Amy Weaver, President and Chief Financial Officer of Salesforce Inc (CRM, Financial), sold 24,281 shares of the company's stock on June 16, 2023. This insider sale comes amidst a year of significant insider selling activity for the company. In this article, we will take a closer look at Amy Weaver's role at Salesforce Inc, the company's business, and analyze the relationship between insider transactions and stock price.
Who is Amy Weaver of Salesforce Inc?
Amy Weaver is the President and Chief Financial Officer of Salesforce Inc, a leading provider of enterprise cloud computing solutions. She joined the company in 2017 as Executive Vice President and General Counsel and was promoted to her current role in 2021. Prior to joining Salesforce, Weaver held various leadership positions in legal and corporate affairs at companies such as Univar Solutions, Expedia, and Cravath, Swaine & Moore LLP. As the President and CFO, Weaver plays a crucial role in shaping the company's financial strategy and overseeing its global operations.
Salesforce Inc's Business Description
Salesforce Inc is a global leader in customer relationship management (CRM, Financial) software, providing a comprehensive suite of cloud-based solutions that help businesses connect with their customers, partners, and employees in new and innovative ways. The company's flagship product, Salesforce Customer 360, is an integrated CRM platform that enables businesses to manage sales, service, marketing, commerce, and more, all from a single, unified platform. With a focus on innovation and customer success, Salesforce has become an essential tool for businesses of all sizes and industries looking to drive growth and improve customer experiences.
Analysis of Insider Buy/Sell and the Relationship with Stock Price
Over the past year, Amy Weaver has sold a total of 32,097 shares and purchased 0 shares. This indicates a trend of insider selling for Weaver. The overall insider transaction history for Salesforce Inc shows that there have been 0 insider buys and 229 insider sells over the past year.
When analyzing the relationship between insider transactions and stock price, it is important to consider the context of these transactions. In the case of Salesforce Inc, the stock has experienced significant growth over the past few years, which could be a contributing factor to the high number of insider sells. However, it is also worth noting that the stock's price has been relatively stable in recent months, suggesting that insiders may be taking advantage of this stability to sell their shares.
Valuation
Shares of Salesforce Inc were trading for $212.35 apiece on the day of Amy Weaver’s recent sale. This gives the stock a market cap of $211.33 billion.
The price-earnings ratio is 570.97, which is higher than the industry median of 28.04 and higher than the company’s historical median price-earnings ratio.
With a price of $212.35 and a GuruFocus Value of $297.54, Salesforce Inc has a price-to-GF-Value ratio of 0.71. This means the stock is Modestly Undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company’s past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, while there has been a trend of insider selling at Salesforce Inc over the past year, it is important to consider the context of these transactions and the company's overall performance. With a modestly undervalued stock price and a strong business model, Salesforce Inc remains an attractive investment opportunity for those looking to gain exposure to the growing CRM software market.
