Salesforce Inc. (NYSE:CRM – Get Free Report) traded up 2.3% during trading on Tuesday . The stock traded as high as $172.38 and last traded at $169.4110. 13,010,935 shares changed hands during mid-day trading, a decline of 7% from the average session volume of 13,976,378 shares. The stock had previously closed at $165.65.
Salesforce News Summary
Here are the key news stories impacting Salesforce this week:
- Negative Sentiment: KeyBanc downgraded Salesforce and cut its optimism around the company’s AI roadmap, saying Agentforce may need more time to prove it can drive material growth. Salesforce Stock Downgraded at ‘Possibly Exactly the Wrong Time’
- Negative Sentiment: Commentary from Jim Cramer also weighed on sentiment, with the “cheap can still get cheaper” view highlighting continued caution toward Salesforce after a long stretch of underperformance in enterprise software. Jim Cramer: “Cheap Can Still Get Cheaper.” Why He’s Still Avoiding Salesforce
- Neutral Sentiment: Salesforce also announced new Slackbot capabilities and a U.S. Air Force fleet management win, which support the company’s product story and long-term government/business adoption, but may not be enough to offset the near-term AI and valuation concerns. U.S. Air Force Leverages Missionforce to Modernize Sustainment and Operations for $13.5 Billion Vehicle Fleet
- Neutral Sentiment: Several bullish research notes argue the stock is deeply discounted after its selloff, suggesting some analysts see upside if Salesforce can convert AI investment into faster growth later this year. Salesforce (CRM) Upgraded as AI Bear Case Looks Overdone
Analyst Upgrades and Downgrades
A number of research analysts have issued reports on CRM shares. Scotiabank cut shares of Salesforce from a “sector outperform” rating to a “sector perform” rating in a report on Thursday, June 18th. Monness Crespi & Hardt upgraded Salesforce from a “neutral” rating to a “buy” rating and set a $200.00 price target on the stock in a report on Thursday, June 18th. Barclays raised Salesforce from an “overweight” rating to an “overweight” rating in a research note on Thursday, June 18th. Needham & Company LLC reiterated a “buy” rating on shares of Salesforce in a research report on Tuesday, June 16th. Finally, Jefferies Financial Group raised Salesforce from a “buy” rating to a “buy” rating in a report on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, fourteen have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $254.42.
Salesforce Stock Down 2.4%
The company has a debt-to-equity ratio of 1.15, a current ratio of 0.79 and a quick ratio of 0.79. The firm’s 50-day moving average price is $172.63 and its 200 day moving average price is $195.42. The firm has a market capitalization of $133.21 billion, a price-to-earnings ratio of 18.80, a price-to-earnings-growth ratio of 1.06 and a beta of 1.18.
Salesforce (NYSE:CRM – Get Free Report) last issued its quarterly earnings data on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.13 by $0.75. The firm had revenue of $11.13 billion during the quarter, compared to the consensus estimate of $11.05 billion. Salesforce had a return on equity of 18.72% and a net margin of 18.73%.The company’s quarterly revenue was up 13.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.58 EPS. Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS. Sell-side analysts expect that Salesforce Inc. will post 10.29 EPS for the current year.
Salesforce Announces Dividend
The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th were given a $0.44 dividend. This represents a $1.76 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Thursday, June 11th. Salesforce’s dividend payout ratio is currently 20.37%.
Salesforce declared that its Board of Directors has authorized a stock repurchase plan on Monday, March 16th that permits the company to repurchase $25.00 billion in shares. This repurchase authorization permits the CRM provider to buy up to 14.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s management believes its stock is undervalued.
Institutional Investors Weigh In On Salesforce
Hedge funds have recently modified their holdings of the company. Commonwealth Retirement Investments LLC purchased a new stake in Salesforce in the 4th quarter worth approximately $25,000. Board of the Pension Protection Fund purchased a new stake in shares of Salesforce in the fourth quarter valued at $26,000. Key Capital Management INC acquired a new position in Salesforce in the fourth quarter valued at $26,000. Gilpin Wealth Management LLC purchased a new position in Salesforce during the fourth quarter worth about $26,000. Finally, Legacy Bridge LLC acquired a new stake in Salesforce in the 4th quarter worth about $27,000. 80.43% of the stock is owned by institutional investors and hedge funds.
Salesforce Company Profile
Salesforce, founded in 1999 and headquartered in San Francisco, is a global provider of cloud-based software focused on customer relationship management (CRM) and enterprise applications. The company popularized the software-as-a-service (SaaS) model for CRM and has built a broad portfolio of products designed to help organizations manage sales, service, marketing, commerce and analytics through a unified, cloud-first platform.
Core offerings include Sales Cloud for sales automation, Service Cloud for customer support, Marketing Cloud for digital marketing and engagement, and Commerce Cloud for e-commerce.
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