Salesforce, Inc. (NYSE:CRM) CEO Marc Benioff has sold a total of $4,200,857 worth of company stock, according to a recent SEC filing. The transactions occurred on May 23, 2024, and involved a series of sales at varying prices.
The sales were executed under a pre-arranged trading plan known as Rule 10b5-1, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading. The prices at which the shares were sold ranged from $278.007 to $286.6699.
Benioff, who also serves as the Chair of Salesforce, parted with shares in multiple transactions. The filing indicated that the shares were sold in different tranches, with prices per share spanning from the high $270s to almost $287, reflecting a weighted average across the sales.
Following these transactions, Benioff still holds a substantial number of shares in the company. The filing showed that after the sales, Benioff's direct holdings in Salesforce amounted to 12,467,327 shares. Additionally, it's noted that Benioff has indirect ownership through the Marc Benioff Fund LLC, which holds 10,000,000 shares of Salesforce.
Salesforce, headquartered in San Francisco, is a leading provider of cloud-based customer relationship management software and has been a key player in the technology sector.
Investors often monitor the buying and selling activity of company executives as it can provide insights into the leadership's perspective on the company's current valuation and future prospects. Benioff's recent stock sale represents a significant transaction by a key executive of Salesforce.
InvestingPro Insights
As Salesforce's CEO Marc Benioff makes headlines with his recent stock sale, investors are closely analyzing the company's financial health and market position. Salesforce (NYSE:CRM) is currently trading at a high earnings multiple, with a P/E ratio of 63.77, suggesting that investors have high expectations for the company's future earnings. According to InvestingPro data, the company's market capitalization stands at a robust $264.17 billion, underscoring its significant presence in the software industry.
InvestingPro Tips highlight that Salesforce operates with a moderate level of debt and has cash flows that can sufficiently cover interest payments. This financial stability is crucial for investors, especially when considering the company's high EBITDA valuation multiple. Furthermore, analysts are optimistic about Salesforce's profitability, predicting that the company will be profitable this year and noting that it has been profitable over the last twelve months.
The company's revenue for the last twelve months as of Q4 2024 is reported at $34.86 billion, with a healthy revenue growth of 11.18%. This growth is a testament to Salesforce's strong market position and its ability to expand its reach in the competitive software industry. With a gross profit margin of 75.5%, Salesforce demonstrates its ability to maintain profitability while scaling its operations.
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