Salesforce, Inc. (NYSE:CRM) CEO and Chair Marc Benioff has sold a portion of his company stock, according to a recent filing with the Securities and Exchange Commission. The transactions, which took place on April 29, 2024, involved the sale of Salesforce shares worth over $4.1 million.
The SEC filing detailed three separate sales transactions where a total of 15,000 shares were sold at prices ranging from $273.9833 to $275.9304. Specifically, Benioff sold 2,629 shares at an average price of approximately $273.98, 10,844 shares at around $274.83, and 1,527 shares at nearly $275.93.
Following these transactions, the CEO still holds a significant stake in the company, with direct ownership of 12,737,327 shares, excluding additional indirect holdings.
These sales were conducted automatically pursuant to a pre-arranged Rule 10b5-1 trading plan, which Benioff adopted on December 29, 2023. Such plans allow company insiders to sell shares over a predetermined period of time to avoid concerns about transactions based on the current market conditions or the possession of non-public information.
Investors often monitor insider transactions as they may provide insights into executives' views on the company's current valuation and future prospects. However, automatic trading plans like the one Benioff has in place are designed to mitigate such concerns by setting up trades in advance.
The filing also noted that Benioff has indirect ownership of 10,000,000 Salesforce shares through the Marc Benioff Fund LLC, emphasizing his continued investment in the company he co-founded.
Salesforce, headquartered in San Francisco, California, is a leader in cloud-based customer relationship management software and has been expanding its enterprise software offerings in recent years.
For more detailed information regarding the specific transactions, including the number of shares sold at each separate price within the range, the SEC filing indicated that Benioff is prepared to provide full information upon request.
InvestingPro Insights
As Salesforce's CEO Marc Benioff adjusts his holdings, investors and potential shareholders are keen to understand the underlying financial health and market position of Salesforce (NYSE:CRM). According to InvestingPro data, Salesforce has a robust market capitalization of $260.54 billion. The company's Price to Earnings (P/E) ratio stands at 63.48, reflecting a premium valuation that the market is willing to pay for its earnings, which is further underscored by an adjusted P/E ratio for the last twelve months as of Q4 2024 at 49.58.
In terms of growth, Salesforce has demonstrated a solid revenue increase, with an 11.18% growth over the last twelve months as of Q4 2024, and a quarterly revenue growth of 10.77% in Q4 2024. This indicates a consistent upward trajectory in the company's financial performance. Additionally, the Gross Profit Margin for the same period is an impressive 75.5%, highlighting the company's ability to maintain profitability.
InvestingPro Tips for Salesforce reveal some critical insights. Notably, the company has a perfect Piotroski Score of 9, suggesting strong financial health. Furthermore, analysts predict that Salesforce will be profitable this year, which is reinforced by the fact that the company has been profitable over the last twelve months. These factors, combined with the company's status as a prominent player in the Software industry, offer a glimpse into its competitive standing and potential for sustained growth.
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