On September 13, 2023, Marc Benioff, Chair and CEO of Salesforce Inc (CRM, Financial), sold 15,000 shares of the company. This move is part of a larger trend for the insider, who has sold a total of 1,373,825 shares over the past year and made no purchases.
Salesforce Inc is a leading company in the field of cloud-based software services. It provides a comprehensive suite of enterprise applications focused on customer service, marketing automation, analytics, and application development. The company's flagship product is a customer relationship management (CRM, Financial) system designed for businesses of all sizes and industries worldwide.
The insider's recent sell has raised questions about the relationship between insider trading and the stock price. Over the past year, there have been 255 insider sells and no insider buys for Salesforce Inc. This trend is illustrated in the following image:
Despite the insider's sell, Salesforce Inc's stock price remains robust. On the day of the insider's recent sell, shares of Salesforce Inc were trading for $219.71 apiece, giving the company a market cap of $212.87 billion. This price represents a price-earnings ratio of 137.60, which is higher than the industry median of 27.3 but lower than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, Salesforce Inc is modestly undervalued. With a price of $219.71 and a GuruFocus Value of $263.09, the stock has a price-to-GF-Value ratio of 0.84. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts. The GF Value is illustrated in the following image:
In conclusion, while the insider's recent sell may raise eyebrows, the overall financial health and valuation of Salesforce Inc remain strong. Investors should keep a close eye on further insider trading activities and other market indicators to make informed investment decisions.
