Salesforce, Inc. (NYSE:CRM) CEO Marc Benioff has sold a portion of his company stock, transactions that are part of a prearranged trading plan. According to the latest regulatory filings, Benioff sold a total of 15,000 shares in multiple transactions on March 26, 2024, for a total value exceeding $4.5 million.
The shares were sold at weighted average prices that varied within a range. The first batch of 5,230 shares was sold at prices ranging from $305.10 to $306.08, the second batch of 7,804 shares ranged from $306.22 to $307.21, and the final set of 1,966 shares sold between $307.23 and $307.80. Following these sales, Benioff still retains a substantial number of shares in the company, with direct ownership and through the Marc R. Benioff Revocable Trust.
These sales were executed automatically under a Rule 10b5-1 trading plan, which Benioff had adopted on September 21, 2023. Such plans allow company insiders to establish predetermined trading arrangements for selling stocks at a time when they are not in possession of material non-public information, providing a defense against potential accusations of insider trading.
The filings also indicated that Benioff has indirect ownership of 10 million shares through the Marc Benioff Fund LLC, highlighting his ongoing significant investment in the company.
Investors often monitor insider transactions for insight into executives' perspectives on their company's stock value and future performance. However, sales made under Rule 10b5-1 plans are typically less indicative of an insider’s belief in the company's future prospects due to their predetermined nature.
Salesforce has not provided any additional comments on these transactions. Benioff's role as Chair and CEO remains unchanged, and he continues to be one of the key figures at the helm of the cloud-based software company.
InvestingPro Insights
Salesforce's (NYSE:CRM) recent insider trading activity comes amidst a backdrop of notable financial metrics and analyst optimism. According to InvestingPro data, Salesforce boasts a market capitalization of $292.37 billion, reflecting its significant presence in the software industry. The company's revenue for the last twelve months as of Q4 2024 stood at $34.86 billion, with an impressive revenue growth of 11.18%. This growth is also reflected in its gross profit margin, which is a robust 75.5%.
InvestingPro Tips highlight Salesforce's strong financial health and market position. The company has a perfect Piotroski Score of 9, indicating top-notch financial stability. In addition, 33 analysts have revised their earnings expectations upwards for the upcoming period, signaling confidence in Salesforce's continued performance. These factors may provide reassurance to investors following CEO Marc Benioff's recent stock sales.
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