Salesforce, Inc. (NYSE:CRM) CEO Marc Benioff has sold a substantial number of shares in the company, according to a recent filing with the Securities and Exchange Commission. The transactions, which took place on May 20, 2024, involved the sale of company common stock totaling over $4.3 million.
Benioff, who also serves as the Chair of the tech giant, offloaded shares in a series of transactions at prices that ranged from $285.8636 to $287.5322. The sales were executed automatically under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Benioff had adopted on December 29, 2023.
The specifics of the sales included a batch of 1,210 shares sold at an average price of $285.8636, another 13,632 shares at an average price of $286.9811, and a final set of 158 shares at an average price of $287.5322. Following these transactions, Benioff's direct holdings in Salesforce stock have been adjusted to 12,512,327 shares.
The SEC filing also notes that Benioff has indirect ownership of 10,000,000 shares through the Marc Benioff Fund LLC, indicating a significant investment in the company's future.
Investors often monitor the trading activities of top executives for insights into their perspective on the company's valuation and future performance. However, sales under Rule 10b5-1 plans are scheduled in advance to avoid any potential conflict with insider trading regulations, which suggests that these transactions may not necessarily be directly related to the executive's market outlook.
Salesforce, headquartered in San Francisco, is a leader in the customer relationship management software industry and continues to be a major player in cloud-based solutions for businesses worldwide.
InvestingPro Insights
As Salesforce, Inc. (NYSE:CRM) navigates the market, recent data from InvestingPro offers a snapshot of the company's financial health and valuation. With a market capitalization of $275.25 billion, Salesforce stands as a tech behemoth in the software industry. The company's Price-to-Earnings (P/E) ratio, which currently stands at 66.85, suggests that investors are willing to pay a premium for Salesforce's earnings, reflecting its status as a prominent player in the Software industry, as per one of the InvestingPro Tips.
Another key metric, the P/E ratio adjusted for the last twelve months as of Q4 2024, is at 52.31, indicating a high valuation when compared to historical earnings. The company's revenue growth remains robust, with an 11.18% increase over the last twelve months as of Q4 2024, underscoring its ability to expand its market share and sales. This growth is complemented by a solid gross profit margin of 75.5%, which demonstrates Salesforce's efficiency in managing its cost of goods sold and maintaining profitability.
Investors looking for further insights into Salesforce's performance can find additional InvestingPro Tips on the company's financials and market position. With a perfect Piotroski Score of 9, Salesforce's financial health is deemed strong, and its cash flows are reported to sufficiently cover interest payments. The company is also said to operate with a moderate level of debt, which may provide some reassurance to investors concerned about financial risk.
For those interested in diving deeper into Salesforce's financial landscape and seeking additional investment guidance, InvestingPro offers a wealth of tips. There are 12 more InvestingPro Tips available for Salesforce, which can be accessed by subscribers. To enjoy these insights, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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