Over the past six months insiders have sold roughly 900,000 shares and bought a grand total of 200. Large portions of these insider transactions have been sales by management. Perhaps management is not as confident in the future of CRM as it would have us believe.
900,000 shares only represents 0.5% of the shares held by insiders, but the trend is still clearly towards selling rather than buying. Additionally, the amount of options exercised doubled from 2012 to 2013, with 5 million shares being exercised in 2013. Insiders don’t appear to see much more upside to the stock at its current valuation.
Avoid These Funds
Investors should avoid the following ETFs and mutual funds due to their 6+% allocation to CRM and Dangerous-or-worse rating.
- iShares iShares North American Tech-Software ETF (IGV): 8.4% allocation to CRM and a Dangerous rating.
- Berkshire Funds: Berkshire Focus Fund (BFOCX): 6.8%% allocation to CRM and a Dangerous rating.
- Touchstone Funds Group Trust: Touchstone Sands Capital Select Growth Fund (CFSIX): 6.2% allocation to CRM and a Dangerous rating.
Sam McBride contributed to this article.
Disclosure: David Trainer and Sam McBride receive no compensation to write about any specific stock, sector, or theme.
This article is brought to you courtesy of David Trainer from New Constructs.