On August 9, 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 renowned figure in the tech industry, known for his role in shaping Salesforce into a leading cloud-based software company. Under his leadership, Salesforce has grown exponentially, providing customer relationship management services to businesses worldwide. The company's innovative approach to business software has revolutionized the industry, making Salesforce a key player in the tech sector.
Salesforce Inc, headquartered in San Francisco, California, is a global leader in customer relationship management (CRM, Financial) technology. The company's cloud-based platforms provide a comprehensive suite of services, including sales force automation, customer service and support, marketing automation, digital commerce, community management, analytics, application development, IoT integration, collaborative productivity tools, AI, and blockchain.
Over the past year, Benioff has sold a total of 1,069,025 shares and purchased none. This recent sale of 15,000 shares is part of this larger trend. The insider transaction history for Salesforce Inc shows a total of 240 insider sells over the past year, with no insider buys.
On the day of Benioff's recent sale, Salesforce Inc shares were trading at $207.42 apiece, giving the company a market cap of $202.84 billion. The price-earnings ratio stands at 548.03, significantly higher than the industry median of 27.95 and the company's historical median price-earnings ratio.
Despite the high price-earnings ratio, Salesforce Inc appears to be significantly undervalued based on its GuruFocus Value of $303.23, with a price-to-GF-Value ratio of 0.68.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
The ongoing trend of insider selling at Salesforce Inc, coupled with the stock's current undervaluation, presents an interesting scenario for investors. While the insider selling could be seen as a negative signal, the stock's significant undervaluation according to its GF Value suggests potential upside. Investors should keep a close eye on Salesforce Inc's stock performance and insider transactions in the coming months.
