On September 12, 2023, Parker Harris, Co-Founder and Chief Technology Officer (CTO) of Salesforce Inc (CRM, Financial), sold 1,250 shares of the company's stock. This recent transaction is part of a larger trend for the insider, who over the past year has sold a total of 360,240 shares and purchased none.
Parker Harris is a key figure at Salesforce Inc, a company he co-founded in 1999. As the CTO, Harris is responsible for ensuring that the company's technology strategy serves its business strategy. Salesforce Inc is a leading provider of enterprise software, delivered through the cloud, with a focus on customer relationship management (CRM, Financial).
The insider transaction history for Salesforce Inc shows a clear trend: over the past year, there have been no insider buys and 255 insider sells. This could be a signal to investors about the insiders' confidence in the company's current stock price.
On the day of the insider's recent sell, shares of Salesforce Inc were trading for $223.1 each, giving the company a market cap of $212.89 billion. The price-earnings ratio is 137.61, which is higher than the industry median of 27.32 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 business performance estimates, Salesforce Inc is modestly undervalued. With a price of $223.1 and a GuruFocus Value of $263.01, the stock has a price-to-GF-Value ratio of 0.85.
The recent sell by the insider could be interpreted in different ways. It could be a personal financial decision or it could be based on the insider's assessment of the company's current valuation and future prospects. However, the overall trend of insider selling at Salesforce Inc, combined with the company's valuation, suggests that potential investors should carefully consider these factors before making an investment decision.
As always, insider transactions should not be used in isolation when making investment decisions. They are just one piece of the puzzle and should be used in conjunction with other information, such as the company's financial health, its competitive position, and the overall market conditions.
