On October 30, 2023, Srinivas Tallapragada, the 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 247,538 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. The company's flagship product is its customer relationship management (CRM, Financial) service, which allows businesses to manage their interactions with customers and potential customers.
The insider's recent sell has raised some eyebrows in the investment community. Over the past year, there have been no insider buys at Salesforce Inc, while there have been 269 insider sells. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of Salesforce Inc were trading at $199 each, giving the company a market cap of $195.41 billion. The price-earnings ratio was 126.31, higher than the industry median of 25.38 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. The stock's price-to-GF-Value ratio is 0.74, with a GF Value of $267.32. This suggests that the stock is currently trading below its intrinsic value.
The insider's decision to sell shares could be based on a variety of factors. It's important to note that insider selling does not necessarily indicate a negative outlook for the company. Insiders may sell shares for personal reasons or to diversify their investment portfolio. However, the lack of insider buying at Salesforce Inc over the past year could be a cause for concern for some investors.
As always, investors should consider a variety of factors when making investment decisions, including the company's financial health, market conditions, and their own investment goals and risk tolerance. Insider transactions are just one piece of the puzzle.
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.
