Salesforce, Inc. (NYSE:CRM) CEO Marc Benioff has sold a total of $4,064,172 worth of company stock, according to a recent SEC filing. The transactions, which took place on April 19, 2024, involved multiple sales at prices ranging from $269.6091 to $272.3807 per share.
The filing indicates that Benioff executed these sales automatically pursuant to a Rule 10b5-1 trading plan, which was adopted on December 29, 2023. Rule 10b5-1 plans allow company insiders to set up predetermined trading schedules to sell stocks, thereby avoiding accusations of insider trading.
The sales were spread across four separate transactions. In the first, Benioff sold 3,614 shares at a weighted average price of $269.6091. The second transaction saw 4,252 shares sold at an average of $270.544. The third sale involved 4,658 shares at $271.5838 per share on average, and the final transaction included 2,476 shares at a weighted average price of $272.3807.
Following these transactions, the SEC filing shows that Benioff still holds a substantial number of shares directly or through the Marc R. Benioff Revocable Trust. Additionally, 10,000,000 shares are held indirectly by the Marc Benioff Fund LLC.
Investors often monitor insider sales as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, sales under Rule 10b5-1 plans are scheduled in advance and may not necessarily reflect the insider's view of the company's immediate financial outlook.
The filing was signed on behalf of Marc Benioff by Sarah Dale, Attorney-in-Fact, on April 22, 2024.
InvestingPro Insights
As Salesforce CEO Marc Benioff offloads company stock, investors and market watchers are keen to understand the financial health and market position of Salesforce, Inc. (NYSE:CRM). According to InvestingPro data, Salesforce boasts a substantial market capitalization of $265.46 billion, reflecting its significant presence in the software industry. The company’s P/E ratio stands at 64.72, which may seem elevated, indicating a high earnings multiple that suggests investors are expecting growth. Additionally, Salesforce has demonstrated strong revenue growth, with an 11.18% increase over the last twelve months as of Q1 2024.
Delving into the fundamentals with InvestingPro Tips, Salesforce is highlighted as a prominent player in the software industry, operating with a moderate level of debt and cash flows that can sufficiently cover its interest payments. Notably, the company has a perfect Piotroski Score of 9, which is a strong indicator of financial health. Furthermore, the Relative Strength Index (RSI) suggests that the stock is currently in oversold territory, which could be of interest to potential investors looking for entry points.
For those considering a deeper analysis, InvestingPro offers additional insights, including the fact that Salesforce has been profitable over the last twelve months and analysts predict the company will remain profitable this year. Moreover, the company has seen a large price uptick over the last six months, alongside a high return over the last decade. For more comprehensive research, there are 13 additional InvestingPro Tips available on the platform. Interested readers can explore these tips further by visiting https://www.investing.com/pro/CRM and can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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