Salesforce, Inc. (NYSE:CRM) Co-Founder and Chief Technology Officer of Slack, Parker Harris, has recently sold a significant portion of his company stock, totaling over $1 million. The transactions, which took place on July 9, 2024, were reported in a recent SEC filing.
Harris sold a total of 4,200 shares, garnering a total of $495,768 at a price of $118.04 per share. Additionally, the executive offloaded 4,200 shares through sales, which accumulated to a total of $1,061,539. The sales were conducted at varying prices, ranging from $251.7869 to $256.2936 per share.
The sales were executed automatically according to a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information. This provides a defense against potential accusations of insider trading.
Following the sales, Harris still holds a substantial number of Salesforce shares directly and indirectly through trusts and LLCs managed by him and his spouse.
Investors and followers of Salesforce's stock will likely keep an eye on insider transactions such as these for insights into executive sentiment and potential future stock performance. Harris's recent sale represents a notable change in his investment in the company, though the reasons for the sale have not been disclosed.
Salesforce, headquartered in San Francisco, California, is a leading company in the cloud computing and social enterprise software space, providing its customers with a comprehensive suite of services to enhance their business operations.
In other recent news, Salesforce's shareholders have voted against the proposed executive pay plan, including CEO Marc Benioff's compensation, which was set at $39.6 million for the 2024 financial year. In contrast, shareholders approved the expansion of the company's 2013 Equity Incentive Plan, adding 36 million shares reserved for issuance. They also ratified an amendment to Salesforce's Restated Certificate of Incorporation, allowing for the exculpation of certain officers in accordance with Delaware law.
Meanwhile, Salesforce reported an 11% year-over-year growth in its fiscal 2025 first-quarter earnings, with revenue reaching $9.13 billion. The company's subscription and support segment saw a 12% rise, contributing significantly to the overall performance. Despite economic challenges, the company maintained its full-year revenue guidance at $37.7 billion to $38 billion.
In the realm of analyst notes, BMO (TSX:BMO) Capital Markets, Goldman Sachs (NYSE:GS), and Oppenheimer maintained their bullish stance on Salesforce. BMO Capital kept its Outperform rating with a price target of $265.00, while Goldman Sachs reiterated a Buy rating with a price target of $315. Oppenheimer maintained an Outperform rating with a steady price target of $280.00.
Salesforce has also been focusing on generational artificial intelligence innovations, introducing a new large language model benchmarking tool tailored for customer relationship management business cases. This commitment to AI underscores Salesforce's strategy to remain model-agnostic when it comes to Gen-AI models.
InvestingPro Insights
Amidst the news of Salesforce Co-Founder and CTO of Slack, Parker Harris, selling a significant portion of his company stock, Salesforce's market performance and financial health remain a key interest for investors. According to InvestingPro, Salesforce (NYSE:CRM) has demonstrated robust financial metrics and industry standing that are worth noting.
The company boasts an impressive gross profit margin, which stands at 76.0% for the last twelve months as of Q1 2025. This figure reflects Salesforce's ability to maintain a strong profitability ratio in the competitive software industry landscape. Additionally, Salesforce's market capitalization is valued at 244.46 billion USD, indicating the company's substantial size and influence in the market.
Despite the recent insider selling, it's also important to consider that Salesforce has a perfect Piotroski Score of 9, suggesting that the company is in top financial health. Moreover, Salesforce operates with a moderate level of debt, which is a reassuring sign for investors concerned about the company's financial stability.
For those looking to delve deeper into Salesforce's financials and stock performance, InvestingPro provides further insights and tips. There are 11 additional InvestingPro Tips available, which could help investors make a well-informed decision. Interested readers can find these tips at: https://www.investing.com/pro/CRM. To enhance their experience, users can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
As Salesforce continues to be a prominent player in the software industry, the movements of its executives and their stock transactions will remain a focal point for those monitoring the company's trajectory.
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