Salesforce, Inc. (NYSE:CRM) CEO Marc Benioff has sold a total of $4,296,587 worth of the company's stock, according to a recent SEC filing. The transactions, which took place on May 16, 2024, involved multiple sales at prices ranging from $285.0932 to $290.00 per share.
The sales were conducted under a prearranged 10b5-1 trading plan, which allows company insiders to set up a trading schedule in advance to avoid any accusations of trading on insider information. This kind of plan is often used by corporate executives to dispel any concerns about the timing of their stock sales or purchases.
Benioff's transactions included selling 1,696 shares at a weighted average price of approximately $285.09, with individual sales prices between $284.57 and $285.49. Another 8,600 shares were sold at an average price of around $286.25, with a price range of $285.67 to $286.66. Additionally, 4,000 shares were sold at an average of $286.97, ranging from $286.68 to $287.67, while 500 shares were sold at an average price of $288.42, with a range between $288.02 and $288.69. Finally, 204 shares were sold at exactly $290.00.
Following these transactions, Benioff still holds a significant number of Salesforce shares directly or through the Marc R. Benioff Revocable Trust. Additionally, the Marc Benioff Fund LLC, which is also associated with Benioff, holds a substantial interest in Salesforce's common stock.
Investors often monitor insider buying and selling as it can provide insights into the executive's view of the company's current valuation and future prospects. However, it is important to note that insider transactions can be motivated by a variety of personal financial considerations and do not necessarily indicate a change in company fundamentals.
InvestingPro Insights
Amid the news of Salesforce CEO Marc Benioff's stock sales, investors and market watchers are keen to understand the broader financial context of Salesforce (NYSE:CRM). According to real-time data from InvestingPro, Salesforce boasts a substantial market capitalization of $277.18 billion, reflecting its significant presence in the software industry. The company's P/E ratio, a key indicator of how much investors are willing to pay for each dollar of earnings, stands at 67.35, which points to a high earnings multiple that InvestingPro Tips suggest is indicative of the company trading at a premium. This aligns with the tip that Salesforce is trading at a high EBITDA valuation multiple.
Further enriching this financial snapshot, Salesforce's revenue growth over the last twelve months as of Q4 2024 has been reported at 11.18%, demonstrating a solid upward trajectory in sales. This growth is complemented by a robust gross profit margin of 75.5%, underscoring the company's efficiency in maintaining profitability amidst its revenue streams.
The InvestingPro Tips also highlight that Salesforce has a perfect Piotroski Score of 9, suggesting strong financial health and operational efficiency. Additionally, the company's cash flows have been found to sufficiently cover interest payments, which is reassuring for investors concerned about the company's debt levels and financial resilience.
For those interested in gaining deeper insights and additional tips on Salesforce, there are 11 more InvestingPro Tips available that can provide further clarity on the company's financial health and market position. Access these valuable insights and benefit from an additional 10% off a yearly or biyearly Pro and Pro+ subscription by using the coupon code PRONEWS24.
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