Salesforce, Inc. (NYSE:CRM) CEO Marc Benioff has sold a total of $4,152,578 worth of company stock, according to a recent SEC filing. The transactions, which took place on May 13, 2024, involved shares sold at prices ranging between $276.43 and $277.13.
Benioff, who also serves as the Chair of the tech giant, executed the sales automatically under a pre-arranged Rule 10b5-1 trading plan established in late December of the previous year. This plan allows corporate insiders to sell shares at predetermined times to avoid accusations of insider trading.
The filing detailed two separate transactions. In the first, Benioff sold 6,232 shares of Salesforce stock at an average price of $276.43, and in the second, he sold 8,768 shares at an average price of $277.13. Following these sales, Benioff still retains a significant portion of Salesforce stock, with direct ownership and indirect ownership through the Marc R. Benioff Revocable Trust.
Additionally, the filing noted that Marc Benioff Fund LLC, which holds interests in the name of Benioff or in trust, owns 10,000,000 shares of Salesforce.
Investors often watch the buying and selling activities of company executives for insights into their perspective on the company's future performance. While the sale of stock by an executive can be for personal financial management and does not necessarily indicate a lack of confidence in the company, it is still information that shareholders and potential investors consider when evaluating their investments.
The transactions were carried out in compliance with regulatory standards, and Benioff is committed to providing full information on the sales upon request, as per the filing's footnotes.
Salesforce has not made any official statement regarding these transactions at the time of this report.
InvestingPro Insights
As Salesforce, Inc. (NYSE:CRM) navigates the market, its CEO Marc Benioff's recent stock sale has caught the attention of investors. To provide further context, let's delve into some key financial metrics and insights from InvestingPro. Salesforce boasts a significant market capitalization of $268.47 billion, reflecting its stature as a prominent player in the software industry. This is complemented by a robust revenue growth of 11.18% over the last twelve months as of Q1 2024, indicating the company's ability to expand its financial top line in a competitive sector.
Despite the CEO's stock sale, Salesforce's fundamentals exhibit strong points. The company has a perfect Piotroski Score of 9, suggesting it is in top financial health. Additionally, Salesforce has been profitable over the last twelve months, with the analysts predicting it will maintain profitability this year. Investors might find these insights particularly reassuring, considering the executive's stock transaction.
However, the company's valuation metrics indicate that it is trading at a high earnings multiple, with a P/E ratio of 65.15 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 51.03. These figures suggest that the stock might be priced at a premium compared to its earnings, which could be a point of consideration for value-focused investors.
For those seeking a comprehensive analysis, InvestingPro offers additional insights on Salesforce, including a total of 12 InvestingPro Tips that can guide investment decisions. To explore these tips and gain a deeper understanding of Salesforce's financial health and market position, visit https://www.investing.com/pro/CRM. And don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, further enhancing your investment research capabilities.
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