Salesforce, Inc. (NYSE:CRM) has reported a significant stock transaction by its Chair and CEO, Marc Benioff. According to the latest filings, Benioff sold a total of $4,152,411 worth of Salesforce shares. The sales occurred on April 17, 2024, with prices ranging from $276.01 to $278.70.
The transaction details reveal that Benioff sold shares in multiple tranches. The first set of 3,293 shares was sold at an average price of $276.01, while another 8,446 shares were sold at an average of $276.81. A third batch of 3,172 shares exchanged hands at an average price of $277.68, and the final lot of 89 shares was sold at an average of $278.70.
Following these transactions, Benioff still holds a substantial number of shares in the company. The reporting indicates that his direct holdings amount to 12,857,327 shares of common stock. Additionally, Benioff has indirect ownership through the Marc Benioff Fund LLC, which holds 10,000,000 shares.
The sales were conducted under a Rule 10b5-1 trading plan, which was previously adopted by Benioff on December 29, 2023. Such plans allow company insiders to establish pre-planned transactions at a time when they are not in possession of material non-public information, providing a defense against accusations of insider trading.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on their company's stock value. Salesforce has not provided any official statement regarding these transactions as of yet.
Benioff's recent move to sell a portion of his Salesforce holdings has caught the attention of the market, and shareholders will be looking for any potential implications this might have on the company's future.
InvestingPro Insights
Amidst the recent stock transactions by Salesforce's CEO, Marc Benioff, the company's financial health and market performance come under scrutiny. With a market capitalization of $263.69 billion, Salesforce (NYSE:CRM) is a significant player in the software industry. Reflecting on the company's valuation, Salesforce's P/E ratio stands at 63.89, suggesting a premium compared to some industry peers. However, it's worth noting that the adjusted P/E ratio for the last twelve months as of Q4 2024 is slightly lower at 50.11, indicating expectations of earnings growth.
Revenue growth remains a bright spot, with an 11.18% increase over the last twelve months as of Q4 2024, demonstrating Salesforce's ability to expand its sales in a competitive market. The company's gross profit margin is impressive at 75.5%, showcasing its high profitability per dollar of sales. However, with a recent price decline over the last week, the stock has experienced a 7.63% drop in total return, capturing investor attention on its short-term volatility.
Two InvestingPro Tips that are particularly pertinent in light of Benioff's transactions are the company's perfect Piotroski Score of 9, which indicates strong financial health, and the fact that the stock is currently in oversold territory according to the RSI, which might suggest a potential rebound. For investors seeking deeper insights, there are additional InvestingPro Tips available, including Salesforce's earnings multiples and debt levels, which can be found at https://www.investing.com/pro/CRM. To access these valuable tips and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.