Salesforce, Inc. (NYSE:CRM) Chairman and CEO Marc Benioff has sold a total of $3.6 million worth of company stock, according to a recent SEC filing. The transactions took place on June 10, 2024, with the prices per share ranging from $241.10 to $242.80.
The filing indicates that Benioff sold 6,213 shares at an average price of $241.10, followed by a sale of 6,604 shares at an average price of $241.98. He then proceeded to sell another 2,183 shares at an average price of $242.80. These sales were executed in multiple transactions at prices within the ranges specified in the footnotes of the SEC Form 4 filing.
Following these transactions, Benioff still holds a significant number of shares in Salesforce. The report details that Benioff's direct holdings, including those in the Marc R. Benioff Revocable Trust, amount to over 12 million shares after the sales. Additionally, the filing reveals indirect holdings through a trust and the Marc Benioff Fund LLC, amounting to over 10 million shares.
The SEC document also notes that the sales were conducted automatically pursuant to a Rule 10b5-1 trading plan adopted by Benioff on December 29, 2023. Rule 10b5-1 allows company insiders to set up a predetermined plan to sell company stock in order to avoid accusations of insider trading.
Investors often monitor insider transactions for insights into executives' confidence in their company's prospects. However, automatic trading plans like the one Benioff has in place indicate that such sales are preplanned and not necessarily a direct response to recent company developments.
Salesforce's stock performance and other relevant financial details can be tracked under its trading symbol CRM on the New York Stock Exchange.
In other recent news, Salesforce reported a year-over-year growth of 11% in its fiscal 2025 first-quarter earnings, with a revenue increase to $9.13 billion. The company's subscription and support segment experienced a 12% rise, significantly contributing to the overall performance. Despite a challenging economic environment, Salesforce maintained its full-year revenue guidance at $37.7 billion to $38 billion. Analyst firm Oppenheimer has reaffirmed its confidence in Salesforce, maintaining an Outperform rating with a steady price target of $280.00. The firm's endorsement follows a meeting with Salesforce's Senior Vice President for Product Management, Generative AI and Search, Kaushal Kurapati. The discussions highlighted Salesforce's strategic focus and product development, particularly in the areas of artificial intelligence (AI) and data management. Salesforce's management team conveyed a positive outlook regarding the company's AI platform capabilities and the potential for monetization of its Data Cloud and generative AI solutions. For FY25, Salesforce projects GAAP diluted EPS of $6.04 to $6.12 and non-GAAP diluted EPS of $9.86 to $9.94. The Q2 expected revenue is forecasted between $9.2 billion and $9.25 billion, up 7% to 8% YoY.
InvestingPro Insights
In light of the recent insider transactions by Salesforce, Inc. (NYSE:CRM) Chairman and CEO Marc Benioff, investors may find the following InvestingPro Insights particularly relevant. Salesforce boasts an impressive gross profit margin of 76.0% in the last twelve months as of Q1 2023, reflecting its strong ability to control costs and maintain profitability in its operations. Moreover, the company's cash flows have been robust enough to sufficiently cover interest payments, which is a testament to its financial stability.
On the valuation front, Salesforce is currently trading at a high earnings multiple, with a P/E ratio of 42.85. While this may suggest a premium market valuation, it is important to note that the company has been a prominent player in the Software industry, which could justify higher valuation metrics. Additionally, Salesforce has a perfect Piotroski Score of 9, indicating sound financial health and operational efficiency.
For those looking for more in-depth analysis, there are 11 additional InvestingPro Tips available at https://www.investing.com/pro/CRM, which could provide further context on Salesforce's financial performance and market position. Interested readers can utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of financial data and expert insights.
InvestingPro Data also reveals that Salesforce has a market capitalization of $233.62 billion and has experienced a revenue growth of 11.04% over the last twelve months as of Q1 2023. This growth is indicative of the company's ability to expand its market share and increase its top-line figures steadily. The company's strong financials and strategic position may provide investors with the confidence needed amidst the news of insider selling.
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