In a recent transaction, Marc Benioff, Chair and CEO of Salesforce, Inc. (NYSE:CRM), sold a total of $4.53 million worth of company stock. The shares were sold at prices ranging from $300.23 to $305.23. This move comes as part of an automated trading plan established by Benioff on December 29, 2023.
The sales occurred on April 9, 2024, and involved several tranches of Salesforce common stock. The first batch of 3,500 shares was sold at an average price of $300.23, while another 3,000 shares were sold at an average of $301.18. A further 5,558 shares were disposed of at an average price of $302.01, followed by 2,263 shares at $303.26, 551 shares at $304.54, and the final batch of 128 shares at $305.23.
Following these transactions, Benioff's direct holdings in Salesforce stock amounted to 12,921,166 shares. It is important to note that these shares are held either in Benioff's name or in the Marc R. Benioff Revocable Trust.
In addition to the sales, Benioff also acquired 52,555 shares of Salesforce common stock at no cost, which were earned based on the achievement of applicable performance criteria related to a performance-based restricted stock unit award. These shares will vest subject to his continued employment through April 15, 2024.
The transactions were executed automatically under a pre-arranged stock trading plan, known as a Rule 10b5-1 plan, which allows company insiders to sell shares at predetermined times to avoid potential accusations of insider trading.
Salesforce investors and analysts typically monitor insider sales for insights into executive sentiment regarding the company's future prospects. Benioff's recent stock transactions provide a snapshot of his current investment moves but do not necessarily signal a change in company strategy or performance.
InvestingPro Insights
As Salesforce's CEO Marc Benioff adjusts his stake in the company, investors are keenly observing the company's performance metrics. According to InvestingPro data, Salesforce (NYSE:CRM) has a robust market capitalization of $290.79 billion, reflecting its significant presence in the software industry. The company's P/E ratio stands at 70.42, indicating a high earnings multiple which aligns with one of the InvestingPro Tips that Salesforce is trading at a high earnings multiple.
Another notable InvestingPro Tip for Salesforce is that the stock generally trades with low price volatility, which could be a reassuring factor for investors in light of the CEO's recent stock transactions. This is particularly relevant considering the company's substantial growth over the past year, with revenue growth in the last twelve months as of Q4 2024 reported at 11.18%.
Investors may also find comfort in the fact that Salesforce's cash flows can sufficiently cover interest payments, a sign of financial stability. With a strong gross profit margin of 75.5% in the last twelve months as of Q4 2024, the company's profitability is evident. Additionally, the stock is trading near its 52-week high, currently at 94.67% of that peak, which can be an indicator of positive investor sentiment and market confidence.
For those looking to delve deeper into Salesforce's financial health and future prospects, InvestingPro offers additional insights and tips. There are currently 15 more InvestingPro Tips available for Salesforce, which can be accessed through InvestingPro. For readers interested in a comprehensive analysis, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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