Salesforce, Inc. (NYSE:CRM) President and COO Brian Millham has sold a total of 6,162 shares of company stock, netting over $1.7 million, according to a recent SEC filing. The transactions occurred on May 22, 2024, with the stock being sold at a price of $283.41 per share.
Prior to the sale, Millham exercised options to acquire a total of 6,162 shares of common stock under three separate transactions. The prices paid to exercise these options ranged from $186.51 to $218.21 per share, amounting to a total cost of approximately $1.27 million. These transactions were executed automatically pursuant to a pre-arranged trading plan under Rule 10b5-1, which allows insiders to set up a predetermined plan to buy or sell company stock.
The SEC filing revealed that after the sale, Millham no longer holds any shares of Salesforce's common stock directly. However, the executive still has a significant number of derivative securities, specifically stock options, that remain exercisable over the next several years.
Salesforce's stock has been subject to market fluctuations, and insider transactions such as these are closely watched by investors seeking insights into executive perspectives on the company's future performance.
For further details on the transactions, investors can refer to the full SEC Form 4 filing.
InvestingPro Insights
As Salesforce, Inc. (NYSE:CRM) sees insider activity with Brian Millham's recent stock sale, current and prospective investors might be curious about the company's financial health and market position. According to InvestingPro data, Salesforce boasts a substantial market capitalization of $270.18 billion, underlining its significant presence in the tech sector. Despite a relatively high P/E ratio of 65.38, the company's revenue has grown by 11.18% over the last twelve months as of Q4 2024, indicating a strong top-line expansion.
In terms of valuation, Salesforce is trading at a high earnings multiple, which is a point of interest for investors seeking growth stocks. The company's PEG ratio as of Q4 2024 stands at an intriguingly low 0.03, suggesting that the stock's price might be undervalued relative to its earnings growth potential. Moreover, Salesforce has proven its profitability over the past year, with a gross profit margin of 75.5%, reflecting efficient operations and a strong market position as a prominent player in the Software industry.
InvestingPro Tips highlight that Salesforce has a perfect Piotroski Score of 9, which is a strong indicator of the company's financial stability. Additionally, the stock generally trades with low price volatility, providing a sense of reliability for investors. For those interested in deeper analysis, there are 12 additional InvestingPro Tips available for Salesforce, which can be accessed at https://www.investing.com/pro/CRM. To further enhance your investing strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Keeping an eye on executive transactions is important, but understanding the broader financial context can offer a more comprehensive view of Salesforce's investment potential. These InvestingPro Insights serve to provide investors with a snapshot of the company's financial performance and market valuation, complementing the information provided by insider trading activity.
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