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Salesforce CEO Marc Benioff sells over $4.2 million in stock

Published 05/23/2024, 05:02 PM
© Reuters.

Salesforce, Inc. (NYSE:CRM) CEO and Chair, Marc Benioff, has sold a portion of his company shares, transactions that total over $4.2 million. The sales occurred on May 22, 2024, with prices per share ranging from $283.518 to $286.5874.

The sales were executed through a series of transactions, each at varying prices within the stated range. The first set of shares sold amounted to 6,103 at a weighted average price of $283.518. Another set of 943 shares were sold at an average of $284.514. The transactions continued with 4,459 shares sold at an average price of $285.8891, and a final batch of 3,495 shares at $286.5874 on average.

These sales were conducted automatically under a Rule 10b5-1 trading plan, which Benioff had adopted on December 29, 2023. This plan allows company insiders to set up a predetermined schedule for selling stocks at a time when they are not in possession of material non-public information, providing an affirmative defense against accusations of insider trading.

Following these transactions, Benioff still holds a significant amount of Salesforce stock directly or through the Marc R. Benioff Revocable Trust, as well as through the Marc Benioff Fund LLC. The remaining direct holdings after the sales are substantial, ensuring that his interests remain closely aligned with those of other shareholders.

Investors often monitor the buying and selling activity of top executives as it may provide insights into their perspective on the company's current valuation and future prospects. However, automated trading plans like the one Benioff has in place are designed to remove such discretionary decision-making from the process.

The sales come at a time when Salesforce continues to be a dominant player in the cloud-based software industry, with a broad portfolio of solutions that cater to various aspects of customer relationship management and enterprise application needs.

InvestingPro Insights

Recent transactions by Salesforce's CEO Marc Benioff have stirred interest among investors, who are keen to understand the current valuation and future prospects of the company. In light of these events, InvestingPro provides some insights into the company's financial health and market performance.

InvestingPro Data highlights Salesforce's robust market capitalization, currently at $270.18 billion USD, which underscores the company's significant presence in the software industry. With a P/E ratio of 65.38, the company is trading at a high earnings multiple, possibly reflecting investor confidence in its growth potential. Meanwhile, the P/E Ratio (Adjusted) for the last twelve months as of Q4 2024 stands at 51.35, pointing to a somewhat moderated valuation over the long term.

Revenue growth remains a strong point for Salesforce, with an 11.18% increase over the last twelve months as of Q4 2024, demonstrating the company's ability to expand its income streams in a competitive market. This is further supported by a significant EBITDA growth of 63.38% for the same period, indicating efficient operational management and profitability.

One of the InvestingPro Tips for Salesforce is its perfect Piotroski Score of 9, suggesting that the company is financially healthy and well-positioned for future growth. Additionally, Salesforce is recognized for its low price volatility, which might appeal to investors looking for stable investments in the tech sector.

For those interested in further insights, InvestingPro offers additional tips on Salesforce, including its valuation multiples and profitability predictions. There are 13 InvestingPro Tips available, which can be explored in detail at https://www.investing.com/pro/CRM. To access these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

As investors consider the implications of the CEO's stock sales, these financial metrics and expert tips can provide a richer context for understanding Salesforce's market position and investment potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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