Salesforce (NYSE:CRM – Get Free Report) had its target price reduced by stock analysts at TD Cowen from $250.00 to $240.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has a “buy” rating on the CRM provider’s stock. TD Cowen’s target price would suggest a potential upside of 33.43% from the company’s current price.
A number of other analysts have also recently issued reports on the company. Citigroup reissued a “market outperform” rating on shares of Salesforce in a research report on Thursday. Bank of America began coverage on Salesforce in a research report on Monday, May 18th. They issued an “underperform” rating and a $160.00 price target for the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $400.00 price target on shares of Salesforce in a research report on Thursday, February 26th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $281.00 price target on shares of Salesforce in a research report on Thursday, February 26th. Finally, Weiss Ratings lowered Salesforce from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, May 20th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, eight have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, Salesforce presently has a consensus rating of “Moderate Buy” and an average target price of $262.32.
Check Out Our Latest Stock Report on CRM
Salesforce Price Performance
Salesforce (NYSE:CRM – Get Free Report) last issued its earnings results on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.13 by $0.75. The business had revenue of $11.13 billion for the quarter, compared to analysts’ expectations of $11.05 billion. Salesforce had a return on equity of 15.38% and a net margin of 17.96%.The company’s quarterly revenue was up 13.3% on a year-over-year basis. 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. On average, equities analysts anticipate that Salesforce will post 9.71 earnings per share for the current year.
Salesforce declared that its board has approved a share repurchase program on Monday, March 16th that allows the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization allows the CRM provider to purchase up to 14.1% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.
Insider Activity
In other news, Director David Blair Kirk purchased 2,570 shares of the stock in a transaction that occurred on Wednesday, March 18th. The shares were purchased at an average cost of $194.62 per share, for a total transaction of $500,173.40. Following the completion of the purchase, the director directly owned 13,689 shares of the company’s stock, valued at approximately $2,664,153.18. The trade was a 23.11% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Laura Alber purchased 2,571 shares of the stock in a transaction that occurred on Thursday, March 19th. The shares were purchased at an average price of $194.58 per share, for a total transaction of $500,265.18. Following the completion of the purchase, the director directly owned 9,530 shares of the company’s stock, valued at approximately $1,854,347.40. This trade represents a 36.94% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders own 3.50% of the company’s stock.
Institutional Investors Weigh In On Salesforce
Institutional investors have recently added to or reduced their stakes in the stock. Commonwealth Retirement Investments LLC acquired a new stake in Salesforce during the fourth quarter valued at approximately $25,000. Board of the Pension Protection Fund acquired a new position in Salesforce during the 4th quarter worth $26,000. Key Capital Management INC bought a new stake in shares of Salesforce during the 4th quarter valued at $26,000. Gilpin Wealth Management LLC bought a new stake in shares of Salesforce during the 4th quarter valued at $26,000. Finally, Legacy Bridge LLC bought a new stake in shares of Salesforce in the 4th quarter valued at $27,000. 80.43% of the stock is owned by institutional investors and hedge funds.
Salesforce News Roundup
Here are the key news stories impacting Salesforce this week:
- Positive Sentiment: Salesforce beat Q1 earnings and revenue estimates, with EPS of $3.88 versus $3.13 expected and revenue of $11.13 billion topping estimates, reinforcing confidence in the business. Salesforce earnings report
- Positive Sentiment: Management raised FY2027 EPS guidance to $14.06-$14.12, above Wall Street expectations, suggesting stronger profitability ahead. Salesforce earnings report
- Positive Sentiment: Multiple analysts reaffirmed or raised bullish views, including Wedbush at $325, Citizens JMP at $315, Cantor Fitzgerald at $250, and Piper Sandler at $215, signaling broad Wall Street support for CRM. Analyst updates
- Positive Sentiment: Salesforce announced an expanded collaboration with CVS Health to use Agentforce Health in call centers, highlighting real-world adoption of its AI products and supporting the AI growth story. CVS Health collaboration
- Neutral Sentiment: Some commentary says the stock remains weighed down by the debate over how Salesforce will compete in an AI-disrupted software market, even as the company tries to position Agentforce as a growth driver. Salesforce earnings analysis
- Neutral Sentiment: Salesforce’s Q2 revenue guidance of about $11.3 billion was slightly below some expectations, and cRPO growth slowed to 14% from 16%, which helps explain why enthusiasm has been tempered. CNBC earnings coverage
- Negative Sentiment: Wells Fargo and DA Davidson cut their price targets, reflecting some caution around near-term growth even though both kept relatively neutral-to-mixed ratings. Analyst updates
About Salesforce
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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