5 Overvalued Stocks Insiders are Dumping Now

2. Salesforce Inc (NYSE:CRM)

Number of Hedge Fund Investors: 131

Salesforce Inc (NYSE:CRM) President and COO Brian Millham on April 1 sold 24,453 shares of the CRM software company at $302.08 per share. Salesforce CEO Marc Benioff also sold 15,000 shares of Salesforce Inc (NYSE:CRM) at $301.72 on the same day. Benioff also sold 15,000 CRM shares on March 28 at $301.01 per share. Benioff kept selling the stock in droves last month. Parker Harris, Salesforce Inc (NYSE:CRM) co-founder and Slack’s CTO, also sold 4,200 shares of Salesforce Inc (NYSE:CRM) at $306.50 per share on March 26. Since then the stock is down 0.60%.

Polen Focus Growth Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its fourth quarter 2023 investor letter:

“In the fourth quarter, the top relative and absolute contributors to the Portfolio’s performance were Netflix, ServiceNow, and Salesforce, Inc. (NYSE:CRM).

Salesforce has continued to grow its revenues at what we see as a healthy rate despite market concerns about the impact of the weaker macroeconomy on its business and penetration rates in its core CRM offering. Even its most mature and largest offerings, Sales Cloud and Service Cloud, are still growing revenue at double-digit rates. In addition, management realized that their cost structure, especially in salespeople, had gotten too bloated. Over the past year and a half, the company has run a much more streamlined expense structure that has led to strong operating margin expansion and earnings growth. Importantly, we do not feel Salesforce has cut into its innovation or sales muscle through these cost cuts but has eliminated unnecessary excess fat from the organization.”