Salesforce (NYSE:CRM) Trading 1% Higher – Here’s Why

Salesforce, Inc. (NYSE:CRM)’s stock price rose 1% during mid-day trading on Thursday . The company traded as high as $268.87 and last traded at $268.67. Approximately 1,876,824 shares were traded during mid-day trading, a decline of 71% from the average daily volume of 6,561,332 shares. The stock had previously closed at $265.91.

Wall Street Analyst Weigh In

CRM has been the topic of a number of analyst reports. Barclays cut their price target on Salesforce from $425.00 to $347.00 and set an “overweight” rating on the stock in a report on Thursday, May 29th. Westpark Capital restated a “buy” rating and set a $320.00 target price on shares of Salesforce in a research note on Wednesday, May 28th. Oppenheimer restated an “outperform” rating and set a $370.00 target price on shares of Salesforce in a research note on Tuesday. BMO Capital Markets dropped their target price on Salesforce from $367.00 to $350.00 and set an “outperform” rating on the stock in a research note on Tuesday, May 27th. Finally, Stephens dropped their target price on Salesforce from $311.00 to $309.00 and set an “equal weight” rating on the stock in a research note on Friday, May 30th. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating, twenty-seven have issued a buy rating and four have assigned a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $346.34.

Salesforce Stock Down 3.2%

The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 0.14. The stock has a market cap of $246.89 billion, a PE ratio of 42.48, a P/E/G ratio of 2.58 and a beta of 1.38. The business has a 50 day moving average price of $268.09 and a 200 day moving average price of $300.13.

Salesforce (NYSE:CRM) last issued its earnings results on Wednesday, May 28th. The CRM provider reported $2.58 EPS for the quarter, topping analysts’ consensus estimates of $2.55 by $0.03. Salesforce had a return on equity of 12.34% and a net margin of 15.96%. The firm had revenue of $9.83 billion for the quarter, compared to the consensus estimate of $9.74 billion. During the same quarter in the prior year, the business earned $2.44 earnings per share. The company’s revenue was up 7.6% compared to the same quarter last year. Equities research analysts expect that Salesforce, Inc. will post 7.46 EPS for the current fiscal year.

Salesforce Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 10th. Investors of record on Wednesday, June 18th will be issued a $0.416 dividend. The ex-dividend date is Wednesday, June 18th. This represents a $1.66 dividend on an annualized basis and a yield of 0.64%. Salesforce’s payout ratio is 25.98%.

Insider Buying and Selling

In related news, insider Miguel Milano sold 705 shares of the company’s stock in a transaction dated Friday, May 23rd. The stock was sold at an average price of $279.44, for a total value of $197,005.20. Following the completion of the transaction, the insider now owns 9,323 shares of the company’s stock, valued at approximately $2,605,219.12. This represents a 7.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Parker Harris sold 3,273 shares of the company’s stock in a transaction dated Monday, March 24th. The stock was sold at an average price of $284.58, for a total value of $931,430.34. Following the completion of the transaction, the insider now directly owns 125,146 shares of the company’s stock, valued at $35,614,048.68. The trade was a 2.55% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 40,332 shares of company stock valued at $11,024,802. 3.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Salesforce

A number of large investors have recently bought and sold shares of CRM. Bernard Wealth Management Corp. acquired a new position in shares of Salesforce during the fourth quarter valued at approximately $25,000. Accredited Wealth Management LLC acquired a new position in shares of Salesforce during the fourth quarter valued at approximately $27,000. Capital A Wealth Management LLC raised its holdings in shares of Salesforce by 450.0% during the first quarter. Capital A Wealth Management LLC now owns 110 shares of the CRM provider’s stock valued at $30,000 after acquiring an additional 90 shares during the last quarter. CBIZ Investment Advisory Services LLC raised its holdings in shares of Salesforce by 314.8% during the first quarter. CBIZ Investment Advisory Services LLC now owns 112 shares of the CRM provider’s stock valued at $30,000 after acquiring an additional 85 shares during the last quarter. Finally, Asset Planning Inc acquired a new position in shares of Salesforce during the fourth quarter valued at approximately $31,000. Institutional investors and hedge funds own 80.43% of the company’s stock.

About Salesforce

Salesforce, Inc provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company's service includes sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and artificial intelligence, and deliver quotes, contracts, and invoices; and service that enables companies to deliver trusted and highly personalized customer support at scale.