Salesforce (NYSE:CRM) Trading Down 0.4% – Here’s Why

Salesforce, Inc. (NYSE:CRM)’s share price traded down 0.4% during trading on Wednesday . The company traded as low as $332.41 and last traded at $334.33. 3,019,020 shares changed hands during trading, a decline of 53% from the average session volume of 6,379,467 shares. The stock had previously closed at $335.74.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on CRM shares. Northland Capmk raised Salesforce from a “hold” rating to a “strong-buy” rating in a report on Wednesday, October 2nd. Oppenheimer reaffirmed an “outperform” rating and set a $415.00 price objective (up previously from $385.00) on shares of Salesforce in a research report on Wednesday, December 4th. JMP Securities restated a “market outperform” rating and issued a $450.00 target price on shares of Salesforce in a research report on Wednesday, December 18th. Northland Securities reiterated an “outperform” rating and set a $440.00 price target (up previously from $400.00) on shares of Salesforce in a research report on Wednesday, December 4th. Finally, TD Cowen boosted their price objective on shares of Salesforce from $290.00 to $340.00 and gave the company a “hold” rating in a research report on Thursday, November 21st. Eight research analysts have rated the stock with a hold rating, thirty have given a buy rating and four have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $378.86.

Salesforce Stock Down 1.1 %

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 50 day simple moving average of $331.09 and a 200 day simple moving average of $285.02. The stock has a market cap of $316.44 billion, a price-to-earnings ratio of 54.38, a PEG ratio of 3.21 and a beta of 1.30.

Salesforce (NYSE:CRM) last announced its quarterly earnings results on Tuesday, December 3rd. The CRM provider reported $2.41 EPS for the quarter, missing analysts’ consensus estimates of $2.44 by ($0.03). The business had revenue of $9.44 billion for the quarter, compared to the consensus estimate of $9.35 billion. Salesforce had a net margin of 15.96% and a return on equity of 12.34%. The business’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same quarter last year, the firm posted $1.62 EPS. As a group, analysts expect that Salesforce, Inc. will post 7.48 earnings per share for the current fiscal year.

Salesforce Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 9th. Stockholders of record on Wednesday, December 18th will be paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 0.48%. The ex-dividend date of this dividend is Wednesday, December 18th. Salesforce’s dividend payout ratio (DPR) is presently 26.32%.

Insider Activity

In related news, CEO Marc Benioff sold 317,105 shares of the business’s stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $346.78, for a total transaction of $109,965,671.90. Following the transaction, the chief executive officer now directly owns 12,162,457 shares in the company, valued at approximately $4,217,696,838.46. The trade was a 2.54 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director G Mason Morfit sold 722,300 shares of Salesforce stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $346.11, for a total transaction of $249,995,253.00. Following the transaction, the director now directly owns 3,192,009 shares in the company, valued at approximately $1,104,786,234.99. This represents a 18.45 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,186,017 shares of company stock worth $405,971,793 over the last 90 days. 3.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Salesforce

Several institutional investors have recently added to or reduced their stakes in CRM. Legacy Capital Wealth Partners LLC purchased a new stake in shares of Salesforce during the 2nd quarter worth approximately $327,000. Founders Financial Securities LLC increased its position in Salesforce by 7.6% in the second quarter. Founders Financial Securities LLC now owns 3,504 shares of the CRM provider’s stock worth $901,000 after buying an additional 247 shares during the last quarter. Larson Financial Group LLC raised its stake in shares of Salesforce by 202.7% in the second quarter. Larson Financial Group LLC now owns 3,081 shares of the CRM provider’s stock valued at $792,000 after buying an additional 2,063 shares during the period. GPM Growth Investors Inc. purchased a new position in shares of Salesforce during the 2nd quarter valued at $2,684,000. Finally, Pursue Wealth Partners LLC grew its stake in shares of Salesforce by 29.9% during the 2nd quarter. Pursue Wealth Partners LLC now owns 3,780 shares of the CRM provider’s stock worth $972,000 after acquiring an additional 871 shares during the period. Institutional investors own 80.43% of the company’s stock.

Salesforce Company Profile

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.