Salesforce, Inc. (NYSE:CRM) CEO Marc Benioff sold a total of 12,000 shares of company stock on June 6, 2024, for over $3.65 million. The transactions were executed at varying prices, ranging from $240.35 to $246.21, according to a recent Form 4 filing with the Securities and Exchange Commission.
The sales were conducted under a Rule 10b5-1 trading plan, which was previously adopted by Benioff on December 29, 2023. Such plans allow company insiders to sell shares over a predetermined period of time, reducing the potential for market manipulation or insider trading accusations.
Benioff's transactions on June 6 included the sale of 660 shares at an average price of $240.35, with the price ranging from $240.00 to $240.74. Another 1,410 shares were sold at an average price of $241.55, with a range from $241.06 to $242.02. Additionally, 4,204 shares were sold at an average price of $242.63, within a price range of $242.10 to $243.09. The CEO also sold 4,547 shares at an average price of $243.50, ranging from $243.10 to $244.09, and 1,522 shares at an average price of $244.54, with a range from $244.12 to $245.09. The largest single transaction was for 2,399 shares sold at an average price of $245.69, ranging from $245.16 to $246.16, followed by a sale of 258 shares at an average price of $246.21, within a price range of $246.21 to $246.25.
Following these sales, Benioff still holds a substantial number of Salesforce shares. The Form 4 filing indicates that post-transaction, the CEO directly owns 12,332,327 shares. Additionally, there are holdings attributed to the Marc R. Benioff Revocable Trust and other indirect holdings.
The same filing also reported a gift of securities by Benioff to his spouse, totaling 214,000 shares, which does not affect the total number of shares owned by Benioff but does change the nature of the ownership. These transactions were non-monetary and thus reported with a transaction total of $0.
Salesforce investors and followers of the company's stock movements often monitor insider sales as a signal of the executives' confidence in the company's future performance. However, it is essential to note that such sales can be part of regular financial planning strategies and do not necessarily indicate a negative outlook.
In other recent news, Salesforce reported an 11% year-over-year growth in its fiscal 2025 first-quarter earnings, with revenues reaching $9.13 billion. The company's subscription and support segment saw a 12% rise, significantly contributing to the overall performance. Despite economic challenges, Salesforce maintained its revenue forecast for the fiscal year at $37.7 billion to $38 billion. The company's strategic investments and focus on AI transformation, supported by managing over 250 petabytes of customer data, were highlighted. Salesforce's Data Cloud has been a significant growth driver, with customer successes noted in using the platform. Furthermore, Salesforce projects a GAAP diluted EPS of $6.04 to $6.12 and non-GAAP diluted EPS of $9.86 to $9.94 for FY25. The company's second-quarter revenue is forecasted to be between $9.2 billion and $9.25 billion, up 7% to 8% YoY.
InvestingPro Insights
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On the valuation front, Salesforce is currently trading at a high earnings multiple, with a P/E ratio of 43.07, reflecting a premium market valuation that investors are willing to pay for its earnings potential. Additionally, the company's market capitalization stands at a robust $234.23 billion USD, exemplifying its prominence as a major player in the software industry.
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