SAN FRANCISCO—Brian Millham, President and Chief Operating Officer of Salesforce, Inc. (NYSE:CRM), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Millham sold 14,808 shares of Salesforce common stock on November 22, 2024, at a price of $338.95 per share, totaling approximately $5.02 million.
The transactions were part of a pre-established trading plan under Rule 10b5-1, which allows company insiders to set up a trading plan for selling stocks they own. This plan was adopted by Millham on December 22, 2023.
In addition to the sale, Millham also executed multiple options to acquire shares, converting a total of 14,808 shares of Salesforce common stock. These acquisitions were executed at varying prices ranging from $186.51 to $240.95.
Following these transactions, Millham no longer holds any shares directly. These moves come as Salesforce continues to navigate its position in the competitive software industry, with its stock performance closely watched by investors.
Salesforce, headquartered in San Francisco, is a leading provider of customer relationship management software and applications focused on sales and customer service.
In other recent news, Salesforce reported strong second-quarter earnings, with earnings per share of $2.56, an 8% increase in sales, and a 9% rise in subscription and support revenues. The company also acquired Zoomin and Own Company for $1.9 billion in cash and announced plans to hire 1,000 new employees to support Agentforce sales. In terms of analyst adjustments, Deutsche Bank (ETR:DBKGn) maintained a Buy rating on Salesforce, citing Agentforce as a key driver for renewed interest. The firm increased its price target to $365 from the previous $325. Similarly, Goldman Sachs maintained a Buy rating, raising the company's price target from $325 to $360, expressing confidence in the company's AI strategy. However, TD Cowen maintained a Hold rating, expressing a cautious outlook amid high expectations, despite raising their price target for the company's shares to $340. In other developments, Salesforce unveiled a suite of AI agent testing tools, including the Agentforce Testing Center, Sandboxes for Agentforce and Data Cloud, and monitoring tools for Agentforce. These are recent developments in Salesforce's ongoing efforts in the industry.
InvestingPro Insights
As Salesforce's President and COO Brian Millham executes a significant stock sale, it's worth examining the company's current financial position and market performance. According to InvestingPro data, Salesforce boasts a substantial market capitalization of $327.49 billion, reflecting its dominant position in the software industry.
The company's financial health appears robust, with revenue reaching $36.47 billion in the last twelve months as of Q1 2023, marking a 10.26% growth. Notably, Salesforce maintains an impressive gross profit margin of 76.35%, underscoring its operational efficiency and pricing power in the market.
InvestingPro Tips highlight Salesforce's strong market performance, with the stock delivering a 53.47% return over the past year and trading near its 52-week high. This aligns with Millham's decision to sell shares, potentially capitalizing on the stock's recent strength.
Moreover, an InvestingPro Tip indicates that Salesforce has a perfect Piotroski Score of 9, suggesting solid financial stability and operational efficiency. This score may provide some reassurance to investors in light of the insider sale.
It's worth noting that while Salesforce trades at a relatively high P/E ratio of 58.67, another InvestingPro Tip points out that it's trading at a low P/E ratio relative to near-term earnings growth. This could indicate potential value for long-term investors despite the current valuation.
For readers interested in a deeper analysis, InvestingPro offers 13 additional tips on Salesforce, providing a more comprehensive view of the company's financial health and market position.
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