In a recent transaction, Marc Benioff, Chair and CEO of Salesforce, Inc. (NYSE:CRM), sold a significant number of shares in the company. The executive parted with a total of $4.08 million worth of stock, with individual share prices ranging from $270.46 to $276.23.
The series of stock sales occurred on April 18, 2024, and were executed automatically according to a pre-arranged trading plan under Rule 10b5-1, which was adopted on December 29, 2023. This rule allows insiders to set up a trading plan for selling stocks they own in a way that avoids accusations of insider trading.
Benioff's transactions involved multiple sales at various prices within the given range. The sales were conducted at weighted average prices, and the specific number of shares sold at each price point within the range can be provided upon request to the issuer, any security holder, or the staff of the Securities and Exchange Commission.
Following these transactions, Benioff still holds a substantial amount of Salesforce shares directly or through the Marc R. Benioff Revocable Trust, as well as indirectly through the Marc Benioff Fund LLC, which owns 10 million shares.
Salesforce, headquartered in San Francisco, California, is a leading company in the prepackaged software industry. These recent sales by the CEO represent a notable change in his investment in the company, yet Benioff maintains a significant stake in Salesforce's ongoing success.
InvestingPro Insights
As Salesforce's CEO Marc Benioff adjusts his stake in the company with recent stock sales, current and prospective investors might be interested in the latest financial data and analytics from InvestingPro. Salesforce (NYSE:CRM) continues to be a heavyweight in the software industry, with a robust market capitalization of $262.01 billion. Despite the recent sale by Benioff, the company's financial health remains a point of interest for investors.
For those evaluating the company's stock, Salesforce has an adjusted P/E ratio of 49.86, reflecting a premium valuation that investors are willing to pay for its earnings potential. The company's revenue for the last twelve months as of Q4 2024 stands at an impressive $34.86 billion, with a solid revenue growth of 11.18%. This growth is a testament to Salesforce's market position and its ability to expand its revenue streams.
InvestingPro Tips reveal that Salesforce has a perfect Piotroski Score of 9, indicating strong financial health, and the RSI suggests the stock is currently in oversold territory, which could be an attractive entry point for investors. These insights, along with additional metrics and tips, are available on InvestingPro. In fact, there are 13 more tips listed on the platform that could further guide investment decisions. For those interested in a deeper analysis, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
With a significant return over the last decade, and analysts predicting profitability this year, Salesforce remains a prominent player in its sector. The company's cash flows are also robust enough to sufficiently cover interest payments, and it operates with a moderate level of debt, which could be reassuring for investors concerned about financial stability.
As Marc Benioff's recent stock sales make headlines, these InvestingPro Insights can provide a clearer picture of Salesforce's financial landscape and help investors make more informed decisions.
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