Salesforce, Inc. (NYSE:CRM) reported that Co-Founder and Chief Technology Officer Parker Harris sold a portion of his company shares on June 18, 2024, according to a recent regulatory filing. The transactions were executed automatically through a pre-arranged trading plan.
Harris sold a total of 2,800 shares of Salesforce common stock at an average price of $118.04, amounting to a total value of $330,512. In addition, he disposed of 775 shares at a weighted average price of $229.785, 1,474 shares at $230.7496, and 551 shares at $231.7722, with the total sale value exceeding $645,914. The sale prices for these shares ranged from $229.3800 to $232.1900.
The transactions were part of an automatic trading plan, known as a Rule 10b5-1 trading plan, which Harris had adopted on September 26, 2023. Such plans allow company insiders to sell shares over a predetermined period of time to avoid concerns about insider trading.
Following these sales, Harris still holds a substantial number of shares directly and indirectly through various trusts and LLCs. The direct holdings in Salesforce common stock after the transactions stand at 115,762 shares. Additionally, holdings in indirect forms such as family trusts and LLCs managed by Harris and his spouse are reported, with the largest being 946,987 shares held by The G. Parker Harris III & Holly L. Johnson Family Trust.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, it's important to note that such transactions can be motivated by a variety of personal financial considerations and do not always indicate a change in company fundamentals.
Salesforce, headquartered in San Francisco, California, is a leading provider of cloud-based customer relationship management software and applications for businesses. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol CRM.
In other recent news, Salesforce has reported an 11% year-over-year growth in its fiscal 2025 first-quarter earnings, with a revenue increase to $9.13 billion. The company's subscription and support segment saw a 12% rise, contributing significantly to the overall performance. Despite a challenging economic environment, Salesforce maintained its full-year revenue guidance at $37.7 billion to $38 billion. Oppenheimer reaffirmed its confidence in Salesforce, maintaining an Outperform rating with a steady price target of $280.00. The firm's endorsement came after a meeting with Salesforce's Senior Vice President for Product Management, Generative AI and Search, Kaushal Kurapati. Salesforce's Data Cloud has been a strong contributor to growth, with 25% of large deals including it. The company's international expansion and multi-cloud deals were also highlighted as growth levers. For FY25, Salesforce expects non-GAAP operating margin of 32.5% and GAAP operating margin of approximately 20%, along with anticipated operating cash flow growth between 21% and 24%. Salesforce projects GAAP diluted EPS of $6.04 to $6.12 and non-GAAP diluted EPS of $9.86 to $9.94 for FY25.
InvestingPro Insights
In the wake of recent insider transactions at Salesforce, Inc. (NYSE:CRM), market participants are scrutinizing the company's financial health and future outlook. According to the latest data from InvestingPro, Salesforce boasts a robust market capitalization of $234.88 billion, highlighting its significant presence in the industry.
The company's financial metrics demonstrate its strong market position, with a gross profit margin for the last twelve months as of Q1 2025 standing at an impressive 76.0%. This aligns with one of the InvestingPro Tips, which cites Salesforce's impressive gross profit margins. Additionally, Salesforce's price-to-earnings (P/E) ratio is currently at 43.15, indicating a high earnings multiple which suggests investors are expecting higher future earnings growth compared to the broader market.
InvestingPro Tips further reveal that Salesforce is a prominent player in the software industry and that the company operates with a moderate level of debt, ensuring its cash flows can sufficiently cover interest payments. However, it's worth noting that 28 analysts have revised their earnings expectations downwards for the upcoming period, which could be an important consideration for potential investors.
For those looking to delve deeper into Salesforce's financials and forecasts, InvestingPro offers a comprehensive array of additional tips—13 in total, including insights on profitability, stock performance over various timeframes, and valuation multiples. To access these insights and more, visit https://www.investing.com/pro/CRM. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment research capabilities.
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