Salesforce (NYSE:CRM) Trading Up 0.8% – Still a Buy?

Salesforce, Inc. (NYSE:CRM) shot up 0.8% during trading on Friday . The company traded as high as $284.47 and last traded at $283.23. 1,199,268 shares were traded during mid-day trading, a decline of 82% from the average session volume of 6,517,855 shares. The stock had previously closed at $280.91.

Wall Street Analysts Forecast Growth

CRM has been the subject of several recent research reports. Piper Sandler upgraded shares of Salesforce from a “neutral” rating to an “overweight” rating and increased their target price for the stock from $268.00 to $325.00 in a research note on Tuesday, September 24th. Morgan Stanley increased their price objective on Salesforce from $320.00 to $330.00 and gave the stock an “overweight” rating in a research report on Thursday, August 29th. Wells Fargo & Company boosted their target price on Salesforce from $250.00 to $275.00 and gave the company an “equal weight” rating in a report on Thursday, August 29th. UBS Group upped their price target on Salesforce from $250.00 to $275.00 and gave the stock a “neutral” rating in a research note on Thursday, August 29th. Finally, Loop Capital reiterated a “hold” rating and issued a $270.00 price objective on shares of Salesforce in a research report on Thursday, September 19th. Eight analysts have rated the stock with a hold rating, twenty-seven have assigned a buy rating and four have given a strong buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $310.74.

Salesforce Stock Performance

The stock has a market cap of $278.83 billion, a price-to-earnings ratio of 51.75, a price-to-earnings-growth ratio of 2.39 and a beta of 1.30. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.04 and a quick ratio of 1.04. The stock’s 50-day moving average is $258.53 and its 200-day moving average is $264.52.

Salesforce (NYSE:CRM) last posted its quarterly earnings data on Wednesday, August 28th. The CRM provider reported $2.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.36 by $0.20. Salesforce had a return on equity of 12.01% and a net margin of 15.44%. The business had revenue of $9.33 billion for the quarter, compared to analysts’ expectations of $9.22 billion. During the same quarter last year, the firm earned $1.63 earnings per share. The business’s revenue was up 8.5% on a year-over-year basis. Analysts anticipate that Salesforce, Inc. will post 7.54 EPS for the current fiscal year.

Salesforce Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 8th. Stockholders of record on Wednesday, September 18th will be issued a dividend of $0.40 per share. The ex-dividend date is Wednesday, September 18th. This represents a $1.60 annualized dividend and a dividend yield of 0.56%. Salesforce’s payout ratio is currently 28.78%.

Insider Activity at Salesforce

In other Salesforce news, COO Brian Millham sold 8,427 shares of Salesforce stock in a transaction on Wednesday, October 2nd. The shares were sold at an average price of $280.00, for a total value of $2,359,560.00. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. In related news, insider Parker Harris sold 4,200 shares of the stock in a transaction that occurred on Tuesday, October 1st. The shares were sold at an average price of $271.75, for a total transaction of $1,141,350.00. Following the completion of the sale, the insider now owns 118,514 shares of the company’s stock, valued at approximately $32,206,179.50. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Brian Millham sold 8,427 shares of Salesforce stock in a transaction that occurred on Wednesday, October 2nd. The shares were sold at an average price of $280.00, for a total transaction of $2,359,560.00. The disclosure for this sale can be found here. Over the last three months, insiders sold 80,612 shares of company stock worth $21,133,273. 3.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Salesforce

Hedge funds and other institutional investors have recently made changes to their positions in the business. Waterloo Capital L.P. purchased a new stake in shares of Salesforce during the 4th quarter valued at about $342,000. Natixis Investment Managers International raised its stake in shares of Salesforce by 0.6% during the fourth quarter. Natixis Investment Managers International now owns 167,235 shares of the CRM provider’s stock valued at $44,006,000 after purchasing an additional 950 shares during the period. Ossiam lifted its position in shares of Salesforce by 27.8% during the fourth quarter. Ossiam now owns 465,824 shares of the CRM provider’s stock worth $122,577,000 after purchasing an additional 101,189 shares in the last quarter. OLD Point Trust & Financial Services N A purchased a new position in shares of Salesforce in the fourth quarter valued at $152,000. Finally, Connectus Wealth LLC grew its holdings in Salesforce by 8.7% during the 4th quarter. Connectus Wealth LLC now owns 168,706 shares of the CRM provider’s stock valued at $44,395,000 after purchasing an additional 13,443 shares in the last quarter. 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.