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Salesforce CFO Sold Shares Worth $3.7M: How Will It Impact CRM?

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Salesforce Inc. (NYSE: CRM) reported its quarterly results on Wednesday, 30 August and it has turned out to be a positive quarter. However, on the very next day, Amy E. Weaver, President and CFO, sold 16,275 shares of the company worth $3.& Million.

Consequently, CFO Amy E. Weaver is now left with direct control of a total of 35,611 shares of the company. The company reported a good quarter where revenue reflected an 11% YOY jump. Additionally, the company raised its revenue outlook to $34.8 Billion, beating analyst’s estimates of $34.66 Billion.

 The daily price chart shows that CRM Stock has been following an uptrend, taking multiple supports from the key moving average 50 EMA. Recently, the stock price experienced selling pressure after forming a swing high, and the price dropped below the 50 EMA ahead of the quarterly results. However, the buyers accumulated at the lower levels and this caused the price to surge higher.

The analysts offering 1-year price forecasts for Salesforce Inc. have a maximum estimate of  $340 and a minimum estimate of $159. The company engages in the design and development of cloud-based enterprise software. It holds a market cap of $215.54 Billion.  

    Source: barchart.com

CRM stock option-chain analysis shows that the current implied volatility in the market is 23.50% with a decrease of 1.02% in the last trading session. The nearest support of $210 has an OI of 750 open contracts on the CALL side and  2846 open contracts on the PUT side. indicating that the buyers are dominating at the support level, which suggests that the price might take a pullback up to this level and surge again. 

Salesforce Stock Price Showed Bullishness At The Support Level

Source: Salesforce 1D. NYSE By TradingView

The short-term outlook of the analysts indicates that the price is in a short-term as well as long-term bullish trend. However, the price opened with a gap-down and showed selling pressure in the last 2 sessions.

It is possible that the price may take a pullback to fill the gap and may surge again to resume its ongoing trend.

The price has a very strong support at $200, the breakdown of which may turn the stock bearish in the short-term. 

RSI And MACD Indicators Showing Bullishness Over The Daily Chart

Salesforce CFO Sold Shares Worth $3.7M: How Will It Impact CRM?
Source: Salesforce 1D. NYSE By TradingView

The technical indicators opinion rating including the RSI and MACD indicators  point to a 72% buy rating, with an average short-term outlook on maintaining the current trend. The long-term indicators are optimistic and fully support the continuation of the ongoing trend.

Conclusion

Salesforce Inc. (CRM Stock) reported a positive quarter with 11% revenue growth and raised its outlook. However, its CFO sold 16,275 shares worth $3.6 million the next day. CRM stock has been in an uptrend supported by the 50-EMA but faced selling pressure ahead of the results. The analysts have a bullish forecast for the stock, but the price may pull back to fill the gap. The $200 level is a strong support level that may turn the trend bearish if it is shattered.

Technical Levels

  • Support levels: $204.04 and $192.45.
  • Resistance levels: $234.2 and $251.45.
Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss. 

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