Salesforce, Inc. (NYSE:CRM) CEO and Chair Marc Benioff has sold a significant portion of his shares in the company, totaling over $4 million. The transactions took place on May 3, 2024, as indicated in a recent filing.
Benioff sold 6,260 shares at a weighted average price of $274.0986, with the sale prices ranging from $273.5407 to $274.5300. Additionally, he sold 3,400 shares at an average price of $274.97, within a price range of $274.5500 to $275.5200. Another batch of 4,235 shares was sold at an average of $275.9455, with individual sales prices between $275.5500 and $276.5400. The final set of 1,105 shares was traded at an average price of $276.7384, with the range being $276.5500 to $277.1100.
Following these sales, Benioff remains a significant shareholder in Salesforce, with a direct holding of 12,677,327 shares, in addition to the 10,000,000 shares held indirectly through Marc Benioff Fund LLC.
The sales were conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to establish a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. This mechanism is intended to prevent any accusations of insider trading.
Investors tracking insider transactions at Salesforce may view these sales as part of Benioff's portfolio management strategy. The CEO's remaining stake in the company continues to align his interests closely with those of other shareholders.
For further details on the specific prices and volumes of shares sold, Benioff has committed to providing full information upon request to the issuer, any security holder, or the staff of the Securities and Exchange Commission.
The transactions were reported to the SEC on May 6, 2024, and were executed automatically pursuant to the aforementioned trading plan established in late December of the previous year.
InvestingPro Insights
As Salesforce CEO Marc Benioff navigates his personal stock portfolio, Salesforce Inc. (NYSE:CRM) presents a mix of financial metrics that could be of interest to investors. With a market capitalization of $267.29 billion, the company stands as a substantial player in the software industry, reflecting its significant market presence and the scale of its operations. This is further underscored by the company's revenue, with the last twelve months as of Q4 2024 showing a solid $34.86 billion, marking an 11.18% growth.
Investors may also note Salesforce's P/E ratio of 64.72, which indicates a high earnings multiple. This suggests that the market has high expectations for the company's future earnings growth. However, this is somewhat mitigated by the company's PEG ratio of 0.03, which could imply that the stock's price is reasonable relative to its earnings growth potential. Additionally, the company has demonstrated profitability over the last twelve months, aligning with analysts' predictions for the year.
Two InvestingPro Tips that stand out in relation to Salesforce's current financial landscape are:
- Salesforce has a perfect Piotroski Score of 9, which indicates a strong financial position and may be a positive sign for investors looking at the company's fundamental health.
- The company operates with a moderate level of debt, which suggests that it has maintained a balance between leveraging opportunities for growth and maintaining financial stability.
For investors seeking a deeper dive into Salesforce's financials and additional insights, there are more InvestingPro Tips available on the platform. For instance, Salesforce's cash flows can sufficiently cover interest payments, which is a reassuring sign for debt sustainability. With a total of 12 additional tips listed on InvestingPro, users can gain a more nuanced understanding of the company's financial outlook.
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