Salesforce, Inc. (NYSE:CRM) Co-Founder and Chief Technology Officer of Slack, Harris Parker, has recently sold a significant amount of company stock, according to a new SEC filing. The transactions, executed on June 11, 2024, involved the sale of Salesforce shares totaling over $673,000.
The sales were carried out in multiple transactions at varying prices, with the lowest at $237.3605 and the highest at $243.3858 per share. The SEC filing detailed that Parker sold 177 shares at an average price of $237.3605, 176 shares at $238.4045, 411 shares at $239.3106, 994 shares at $240.4873, 903 shares at $241.3852, 101 shares at $242.9041, and 38 shares at $243.3858.
In addition to the sales, Parker also acquired 2,800 shares of Salesforce common stock at a price of $118.04 per share, totaling $330,512. These shares were acquired through the exercise of options, which were not part of the sale transactions.
Following these transactions, Parker's direct ownership in Salesforce common stock has changed, as indicated by the updated post-transaction amounts in the SEC filing. It's important to note that these figures do not include shares that may be held indirectly through various trusts and LLCs managed by Parker and his spouse.
The SEC filing included footnotes explaining that the reported transactions were executed automatically pursuant to a pre-established trading plan under Rule 10b5-1, which allows company insiders to set up a trading plan for selling stocks at a time when they are not in possession of material non-public information.
As is standard with such filings, the document includes an offer by Parker to provide additional details to the issuer, any security holder, or the SEC staff upon request regarding the specific prices at which the individual sales were made within the reported range.
Investors and followers of Salesforce, Inc. will likely keep an eye on insider trading activity as an indicator of executives' confidence in the company's future performance.
In other recent news, Salesforce.com Inc (NYSE:CRM) has been the focus of positive projections following its Q1 earnings report and analyst evaluations. The company posted an 11% year-over-year growth in its Q1 earnings, with revenue rising to $9.13 billion. Salesforce's subscription and support segment saw a 12% increase, significantly contributing to the overall performance. Despite economic challenges, the company maintained its full-year revenue guidance at $37.7 billion to $38 billion.
Analysts from Oppenheimer have reaffirmed their confidence in Salesforce, maintaining an Outperform rating with a steady price target of $280.00. This follows discussions with Salesforce's Senior Vice President for Product Management, Generative AI and Search, Kaushal Kurapati, which provided insights into the company's strategic focus and product development.
In terms of future expectations, Salesforce anticipates a non-GAAP operating margin of 32.5% and GAAP operating margin of approximately 20% for FY25, with anticipated operating cash flow growth between 21% and 24%. The company also projects GAAP diluted EPS of $6.04 to $6.12 and non-GAAP diluted EPS of $9.86 to $9.94 for FY25. Q2 expected revenue is forecasted between $9.2 billion and $9.25 billion, up 7% to 8% YoY.
InvestingPro Insights
As Salesforce's Co-Founder and Chief Technology Officer of Slack, Harris Parker, engages in notable trading activity, it becomes increasingly relevant to look at the company's financial health and market performance. According to InvestingPro data, Salesforce boasts a strong gross profit margin of 76.0% over the last twelve months as of Q1 2025, highlighting the company's efficiency in managing its cost of goods sold and asserting its impressive profitability.
Despite recent insider sales, the company's robust market position is further reflected by its substantial market capitalization, which stands at $228.4 billion. Additionally, Salesforce's price is currently at 73.99% of its 52-week high, suggesting a potential room for growth according to some market analysts who have set a fair value target at $300, above the previous close price of $240.99.
For those looking to delve deeper into Salesforce's financials, InvestingPro provides an array of InvestingPro Tips that could offer further insights into the company's performance and valuation. For instance, Salesforce is recognized for its perfect Piotroski Score of 9, indicating high financial health, and it is also noted for operating with a moderate level of debt, which may reassure investors about the company's financial stability.
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