On October 9, 2023, Srinivas Tallapragada, President and Chief Engineering Officer of Salesforce Inc (CRM, Financial), sold 10,000 shares of the company. This move is part of a larger trend for the insider, who over the past year has sold a total of 217,537 shares and purchased none.
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. With a market cap of $201.29 billion, Salesforce Inc is a significant player in the tech industry.
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 261 insider sells and no insider buys for Salesforce Inc. This trend suggests a potential lack of confidence from insiders about the company's future performance.
Despite the insider's sell, Salesforce Inc's stock was trading at $205.59 per share on the day of the transaction, giving the company a market cap of $201.29 billion. The price-earnings ratio is 130.11, higher than the industry median of 26.53 but lower than the company’s historical median price-earnings ratio.
According to GuruFocus Value, Salesforce Inc's stock is modestly undervalued. With a price of $205.59 and a GuruFocus Value of $265.65, the stock has a price-to-GF-Value ratio of 0.77. 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.
In conclusion, while the insider's sell may raise some concerns, the valuation metrics suggest that Salesforce Inc's stock is modestly undervalued. Investors should keep a close eye on the company's performance and any future insider trading activity.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
