On September 8, 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 broader trend of insider selling at Salesforce Inc, which we will explore in this article.
Who is Marc Benioff?
Marc Benioff is the Chair and CEO of Salesforce Inc, a leading provider of enterprise software, delivered through the cloud, with a focus on customer relationship management (CRM, Financial) products. Benioff founded the company in 1999 and has since led it to become one of the most innovative and successful companies in its industry. His leadership has been instrumental in shaping Salesforce's unique culture and commitment to social responsibility.
About Salesforce Inc
Salesforce Inc is a global leader in customer relationship management (CRM, Financial) technology. The company provides 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 professional cloud services. Salesforce's services are designed to help businesses connect with their customers in a whole new way, enabling them to build more meaningful and lasting relationships.
Insider Sell Analysis
Over the past year, the insider has sold a total of 1,335,725 shares and purchased 0 shares. This recent transaction of 15,000 shares is part of a larger trend of insider selling at Salesforce Inc. In fact, there have been 252 insider sells over the past year, with 0 insider buys.
The relationship between insider selling and stock price can be complex. While it's common to see stock prices decline following insider selling, this is not always the case. In the case of Salesforce Inc, the stock price has remained relatively stable despite the ongoing insider selling.
Valuation
On the day of the insider's recent sell, shares of Salesforce Inc were trading for $224.23 apiece, giving the company a market cap of $219.23 billion. The price-earnings ratio is 141.70, which is higher than the industry median of 27.65 but lower than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, Salesforce Inc is modestly undervalued. With a price of $224.23 and a GuruFocus Value of $263.74, Salesforce Inc has a price-to-GF-Value ratio of 0.85.
In conclusion, while the insider's recent sell of 15,000 shares is part of a broader trend of insider selling at Salesforce Inc, the company's stock remains modestly undervalued according to the GuruFocus Value. Investors should keep a close eye on further insider transactions and other market indicators to make informed investment decisions.
