Salesforce, Inc. (NYSE:CRM) CEO and Chair Marc Benioff has sold a total of $3,535,651 worth of company stock, according to a recent SEC filing. The transactions took place on June 4, 2024, and were executed at varying prices ranging from $233.3738 to $240.2084.
The sales occurred automatically under a pre-arranged Rule 10b5-1 trading plan, which was adopted by Benioff on December 29, 2023. This type of trading plan allows company insiders to sell a predetermined number of shares at a predetermined time, providing an affirmative defense against accusations of trading on nonpublic information.
The filing detailed multiple transactions in which Benioff disposed of shares in different tranches. Prices for these sales varied, with the lowest selling price reported at $233.3738 per share and the highest at $240.2084 per share. The SEC filing includes footnotes indicating that the shares were sold in multiple transactions at prices within these ranges.
Following these transactions, Benioff still holds a substantial number of shares directly or through the Marc R. Benioff Revocable Trust. Additionally, the Marc Benioff Fund LLC, which is indicated in the footnotes, holds interests in Salesforce stock either in Benioff's name or in trust.
Investors often monitor insider transactions as they may provide insights into executives' perspectives on the company's current valuation and future prospects. Salesforce's stock performance and market activity are closely watched, as the company remains a leading entity in the cloud computing and customer relationship management sectors.
The transactions were filed with the Securities and Exchange Commission and are publicly accessible for review. Benioff's recent stock sales contribute to the ongoing analysis of Salesforce's financial movements and the decisions of its top executives.
In other recent news, Salesforce reported an 11% year-over-year increase in its fiscal 2025 first-quarter earnings, with revenues reaching $9.13 billion. The company's subscription and support segment contributed significantly to this performance, witnessing a 12% rise. Despite economic challenges, Salesforce has maintained its revenue forecast for the fiscal year at $37.7 billion to $38 billion. These are recent developments that highlight Salesforce's robust growth focus, especially in AI transformation and strategic investments. The company's Data Cloud has been a key growth driver, with successful customer integrations. Salesforce executives have also projected a GAAP diluted EPS of $6.04 to $6.12 and non-GAAP diluted EPS of $9.86 to $9.94 for FY25. However, the first quarter faced challenges with lower bookings due to a compressed sales environment and changes in the sales team.
InvestingPro Insights
In light of Salesforce CEO Marc Benioff's recent stock sales, it's pertinent to consider the financial health and market valuation of Salesforce, Inc. (NYSE:CRM). According to real-time data from InvestingPro, Salesforce boasts a substantial market capitalization of $229.31 billion, reflecting its prominent position in the software industry. With a P/E ratio of 42.01, the company trades at a high earnings multiple, which could indicate investors' confidence in its future growth or a premium for its market position.
InvestingPro Tips suggest that Salesforce has a perfect Piotroski Score of 9, which implies a strong financial position, and it operates with impressive gross profit margins of 76.0% over the last twelve months as of Q1 2025. These figures highlight the company's ability to maintain profitability and operational efficiency. Additionally, Salesforce's cash flows are robust enough to sufficiently cover interest payments, pointing towards a stable financial structure.
Despite recent price fluctuations, with the stock taking a notable hit over the last week, month, and quarter, Salesforce remains a key player in its industry. Analysts predict the company will be profitable this year, and it has been profitable over the last twelve months. Moreover, Salesforce has delivered a high return over the last decade, reinforcing its long-term value proposition to investors.
For readers interested in a deeper dive into Salesforce's financial metrics and additional expert analysis, InvestingPro offers a comprehensive array of InvestingPro Tips. Currently, there are 14 additional tips available on https://www.investing.com/pro/CRM, which could provide valuable insights for investors. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment research with premium insights and data.
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