Shares of Salesforce (NYSE:CRM) stock are rising today on the heels of a rare insider buy.
According to a Form 4 submitted to the U.S. Securities and Exchange Commission (SEC) yesterday after the close, Director Oscar Munoz purchased 2,051 shares at an average per share price of $243.68 on June 21. In total, the transaction was worth $499,806 and brought Munoz’s position to 7,026 shares.
The purchase also marks Munoz’s first-ever insider buy of CRM stock since he joined the board in January 2022.
During the past year, only two insiders have purchased CRM stock, with the other being Director Mason Morfit, who is also the co-CEO of investment firm ValueAct Capital. On June 3, ValueAct purchased 428,000 shares worth a significant $99.79 million. That brought the firm’s stake to 3.91 million shares. Morfit’s purchase was an indirect buy, while Munoz’s was a direct buy.
Salesforce insider buys have amounted to $100.29 million during the past year, although insider sales have been much greater. Insiders have sold a total of $1.41 billion of CRM stock, amounting to a net amount of $1.31 billion worth of shares sold. Most of the sales have been attributed to CEO Marc Benioff, as his sales have totaled $1.02 billion.
CRM Stock: Director Oscar Munoz Buys 2,051 Shares
It’s notable that both of the insider buys during the past year have occurred this month. This follows Salesforce reporting earnings on May 29, which caused CRM stock to plummet lower by as much as 17%. At the same time, CRM has partially recovered from the drop and is now trading about 10% higher than its closing price on May 30.
For the quarter ended April 30, Salesforce’s revenue of $9.13 billion fell short of the analyst estimate for $9.17 billion, marking the first miss since 2006. On the bright side, its adjusted EPS of $2.44 beat the estimate for $2.38.
In addition, the customer relationship management company raised its fiscal-year 2025 adjusted EPS guidance to between $9.86 and $9.94 per share from between $9.68 and $9.76. Analysts were expecting $9.76 per share.
Salesforce also reiterated its revenue guidance of between $37.7 billion and $38 billion compared to the estimate for $38.08 billion.
Salesforce’s decline was likely attributed to a weak quarter, although stocks ultimately factor in future opportunities, not past actions. The company’s guidance shows that Salesforce is still an extremely efficient and profitable company. The recent insider buys and price action reflect that as well. On top of that, 90% of all Fortune 500 companies utilize a Salesforce product.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
