Salesforce.com (NYSE:CRM) provides cloud computing and social enterprise solutions to various businesses and industries worldwide.
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%|
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|
(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.
Salesforce.com reported the fiscal 2014 full-year, which ended January 31, financial results on February 27 with the following highlights:
|Net loss||$232.2 million|
Salesforce.com's guidance is as follows:
|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|
|Company||CRM||ORCL||SAP||Industry Average (Application Software)|
|Qtrly Rev Growth (yoy):||0.37||0.04||0.02||0.22|
|PEG (5 yr expected):||3.87||1.23||1.68||1.57|
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|
Only salesforce.com has seen intensive insider selling during the last 30 days.
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.
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.