Oscar Munoz, a director at Salesforce (CRM), recently bought 3,882 shares. The buy increased his stake by 49%, and came to a total cost of $998,773.
This is the second insider buy at Salesforce this year, following another director buy of 1,695 shares in February, at a cost of $499,355. Otherwise, company insiders have been regular sellers of shares, largely following the exercise of stock options. Notable sales include the company CFO and a company Co-Founder.
Overall, Salesforce insiders own 2.6% of shares.
The customer relations software giant is now down 20% over the past year, far in excess of the flat returns in the past 12 months on the S&P 500 index.
Revenues are up 8%, and earnings growth is up 18%, but investors have been wary about the impact of AI, even as Salesforce has unveiled several AI tools for its customers to use. For now, with revenues and earnings on the rise, it’s clear that AI is benefitting the company, which may not be reflected in shares.
Action to take: With the recent market selloff, Salesforce shares are back into a heavily traded zone, and should find support here. Investors can potentially see some upside, particularly once the market sentiment shifts away from being so bearish.
At current prices, Salesforce pays a 0.7% dividend.
For traders, the July $290 calls, last trading for about $6.80, could see mid-to-high double-digit returns on a bounce higher in shares over the coming weeks.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
