On July 31, 2023, Amy Weaver, President and CFO of Salesforce Inc (CRM, Financial), sold 16,275 shares of the company. This move is part of a broader trend of insider selling at Salesforce Inc, which we will explore in this article.
Who is Amy Weaver?
Amy Weaver is the President and CFO of Salesforce Inc, a leading provider of enterprise software, delivered through the cloud, with a focus on customer relationship management (CRM, Financial). Weaver has been with the company for several years, playing a crucial role in its financial management and strategic direction.
About Salesforce Inc
Salesforce Inc is a global leader in customer relationship management (CRM, Financial) software. The company provides enterprise software, including sales and customer service applications, marketing automation, analytics, and application development, all delivered through the cloud. Salesforce's services allow businesses to use cloud technology to better connect with their customers, partners, and potential clients.
Insider Sell Analysis
Over the past year, Amy Weaver has sold a total of 80,937 shares and purchased 0 shares. This recent sale of 16,275 shares is part of a broader trend of insider selling at Salesforce Inc. Over the past year, there have been 237 insider sells and 0 insider buys.
The high volume of insider selling could be a signal to investors. Insiders may sell their shares for various reasons, but they sell them, not buy them, when they think the price will decline.
Stock Price and Valuation
On the day of Amy Weaver's recent sale, shares of Salesforce Inc were trading at $222.92, giving the company a market cap of $218.44 billion. The price-earnings ratio is 590.18, significantly higher than the industry median of 28.37 and the company's historical median price-earnings ratio.
Despite the high P/E ratio, Salesforce Inc appears to be modestly undervalued based on its GF Value. With a price of $222.92 and a GuruFocus Value of $301.23, Salesforce Inc has a price-to-GF-Value ratio of 0.74.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
Conclusion
While the insider selling trend at Salesforce Inc may raise some eyebrows, the company's modest undervaluation based on its GF Value suggests that the stock could still be a good investment. However, investors should always do their own research and consider other factors before making investment decisions.
