Salesforce CEO Marc Benioff Sells $4.1 Million in Company Stock

Salesforce CEO Marc Benioff sold $4.1 million worth of company stock on April 22, 2024, through a predetermined Rule 10b5-1 trading plan. The transactions involved multiple sales at prices ranging from $269.6091 to $272.3807 per share.

Despite the sales, Benioff still holds a substantial number of shares directly or through the Marc R. Benioff Revocable Trust, and 10,000,000 shares are held indirectly by the Marc Benioff Fund LLC. Investors often monitor insider sales as they can provide insights into executives' perspectives on the company's valuation and prospects, but sales under Rule 10b5-1 plans are scheduled in advance and may not necessarily reflect the insider's immediate view of the company's financial outlook.

The sales were spread across four separate transactions at prices ranging from $269.6091 to $272.3807 per share. Following these transactions, Benioff directly owns 12,812,327 shares and indirectly owns 10,000,000 shares through Marc Benioff Fund LLC.

Why this matters: As the CEO of Salesforce, Marc Benioff's stock sales are closely watched by investors and analysts. While the sales were conducted under a predetermined trading plan, they still provide insight into Benioff's financial strategies and the overall health of the company.

Salesforce has a substantial market capitalization of $265.46 billion and has demonstrated strong revenue growth, with an 11.18% increase over the last twelve months as of Q1 2024. The company is highlighted as a prominent player in the software industry, with a moderate level of debt and strong cash flows that can sufficiently cover its interest payments.

In a filing with the Securities & Exchange Commission, Benioff disclosed selling 15,000 shares of common stock on April 22, 2024, for a total sale amount of $4,110,502. "The transactions were executed at weighted average prices ranging from $270.4356 to $279.4167," according to the filing. Salesforce's stock opened at $273.83 on Tuesday, with a 50-day moving average of $297.00 and a 200-day moving average of $262.79.

Key Takeaways

• Salesforce CEO Marc Benioff sold $4.1M in company stock on April 22, 2024.
• Benioff still holds substantial shares directly and indirectly through trusts.
• Insider sales under Rule 10b5-1 plans may not reflect immediate outlook.
• Salesforce has $265.46B market cap, 11.18% revenue growth, and strong cash flows.
• Benioff sold 15,000 shares at weighted average prices of $270.44 to $279.42.