Salesforce CEO Marc Benioff sells over $11 million in company stock

Salesforce, Inc. (NYSE: CRM ) CEO Marc Benioff has sold a significant portion of his company shares, according to a recent SEC filing. The transactions, which took place on April 16, 2024, amounted to a total sale value of over $11 million. The series of sales were executed at varying prices, with individual shares being sold for between $273.121 and $280.0013.

The largest batch of shares sold by Benioff, amounting to 26,394 shares, was transacted at a weighted average price of $274.7725, totaling approximately $7.25 million. This sale was related to a tax withholding obligation associated with the vesting of performance-based restricted stock units. Other transactions included sales of smaller tranches of shares, totaling an additional $4.15 million, with prices per share ranging as mentioned above.

The sales were conducted under a prearranged Rule 10b5-1 trading plan, which was adopted by Benioff on December 29, 2023. Such trading plans allow insiders to set up a predetermined schedule for buying or selling stocks at a time when they are not in possession of material non-public information.

Following the transactions, Benioff still holds a substantial number of Salesforce shares. Directly and through the Marc R. Benioff Revocable Trust, the CEO maintains ownership of 12,898,721 shares. Additionally, the Marc Benioff Fund LLC indirectly holds 10,000,000 shares of Salesforce common stock.

Investors often monitor insider transactions as they may provide insights into executives' perspectives on the company's future performance. However, it is not uncommon for executives to sell shares for personal financial planning or diversification purposes.

Salesforce's stock performance and executive trading activities continue to be watched closely by the market, as the company remains a leader in the cloud-based software industry.

InvestingPro Insights

In the wake of Salesforce CEO Marc Benioff's share selling, investors and analysts are keeping a keen eye on the company's financial health and market performance. According to real-time data from InvestingPro, Salesforce (NYSE:CRM) is currently trading at a high earnings multiple with a P/E ratio of 65.26, which suggests a strong investor belief in the company's future earnings potential. This is further supported by the adjusted P/E ratio for the last twelve months as of Q4 2024, which stands at 50.94.

Despite the CEO's sale, Salesforce's fundamentals remain robust, as reflected in their gross profit margin of 75.5% for the same period, indicating a strong ability to control costs and maximize profit from sales. Furthermore, the company's revenue has grown by 11.18% over the last twelve months as of Q4 2024, highlighting its continued expansion in the software industry where it is a prominent player.

For investors seeking deeper insights, there are additional InvestingPro Tips that could prove invaluable. Salesforce has been profitable over the last twelve months and analysts predict the company will continue to be profitable this year. Also noteworthy is the company's perfect Piotroski Score of 9, indicating high financial health. For those interested in exploring these insights further, there are 11 more tips available on InvestingPro, which can be accessed with a special offer: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

With the next earnings date approaching on May 28, 2024, and the company's fair value estimated at $331.9 USD by InvestingPro, stakeholders and potential investors have much to consider. Salesforce's strategic position and financial data suggest a company that, despite the recent insider selling, is maintaining a trajectory that keeps it at the forefront of the software industry.

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