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ServiceNow, Inc. (NYSE:NOW), a prominent software industry player with a market capitalization of $209.61 billion, saw its Chairman and CEO William R. McDermott recently sell a substantial portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, McDermott sold shares totaling approximately $2.07 million on May 30, 2025. The sales were executed at prices ranging from $1,006.70 to $1,020.00 per share, near the stock’s current trading level which has delivered a 50% return over the past year.
These transactions were conducted under a pre-established Rule 10b5-1 trading plan, which McDermott adopted on February 27, 2025. Following these sales, McDermott holds 6,614 shares directly. Additionally, he also has indirect ownership of 4,881 shares through a trust. According to InvestingPro, ServiceNow maintains impressive gross profit margins of 79% and strong financial health metrics, with 15+ additional insights available to subscribers.
This series of transactions reflects McDermott’s ongoing management of his equity in ServiceNow, a leading enterprise cloud computing company based in Santa Clara, California. The company currently appears overvalued according to InvestingPro’s Fair Value analysis, though it maintains robust financials with sufficient cash flows to cover interest payments.
In other recent news, ServiceNow has garnered attention with several significant developments. The company reported that its Core Business Workflows product group achieved $1.1 billion in annual recurring revenue, experiencing approximately 40% growth in net new annual contract value last quarter. This growth is attributed to strong traction with ServiceNow Assist and the Generative AI upgrade cycle. TD Cowen raised ServiceNow’s stock price target to $1,150, maintaining a Buy rating, while BMO Capital also increased its target to $1,150, citing confidence in the company’s growth prospects and product offerings. RBC Capital Markets maintained its Outperform rating with a $1,100 price target, highlighting ServiceNow’s potential to become an "AI agent of agents" and noting conservative estimates for 2025. Meanwhile, Bernstein analysts reiterated an Outperform rating with a $1,003 target, focusing on the impact of the Pro Plus (GenAI) products on future revenue growth. Additionally, ServiceNow is undergoing a reshuffle in its sales division, with the departure of top executives as part of its strategy to scale growth. Despite these changes, the company remains focused on reorienting its sales processes around AI-related products, projecting $1 billion in annual business from its flagship AI tool by next year.
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