Salesforce, Inc. (NYSE:CRM) CEO Marc Benioff has sold a significant portion of his holdings in the company, according to a recent regulatory filing. The transactions, which took place on April 12, involved the sale of company common stock totaling over $4.4 million.
The sales occurred through multiple transactions at prices ranging from $294.42 to $297.85. Specifically, Benioff sold 3,816 shares at an average price of $294.42, 3,452 shares at an average price of $295.15, 4,555 shares at an average price of $296.27, 3,077 shares at an average price of $297.17, and 100 shares at $297.85.
Following these transactions, Marc Benioff still holds a substantial number of shares in Salesforce, a company he co-founded in 1999 and has led to become one of the leading cloud-based software companies globally. The shares sold by Benioff were held directly in his name or by the Marc R. Benioff Revocable Trust.
The filing indicated that these sales were pre-arranged under a Rule 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading. This plan had been adopted by Benioff on December 29, 2023.
Investors often monitor insider transactions for insights into executives' perspectives on their company's prospects. However, sales under a 10b5-1 trading plan are typically viewed as less indicative of insider sentiment, given their pre-planned nature.
Salesforce has not commented on the transactions, and the filing does not suggest any change in Benioff's role as Chair and CEO of the company.
InvestingPro Insights
As Salesforce, Inc. (NYSE:CRM) CEO Marc Benioff adjusts his holdings, investors and analysts alike are keenly observing the company's financial metrics and market performance. The recent sale of shares by Benioff coincides with Salesforce's robust market presence and financial health, as reflected in key real-time data from InvestingPro.
With a substantial market capitalization of $263.72 billion, Salesforce stands as a significant player in the software industry. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, is 64.26, indicating a high earnings multiple that suggests investors expect higher future growth compared to the broader market. This aligns with the InvestingPro Tip that Salesforce is trading at a high earnings multiple.
InvestingPro Data also highlights Salesforce's revenue growth, with an 11.18% increase in the last twelve months as of Q4 2024, demonstrating the company's ability to expand its sales in a competitive environment. Additionally, the gross profit margin is reported at an impressive 75.5%, reflecting efficient operations and a strong market position.
Investors looking for stability may find comfort in Salesforce's low price volatility, as noted in one of the InvestingPro Tips. This characteristic can be particularly appealing in a market that has faced significant fluctuations.
For those seeking more in-depth analysis and additional insights, InvestingPro offers a wealth of InvestingPro Tips for Salesforce, with a total of 14 tips available, including the company's moderate level of debt and its high return over the last decade. To access these valuable insights, visit InvestingPro's Salesforce page and take advantage of the special offer using coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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