On July 27, 2023, Marc Benioff, the Chair and CEO of Salesforce Inc (CRM, Financial), sold 15,000 shares of the company. This move is part of a larger trend of insider selling within the company over the past year.
Marc Benioff is a well-known figure in the tech industry. He co-founded Salesforce in 1999 and has since served as its Chair and CEO. Under his leadership, Salesforce has grown into a leading provider of enterprise software, specializing in customer relationship management (CRM, Financial) services. The company's innovative cloud-based solutions have revolutionized the way businesses manage their customer relationships and interactions.
Over the past year, Benioff has sold a total of 952,425 shares and has not made any purchases. This recent sale of 15,000 shares is just a fraction of his total transactions over the past year.
The insider transaction history for Salesforce Inc shows a clear trend of insider selling. Over the past year, there have been 236 insider sells and no insider buys. This could be a signal to investors about the company's future prospects, although it's important to note that insider selling can occur for a variety of reasons, not all of which are negative.
On the day of Benioff's recent sale, shares of Salesforce were trading at $227.76, giving the company a market cap of $219.73 billion. This is a significant increase from the company's initial public offering (IPO) price, reflecting the company's substantial growth over the past two decades.
Despite the high price-earnings ratio of 593.68, which is significantly higher than the industry median of 28.32, Salesforce's stock appears to be modestly undervalued based on its GuruFocus Value of $300.87. The price-to-GF-Value ratio of 0.76 suggests that the stock is trading below its intrinsic value.
The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts. Despite the recent insider selling, the stock's modest undervaluation could present an attractive opportunity for investors.
In conclusion, while Marc Benioff's recent sale of 15,000 shares is part of a larger trend of insider selling at Salesforce, the company's stock appears to be modestly undervalued. Investors should consider these factors, along with the company's strong market position and innovative product offerings, when making investment decisions.
