Salesforce.com: 8 Different Insiders Have Sold Shares During The Last 30 Days

Mar.23.14 | About: Salesforce.com, Inc. (CRM)

Summary

Eight insiders sold salesforce.com stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

Two of these eight insiders decreased their holdings by more than 10%.

Salesforce.com (NYSE:CRM) provides cloud computing and social enterprise solutions to various businesses and industries worldwide.

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Insider selling during the last 30 days

Here is a table of salesforce.com's insider activity during the last 30 days by insider.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Alexandre Dayon President, A&P March 18 36,456 No 0 shares + 94,328 options 27.9%
Maria Martinez EVP Feb 24-Mar 7 82,485 No 25,450 shares 76.4%
Frank van Veenendaal Vice Chairman Feb 24-Mar 3 5,980 Yes 36,059 shares + 91,000 options 4.5%
Craig Conway Director Mar 3 1,600 Yes 15,856 shares 9.2%
Parker Harris Co-Founder Feb 24-28 1,400 No 2,082,986 shares 0.1%
George Hu COO Feb 24-28 1,335 No 36,824 shares 3.5%
Burke Norton EVP Feb 24-28 4,736 No 70,782 shares 6.3%
Graham Smith CFO Feb 21-28 24,832 Yes 102,993 shares + 202,400 options 7.5%
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There have been 158,824 shares sold by insiders during the last 30 days. Frank van Veenendaal, Craig Conway, and Graham Smith sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of salesforce.com's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
March 2014 116,328 0
February 2014 44,096 0
January 2014 51,055 0
December 2013 111,055 0
November 2013 170,585 0
October 2013 432,505 0
September 2013 785,061 0
August 2013 77,122 0
July 2013 7,400 0
June 2013 16,200 0
May 2013 94,329 0
April 2013 55,205 0
March 2013 58,468 0
February 2013 36,205 0
January 2013 60,895 0
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(Salesforce.com had a four-for-one split in April 2013)

There have been 2,116,509 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Salesforce.com reported the fiscal 2014 full-year, which ended January 31, financial results on February 27 with the following highlights:

Revenue $4.1 billion
Net loss $232.2 million
Cash $838.8 million
Debt $1.9 billion
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Outlook

Salesforce.com's guidance is as follows:

Q1/FY2015 Full-Year FY2015
Revenue $1.205-$1.210 billion $5.25-$5.30 billion
GAAP loss $0.23-$0.22 per share $0.53-$0.51 per share
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Competition

Salesforce.com's competitors include Oracle Corporation (NYSE:ORCL) and SAP AG (NYSE:SAP). Here is a table comparing these companies.

Company CRM ORCL SAP Industry Average (Application Software)
Market Cap: 34.80B 168.60B 92.39B 1.30B
Employees: 13,300 122,710 66,572 561.00
Qtrly Rev Growth (yoy): 0.37 0.04 0.02 0.22
Revenue: 4.07B 37.90B 21.77B 166.62M
Gross Margin: 0.76 0.82 0.70 0.70
EBITDA: -60.55M 16.42B 7.12B 45.15M
Operating Margin: -0.07 0.39 0.27 0.15
Net Income: -232.18M 11.12B 4.31B N/A
EPS: -0.39 2.39 3.61 0.82
P/E: N/A 15.68 21.42 39.62
PEG (5 yr expected): 3.87 1.23 1.68 1.57
P/S: 8.86 4.55 4.22 7.18
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Salesforce.com has the highest P/S ratio among these three companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
ORCL 0 3,257,500
SAP N/A N/A
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Only salesforce.com has seen intensive insider selling during the last 30 days.

Conclusion

There have been eight different insiders selling salesforce.com, and there have not been any insiders buying salesforce.com during the last 30 days. Two of these eight insiders decreased their holdings by more than 10%. Salesforce.com has an insider ownership of 0.30%.

Salesforce.com has a $50 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $50 price target. I would place a stop loss at $67, which is the all-time high. The four main reasons for the proposed short entry are a bearish Point & Figure chart, relatively high P/S ratio, negative earnings, and the intensive insider-selling activity.

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Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in CRM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.