Salesforce (NYSE:CRM) Trading 5.4% Higher – Here’s Why

Salesforce Inc. (NYSE:CRMGet Free Report) shares traded up 5.4% during trading on Friday . The stock traded as high as $158.46 and last traded at $158.2260. 19,867,233 shares traded hands during mid-day trading, an increase of 41% from the average session volume of 14,057,113 shares. The stock had previously closed at $150.19.

Key Headlines Impacting Salesforce

Here are the key news stories impacting Salesforce this week:

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on CRM shares. Wedbush restated an “outperform” rating and set a $325.00 price target on shares of Salesforce in a research report on Thursday, May 28th. BMO Capital Markets lowered their price objective on Salesforce from $225.00 to $215.00 and set an “outperform” rating for the company in a research report on Thursday, May 28th. Sanford C. Bernstein dropped their price objective on Salesforce from $194.00 to $173.00 and set an “underperform” rating for the company in a research note on Thursday, May 28th. Macquarie Infrastructure decreased their target price on shares of Salesforce from $200.00 to $190.00 and set a “neutral” rating on the stock in a research note on Thursday, May 28th. Finally, Stifel Nicolaus dropped their price target on shares of Salesforce from $300.00 to $250.00 and set a “buy” rating for the company in a research report on Thursday, February 26th. One analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, eleven have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $257.61.

Get Our Latest Stock Analysis on Salesforce

Salesforce Trading Up 5.4%

The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.79 and a current ratio of 0.79. The stock’s 50-day simple moving average is $175.95 and its 200-day simple moving average is $201.50. The firm has a market capitalization of $129.59 billion, a PE ratio of 18.31, a P/E/G ratio of 0.95 and a beta of 1.16.

Salesforce (NYSE:CRMGet Free Report) last issued its quarterly earnings data on Wednesday, May 27th. The CRM provider reported $3.88 EPS for the quarter, topping the consensus estimate of $3.13 by $0.75. Salesforce had a net margin of 18.73% and a return on equity of 18.72%. The business had revenue of $11.13 billion during the quarter, compared to analyst estimates of $11.05 billion. During the same period in the prior year, the business earned $2.58 EPS. The company’s revenue for the quarter was up 13.3% on a year-over-year basis. Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS. As a group, sell-side analysts expect that Salesforce Inc. will post 10.29 EPS for the current fiscal year.

Salesforce Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th will be issued a $0.44 dividend. The ex-dividend date is Thursday, June 11th. This represents a $1.76 annualized dividend and a yield of 1.1%. Salesforce’s dividend payout ratio (DPR) is 20.37%.

Salesforce announced that its Board of Directors has approved a stock buyback program on Monday, March 16th that authorizes the company to repurchase $25.00 billion in shares. This repurchase authorization authorizes the CRM provider to repurchase up to 14.1% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in CRM. J. Stern & Co. LLP lifted its stake in shares of Salesforce by 24,056.7% in the 4th quarter. J. Stern & Co. LLP now owns 47,385,511 shares of the CRM provider’s stock valued at $12,552,896,000 after purchasing an additional 47,189,352 shares during the period. Norges Bank purchased a new stake in Salesforce in the fourth quarter worth $3,182,951,000. Capital World Investors raised its holdings in Salesforce by 159.0% in the third quarter. Capital World Investors now owns 17,325,206 shares of the CRM provider’s stock worth $4,106,255,000 after purchasing an additional 10,636,161 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in Salesforce by 130.2% in the first quarter. Arrowstreet Capital Limited Partnership now owns 12,659,217 shares of the CRM provider’s stock worth $2,363,096,000 after purchasing an additional 7,160,302 shares in the last quarter. Finally, Cardano Risk Management B.V. lifted its position in Salesforce by 924.7% during the fourth quarter. Cardano Risk Management B.V. now owns 3,883,610 shares of the CRM provider’s stock valued at $1,028,807,000 after buying an additional 3,504,605 shares during the period. Hedge funds and other institutional investors own 80.43% of the company’s stock.

About Salesforce

(Get Free Report)

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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