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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.

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Alexandre DayonPresident, A&PMarch 1836,456No0 shares + 94,328 options27.9%
Maria MartinezEVPFeb 24-Mar 782,485No25,450 shares76.4%
Frank van VeenendaalVice ChairmanFeb 24-Mar 35,980Yes36,059 shares + 91,000 options4.5%
Craig ConwayDirectorMar 31,600Yes15,856 shares9.2%
Parker HarrisCo-FounderFeb 24-281,400No2,082,986 shares0.1%
George HuCOOFeb 24-281,335No36,824 shares3.5%
Burke NortonEVPFeb 24-284,736No70,782 shares6.3%
Graham SmithCFOFeb 21-2824,832Yes102,993 shares + 202,400 options7.5%

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.

MonthInsider selling / sharesInsider buying / shares
March 2014116,3280
February 201444,0960
January 201451,0550
December 2013111,0550
November 2013170,5850
October 2013432,5050
September 2013785,0610
August 201377,1220
July 20137,4000
June 201316,2000
May 201394,3290
April 201355,2050
March 201358,4680
February 201336,2050
January 201360,8950

(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

Outlook

Salesforce.com's guidance is as follows:

Q1/FY2015Full-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

Competition

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

CompanyCRMORCLSAPIndustry Average (Application Software)
Market Cap:34.80B168.60B92.39B1.30B
Employees:13,300122,71066,572561.00
Qtrly Rev Growth (yoy):0.370.040.020.22
Revenue:4.07B37.90B21.77B166.62M
Gross Margin:0.760.820.700.70
EBITDA:-60.55M16.42B7.12B45.15M
Operating Margin:-0.070.390.270.15
Net Income:-232.18M11.12B4.31BN/A
EPS:-0.392.393.610.82
P/E:N/A15.6821.4239.62
PEG (5 yr expected):3.871.231.681.57
P/S:8.864.554.227.18

Salesforce.com has the highest P/S ratio among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
ORCL03,257,500
SAPN/AN/A

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.

(click to enlarge)

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