We recently published a list of Should You Buy the Dip and Follow Insiders into These 10 Stocks?. In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against other stocks insiders were piling into recently.
After a turbulent week, stocks began recovering on Monday, with all three major indexes posting gains. The broader market index rose 0.64%, blue-chip stocks gained 0.85%, and the NASDAQ Composite, still in correction territory, closed 0.31% higher.
Early Tuesday, stocks began to decline again as investors focused on the Federal Reserve’s two-day policy meeting starting today. The key announcement for traders will come Wednesday when the Fed announces its interest rate decision, followed by a press conference with Fed Chair Jerome Powell. Since September, the Fed has cut interest rates three times and still, the broader market entered a correction.
Despite uncertainty from President Trump’s shifting tariff policies and geopolitical strategies, some analysts remain optimistic about AI’s future.
“We retain our view that there is more to go in stocks, and we keep our conviction in the long-term opportunities in stocks linked to both the artificial intelligence and power and resources transformational innovations,” UBS chief investment office said in a note Monday, according to CNBC.
Amid turbulence and uncertainty on Wall Street, looking at recent insider trades can provide valuable insights, as executives often have a deeper understanding of their companies. For example, when a CEO or CFO buys company stock, it may indicate strong confidence in the business’s future.
However, insider selling doesn’t always signal a lack of confidence. It could be due to personal financial needs or a desire to diversify investments. These sales are often made through pre-arranged plans, like 10b5-1 plans, to avoid any appearance of improper timing.
While insider activity can be informative, it’s important to consider it alongside the company’s financial health, market trends, and industry developments.
Our Methodology
We used Insider Monkey’s insider trading stock screener to analyze recent trading activities in several popular stocks. For each stock, we noted the number of insiders who recently acquired shares and the company’s market capitalization.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A customer service team in an office setting using the company’s Customer 360 platform to communicate with customers.
Salesforce, Inc. (NYSE:CRM)
Number of Insiders Buying: 1
Market Capitalization: $269.80 billion
Sixth on this list of 10 recent insider purchases is a designer and developer of cloud-based enterprise software for customer relationships, Salesforce. The San Francisco-based company offers applications focused on customer service and support, market automation, analytics, sales force automation, and e-commerce, while also providing industry-specific solutions. It is also one of the 10 best software stocks to buy according to billionaires.
Salesforce Agentforce is a platform that enables organizations to build, customize, and deploy autonomous AI agents for various business functions, including service, sales, marketing, and commerce. Some experts are bullish on the stock mostly because of Agentforce and recent positive projections on the future adoption of AI technologies.
Among the recent company’s development Singapore Airlines’s incorporation of Agentforce, Einstein in Service Cloud, and Data Cloud into its customer case management system, enabling it to deliver more consistent and personalized service to its customers.
“The rise of digital labor, powered by autonomous AI agents, is not just reimagining the customer experience — it’s transforming business,” stated Marc Benioff, chair and CEO of Salesforce. “We’re thrilled to partner with Singapore Airlines, a trailblazer in this AI revolution, to elevate their already outstanding customer service to unprecedented heights, augment their employees and collaborate on groundbreaking AI solutions for the airline industry. With our deeply unified digital labor platform, we’re bringing humans together with trusted, autonomous AI agents, unlocking new levels of productivity, innovation and growth.”
For the third quarter of 2024, the company reported revenue of $9.44 billion, up 8% year-over-year. In December, the company’s board of directors declared a quarterly cash dividend of $0.40 per share.
Recently, Mad Money host, Jim Cramer, commented on the stock saying “Salesforce….is a huuuuuuge buy.”
On February 28, one insider bought $499,355.48 worth of Salesforce shares at a price of $294.61 per share. Year-to-date, the stock dropped 16.03% and is now trading at $280.75. Over the past 12 months, Salesforce shares lost 6.58%.
The consensus rating on Salesforce stock from 42 analysts is “Moderate Buy,” according to MarketBeat. The average price target of $364.14 suggests a 29.67% upside.
Overall, CRM ranks 6th on our list of stocks insiders were piling into recently. While we acknowledge the potential of CRM, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.