Oscar Munoz, a director at Salesforce (CRM), recently bought 2,051 shares. The buy increased his position by 41%, and came to a total price of $499,806.
That’s the second insider buy of the month, following a $99.8 million share buy from a major holder. Those are the only two insider buys over the past two years. Otherwise, company executives have largely been sellers of Salesforce stock, with about half of those sales occurring following the exercise of stock options.
Overall, Salesforce insiders own 2.6% of shares.
The sales and customer service software company is up about 14% over the past year, lagging the overall market’s return.
The stock is off about 25% from its 52-week high, on concerns over slowing consumer spending and the rise of AI tools.
Revenues are up 11% over the same time, and earnings have soared 670%.
At current prices, Salesforce trades at about 24 times overall earnings.
Action to take: After its big drop lower, the share price has started to stabilize in recent weeks, and could be setting up for the next move higher.
Investors may want to start a position in shares at current prices and use any drop to add to that position. Salesforce also pays a 0.6% dividend at current prices.
For traders, the possibility of a rally higher in the coming months could play well to the September $260 calls. Last trading for about $7.60, the options could see mid-double-digit returns on the move higher in the coming months.
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.