Salesforce Shares Slide to 52-Week Low Amid CEO's 2.25M Share Sale as Institutional Buyers Boost Holdings Stock Ranks 22nd in 3.05B Trading Volume

Generated by AI AgentAinvest Market Brief
Tuesday, Aug 12, 2025 10:43 pm ET1min read
CRM--
Aime RobotAime Summary

- Salesforce shares dropped 0.44% to $231.66 on August 12, nearing 52-week lows amid CEO Marc Benioff's $532K share sale under a Rule 10b5-1 plan.

- Benioff's structured divestment of 2,250 shares and option exercises reduced his holdings to 11.9M, while institutional investors boosted stakes by 66% in Q1.

- Analysts showed mixed outlooks, with Citigroup/BMO lowering targets to $295-$335 versus $430 from JMP/Citizens, as AI initiative uncertainties weigh on the $221B market cap.

- A high-volume trading strategy (top 500 stocks) generated $2,940 profit (2021-2025) with 0.67 Sharpe ratio, reflecting moderate risk-adjusted returns despite $1,960 drawdowns.

Salesforce (CRM) fell 0.44% on August 12, 2025, with a trading volume of $3.05 billion, ranking 22nd on the day. The stock traded near its 52-week low of $226.48, currently at $231.66. CEO Marc Benioff executed a pre-arranged Rule 10b5-1 plan to sell 2,250 shares totaling $532,017 on August 11, reducing his direct holdings to 11.9 million shares. This transaction, alongside recent sales of 2,250 shares over multiple days at prices ranging from $232 to $269, reflects structured divestment. Benioff also exercised options to acquire 2,250 shares at $161.50, totaling $363,375.

Analyst ratings remain mixed. CitigroupC-- and BMOBMO-- Capital lowered price targets to $295 and $335, respectively, while JMP Securities and Citizens maintained $430 targets. Institutional investors increased stakes in Q1, with firms like Notis McConarty and Alecta Tjanstepension boosting holdings by 66% to 121.9%. The stock’s 221.22 billion market cap faces pressure from near-term AI initiative uncertainties, though long-term optimism persists among some analysts. Salesforce’s recent dividend cut to $0.416 per share and a payout ratio of 25.98% also influence investor sentiment.

The strategy of buying the top 500 stocks by daily trading volume and holding for one day yielded a total profit of $2,940 from December 2021 to August 2025. The approach faced a maximum drawdown of $1,960, with an average daily return of 0.24%. The Sharpe ratio of 0.67 indicates moderate risk-adjusted returns, peaking at 1.2 over the four-year period.

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