Salesforce, Inc. (NYSE:CRM) CEO Marc Benioff has sold a total of $4,292,952 worth of company stock, according to a recent SEC filing. The transactions took place on May 17, 2024, with prices ranging from $285.1854 to $286.799 per share.
Benioff, who also serves as Chair of the Salesforce board, engaged in multiple transactions to divest shares of the prepackaged software services giant. The sales were conducted under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which was adopted on December 29, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of insider trading.
The SEC filing detailed that the shares were sold in varying quantities at different price points within the specified range. The largest single sale was for 6,856 shares at an average price of $286.1156, while the smallest was for 2,694 shares at an average of $285.1854. An additional transaction included the sale of 5,450 shares at an average price of $286.799.
Following these transactions, Benioff still retains a substantial amount of Salesforce stock. The shares sold represent a fraction of his holdings, with direct ownership and indirect ownership through the Marc R. Benioff Revocable Trust and the Marc Benioff Fund LLC.
The filing also included a footnote indicating that the shares sold were held either directly in Benioff's name or in the aforementioned trust. The Marc Benioff Fund LLC, which also holds a significant number of shares, is reported to have interests held either directly by Benioff or in trust.
Investors and followers of Salesforce will likely keep an eye on these transactions, as insider sales can sometimes provide signals about executives' perspectives on the company's future performance. However, it is not uncommon for executives to sell stock for personal financial management reasons, unrelated to their outlook on the company.
Salesforce shares continue to be actively traded on the New York Stock Exchange, with investors watching closely as the company navigates the dynamic tech industry landscape.
InvestingPro Insights
As Salesforce, Inc. (NYSE:CRM) makes headlines with CEO Marc Benioff's recent stock sales, investors are considering various facets of the company's financial health and market performance. According to InvestingPro data, Salesforce boasts a substantial market cap of 278.32 billion USD, reflecting its significant presence in the software industry. The company's P/E ratio, a critical measure of its valuation, stands at 67.55, indicating a high earnings multiple that investors often scrutinize when assessing stock value.
Despite recent insider sales, Salesforce's financial metrics reveal a positive outlook. The company has demonstrated robust revenue growth, with an 11.18% increase in the last twelve months as of Q4 2024. This growth is supported by a strong gross profit margin of 75.5%, showcasing the company's ability to maintain profitability amidst competitive market pressures.
InvestingPro Tips highlight that Salesforce has a perfect Piotroski Score of 9, suggesting a healthy financial situation, and analysts predict the company will be profitable this year, which could reassure investors about the company's future performance. Additionally, the company's cash flows are reported to be more than sufficient to cover interest payments, a reassuring sign for debt management and financial stability. Salesforce operates with a moderate level of debt, further underscoring its prudent financial management.
For those looking to delve deeper into Salesforce's financial metrics and gain additional insights, InvestingPro offers more tips, including the company's valuation multiples and stock performance trends. With PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 11 additional InvestingPro Tips for an enriched investment perspective.
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