Salesforce (NYSE:CRM) Trading Up 0.6% – Should You Buy?

Shares of Salesforce, Inc. (NYSE:CRM) were up 0.6% during mid-day trading on Thursday . The company traded as high as $343.53 and last traded at $339.12. Approximately 1,947,464 shares traded hands during mid-day trading, a decline of 70% from the average daily volume of 6,394,578 shares. The stock had previously closed at $337.23.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. Stifel Nicolaus lifted their target price on shares of Salesforce from $390.00 to $425.00 and gave the stock a “buy” rating in a research report on Wednesday, December 4th. Wells Fargo & Company upped their price objective on Salesforce from $275.00 to $330.00 and gave the company an “equal weight” rating in a research note on Tuesday, November 12th. Loop Capital lifted their target price on Salesforce from $340.00 to $360.00 and gave the stock a “hold” rating in a research note on Wednesday, December 4th. Cfra set a $343.00 price target on shares of Salesforce in a research report on Thursday, October 17th. Finally, Erste Group Bank raised shares of Salesforce from a “hold” rating to a “buy” rating in a research report on Tuesday, November 19th. Eight investment analysts have rated the stock with a hold rating, thirty have assigned a buy rating and four have issued a strong buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $378.86.

Salesforce Trading Up 2.2 %

The stock has a market capitalization of $328.87 billion, a P/E ratio of 56.52, a price-to-earnings-growth ratio of 3.21 and a beta of 1.30. The stock’s fifty day moving average price is $323.14 and its two-hundred day moving average price is $279.01. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.14.

Salesforce (NYSE:CRM) last released its quarterly earnings data on Tuesday, December 3rd. The CRM provider reported $2.41 EPS for the quarter, missing the consensus estimate of $2.44 by ($0.03). Salesforce had a return on equity of 12.34% and a net margin of 15.96%. The company had revenue of $9.44 billion during the quarter, compared to analysts’ expectations of $9.35 billion. During the same quarter in the prior year, the firm posted $1.62 EPS. The firm’s quarterly revenue was up 8.3% on a year-over-year basis. Equities research analysts forecast that Salesforce, Inc. will post 7.48 EPS for the current year.

Salesforce Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 9th. Stockholders of record on Wednesday, December 18th will be issued a dividend of $0.40 per share. The ex-dividend date is Wednesday, December 18th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.47%. Salesforce’s dividend payout ratio is currently 26.32%.

Insider Activity at Salesforce

In related news, Director G Mason Morfit sold 15,353 shares of the business’s stock in a transaction dated Friday, December 20th. The shares were sold at an average price of $340.55, for a total transaction of $5,228,464.15. Following the sale, the director now owns 2,898,509 shares of the company’s stock, valued at $987,087,239.95. The trade was a 0.53 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, COO Brian Millham sold 5,735 shares of the firm’s stock in a transaction that occurred on Monday, September 23rd. The shares were sold at an average price of $266.22, for a total transaction of $1,526,771.70. Following the transaction, the chief operating officer now directly owns 1,663 shares of the company’s stock, valued at $442,723.86. This represents a 77.52 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,189,056 shares of company stock worth $405,093,170 in the last 90 days. Company insiders own 3.20% of the company’s stock.

Institutional Investors Weigh In On Salesforce

Several hedge funds have recently added to or reduced their stakes in the stock. Nabity Jensen Investment Management Inc bought a new position in Salesforce in the 3rd quarter valued at approximately $1,215,000. Prime Capital Investment Advisors LLC lifted its holdings in shares of Salesforce by 13.6% during the third quarter. Prime Capital Investment Advisors LLC now owns 58,036 shares of the CRM provider’s stock valued at $15,885,000 after purchasing an additional 6,938 shares in the last quarter. Aljian Capital Management LLC boosted its position in shares of Salesforce by 16.1% during the third quarter. Aljian Capital Management LLC now owns 13,258 shares of the CRM provider’s stock valued at $3,629,000 after buying an additional 1,834 shares during the last quarter. AIA Group Ltd increased its holdings in Salesforce by 8.9% in the 3rd quarter. AIA Group Ltd now owns 24,028 shares of the CRM provider’s stock worth $6,577,000 after buying an additional 1,962 shares in the last quarter. Finally, Geode Capital Management LLC raised its position in Salesforce by 1.3% in the 3rd quarter. Geode Capital Management LLC now owns 19,780,318 shares of the CRM provider’s stock worth $5,395,132,000 after buying an additional 257,501 shares during the last quarter. 80.43% of the stock is owned by institutional investors.

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.