Salesforce, Inc. (NYSE:CRM) CEO Marc Benioff has sold a total of $3.64 million worth of company stock, according to a recent SEC filing. The transactions, which took place on June 7, 2024, involved the sale of Salesforce common stock at prices ranging from $241.20 to $243.72 per share.
The filing indicates that Benioff sold 574 shares at an average price of $241.20, 7,776 shares at $242.18, 6,250 shares at $242.91, and 400 shares at $243.72, cumulatively amounting to the $3.64 million total. Following these transactions, Benioff's direct holdings in Salesforce stock have decreased, but he still maintains a significant stake in the company.
It is noted that these sales were executed automatically under a Rule 10b5-1 trading plan, which was established on December 29, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing a legal way to manage stock transactions without direct involvement at the time of the sale, and are often used to avoid accusations of insider trading.
In addition to the sales, the filing also reported a disposition of 32,870 shares as gifts to charitable organizations. These shares were not sold on the market and therefore did not contribute to the total sale value reported.
Benioff's remaining direct and indirect holdings, including those held in trusts and the Marc Benioff Fund LLC, represent a substantial investment in Salesforce. The transactions detailed in the SEC filing reflect a partial divestment by the CEO, but Benioff continues to hold a significant amount of Salesforce stock.
Investors and Salesforce stakeholders often monitor the trading activity of company insiders for insights into their confidence in the firm's future performance. However, automated trading plans like Benioff's can make it difficult to draw direct conclusions from such sales.
In other recent news, Salesforce reported an 11% year-over-year growth in its fiscal 2025 first-quarter earnings, with revenue rising to $9.13 billion. The company's subscription and support segment marked a 12% increase, contributing significantly to the overall performance. Despite economic challenges, Salesforce maintained its full-year revenue guidance at $37.7 billion to $38 billion. Oppenheimer, after a meeting with Salesforce's Senior Vice President for Product Management, reaffirmed its Outperform rating and maintained a steady price target of $280. The firm's confidence stems from Salesforce's strategic focus on artificial intelligence (AI) and data management, along with its robust customer base. Salesforce's Data Cloud, a key growth driver, was included in 25% of large deals. The company's international expansion and multi-cloud deals were also highlighted as growth levers. Looking forward, Salesforce expects 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%.
InvestingPro Insights
As Salesforce's CEO Marc Benioff adjusts his stake in the company, investors are keeping a close eye on Salesforce's financial metrics and market performance. According to recent data from InvestingPro, Salesforce (NYSE:CRM) holds a strong position in the market with an adjusted market capitalization of $234.34 billion. This is reflective of the company's ability to maintain a significant market presence within the competitive software industry.
One of the notable InvestingPro Tips for Salesforce is its impressive gross profit margins, which stand at 76.0% for the last twelve months as of Q1 2023. This indicates the company's efficiency in managing its costs relative to its revenue—a key factor that investors often consider when evaluating a company's financial health.
Additionally, Salesforce's price-to-earnings (P/E) ratio is 42.85, which suggests that the stock is trading at a high earnings multiple. While this could imply that the stock is priced optimistically relative to its earnings, it is important to note that analysts predict the company will be profitable this year. In fact, Salesforce has been profitable over the last twelve months, supporting the notion that the company's stock price may be justified by its performance.
For investors looking to delve deeper into Salesforce's financials and future outlook, there are further InvestingPro Tips available. In total, there are 11 additional tips listed on InvestingPro, which investors can access to gain more comprehensive insights into Salesforce's financial standing and market potential. For those interested in a deeper analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. These tips could provide valuable context to the recent insider trading activity and help shareholders make informed decisions.
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