David Schmaier, President and Chief Product Officer of Salesforce, Inc. (NYSE:CRM), sold 889 shares of the company's common stock on October 23, 2024. The shares were sold at an average price of $285.29, amounting to a total transaction value of $253,621. Following this sale, Schmaier holds 20,276 shares in the company.
The transaction was part of a series of activities involving restricted stock units that vested based on Schmaier's continued employment. On October 22, 2024, he acquired 1,769 shares through the conversion of restricted stock units, which did not involve any cash transaction. This acquisition increased his holdings before the subsequent sale of shares to cover tax obligations related to the vesting.
These transactions highlight the ongoing management of equity awards by Salesforce's executives, reflecting standard practices in executive compensation.
In other recent news, Salesforce.com Inc (NYSE:CRM). reported strong second-quarter earnings, with earnings per share of $2.56, an 8% increase in sales, and a 9% rise in subscription and support revenues. In addition, Salesforce acquired Zoomin and Own Company for $1.9 billion in cash. Analyst firms Piper Sandler and Wolfe Research have maintained an Overweight and Outperform rating respectively, emphasizing Salesforce's potential for margin expansion and free cash flow growth. However, Erste Group and TD Cowen have downgraded the stock to Hold due to projected slower growth. Salesforce has also launched Agentforce, an AI-driven suite of autonomous bots, and reported a 130% year-over-year growth in its paid customer base. The company has formed a partnership with IBM (NYSE:IBM) to integrate advanced AI capabilities into its platform. These are recent developments that highlight Salesforce's ongoing efforts to remain at the forefront of the customer relationship management industry. Investment firm Starboard Value LP has also outlined potential value creation opportunities at Salesforce during the 2024 Active-Passive Investor Summit.
InvestingPro Insights
As David Schmaier adjusts his Salesforce holdings, it's worth examining the company's current financial position and market performance. According to InvestingPro data, Salesforce boasts a substantial market capitalization of $271.63 billion, underlining its position as a major player in the software industry.
The company's financial health appears robust, with InvestingPro Tips highlighting Salesforce's impressive gross profit margins. This is supported by the data showing a gross profit margin of 76.35% for the last twelve months as of Q2 2025, indicating strong pricing power and efficient cost management.
Salesforce's revenue growth remains positive, with a 10.26% increase over the same period, reaching $36.47 billion. This growth, coupled with the company's profitability over the last twelve months, aligns with another InvestingPro Tip suggesting that analysts predict continued profitability for the year.
While Salesforce trades at a P/E ratio of 48.92, which might seem high at first glance, an InvestingPro Tip notes that the company is actually trading at a low P/E ratio relative to its near-term earnings growth. This is further supported by a remarkably low PEG ratio of 0.19, potentially indicating an undervalued stock relative to its growth prospects.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights, with 12 more tips available for Salesforce. These could provide valuable context for understanding the company's position in the competitive software landscape and its potential for future growth.
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