Salesforce, Inc. (NYSE:CRM) CEO and Chair Marc Benioff has sold a substantial number of company shares, according to a recent SEC filing. The transactions, which occurred on April 10, 2024, involved the sale of Salesforce common stock amounting to over $4.4 million.
Benioff sold a total of 15,000 shares in three separate transactions, with prices ranging from $298.87 to $300.56. The first batch of 6,417 shares was sold at an average price of approximately $298.87. The second sale of 7,529 shares fetched an average price of about $299.73. The final transaction involved 1,054 shares sold at an average price of around $300.56.
The sales were executed 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 pre-arranged plan to buy or sell stocks at a predetermined time to avoid accusations of insider trading.
Following the sales, Benioff still holds a significant amount of Salesforce stock, with direct ownership of over 12.9 million shares. Additionally, the Marc Benioff Fund LLC holds 10 million shares indirectly.
Investors and followers of Salesforce's stock will likely keep an eye on such transactions as they reflect the actions of company insiders, which can sometimes provide insights into their perspective on the company's future performance.
InvestingPro Insights
As Salesforce's CEO and Chair Marc Benioff makes headline news with his recent stock sales, investors take a closer look at the company's financial health and market performance. According to InvestingPro data, Salesforce maintains a robust market capitalization of $290.39 billion, reflecting its significant presence in the industry. Despite a high earnings multiple with a P/E ratio of 70.48, the company's strong revenue growth over the last twelve months, reported at 11.18%, suggests a continuing upward trajectory in its business operations.
The company's stock has also experienced a large price uptick over the last six months, with a 46.06% return, which aligns with its high return over the last year at 59.95%. These metrics are indicative of the company's strong performance and may offer some context to Benioff's recent transactions. Additionally, the company's gross profit margin stands impressively at 75.5%, underscoring its efficiency in generating profit from its revenues.
InvestingPro Tips highlight that Salesforce is a prominent player in the Software industry, with cash flows that can sufficiently cover interest payments. Moreover, the company operates with a moderate level of debt, which is an important factor for investors considering the financial stability of the company. For those looking to delve deeper into Salesforce's financials and future prospects, InvestingPro offers additional insights and tips. There are 15 more InvestingPro Tips available for Salesforce, which can be accessed at https://www.investing.com/pro/CRM. To gain comprehensive access to these valuable insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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