfolio on Acquisitions: What’s Ahead for the Stock?
• Positive Sentiment: Independent coverage highlights the Armis deal and positions it as an important strategic acquisition that strengthens ServiceNow’s security stack and AI roadmap. ServiceNow (NOW)’s Armis. Acquisition is Important, Says Jim Cramer
• Positive Sentiment: Guggenheim raised its rating on ServiceNow from Sell to Neutral after the stock’s pullback, saying recent weakness brought valuation closer to fair value — a vote that may limit further downside if execution stays intact. Guggenheim Raises ServiceNow (NOW) Rating to Neutral After Stock Slide
• Neutral Sentiment: Partner ecosystem update — RChilli integrated with ServiceNow’s Partner Portal to add AI-driven recruitment capabilities; incremental commercial benefit but limited near-term revenue impact. RChilli Integrates with ServiceNow to Power AI-Driven Recruitment on the Partner Portal
• Negative Sentiment: Unusually large options activity: traders bought ~127,278 put contracts (a ~602% jump vs. typical put volume), signaling elevated short-term bearish bets or hedging that could pressure the stock. ServiceNow Sees Unusually High Options Volume (NYSE:NOW)

Insider Activity at ServiceNow

In related news, insider Jacqueline P. Canney sold 470 shares of the company’s stock in a transaction on Tuesday, November 18th. The shares were sold at an average price of $165.42, for a total transaction of $77,745.52. Following the completion of the sale, the insider directly owned 15,135 shares of the company’s stock, valued at approximately $2,503,571.16. This represents a 3.01% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $161.60, for a total value of $242,400.00. Following the completion of the transaction, the director directly owned 47,930 shares in the company, valued at $7,745,488. This trade represents a 3.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 15,310 shares of company stock valued at $2,533,585 over the last quarter. Company insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

Several large investors have recently added to or reduced their stakes in NOW. Vanguard Group Inc. raised its stake in shares of ServiceNow by 1.6% in the third quarter. Vanguard Group Inc. now owns 20,210,924 shares of the information technology services provider’s stock worth $18,599,709,000 after acquiring an additional 315,861 shares during the last quarter. State Street Corp increased its holdings in shares of ServiceNow by 1.4% in the third quarter. State Street Corp now owns 9,454,699 shares of the information technology services provider’s stock valued at $8,700,970,000 after purchasing an additional 131,080 shares in the last quarter. Geode Capital Management LLC raised its position in ServiceNow by 2.0% in the 2nd quarter. Geode Capital Management LLC now owns 4,574,563 shares of the information technology services provider’s stock worth $4,684,445,000 after purchasing an additional 88,057 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in ServiceNow by 7.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,843,117 shares of the information technology services provider’s stock worth $2,263,519,000 after buying an additional 188,292 shares in the last quarter. Finally, Norges Bank bought a new position in ServiceNow in the 2nd quarter valued at $2,589,235,000. 87.18% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the company. Wells Fargo & Company set a $255.00 target price on ServiceNow in a report on Thursday, October 30th. BMO Capital Markets reduced their target price on shares of ServiceNow from $232.00 to $230.00 and set an “outperform” rating on the stock in a research report on Thursday, October 30th. Arete Research upgraded shares of ServiceNow to a “hold” rating in a research note on Thursday, December 11th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $240.00 price target on shares of ServiceNow in a research note on Thursday, October 30th. Finally, Canaccord Genuity Group reissued a “buy” rating and issued a $224.00 price objective on shares of ServiceNow in a research report on Thursday, October 30th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $223.53.

ServiceNow Stock Performance

ServiceNow stock opened at $147.46 on Friday. The company has a fifty day moving average price of $165.87 and a two-hundred day moving average price of $179.96. The company has a market cap of $153.12 billion, a PE ratio of 89.15, a P/E/G ratio of 2.54 and a beta of 0.98. ServiceNow has a 12 month low of $135.73 and a 12 month high of $239.62. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.06 and a quick ratio of 1.06.

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.