Salesforce (NYSE:CRM) Trading 1.5% Higher – Still a Buy?

Salesforce, Inc. (NYSE:CRM) rose 1.5% during mid-day trading on Friday . The stock traded as high as $301.98 and last traded at $299.18. Approximately 2,624,581 shares changed hands during mid-day trading, a decline of 60% from the average daily volume of 6,622,800 shares. The stock had previously closed at $294.90.

Analyst Ratings Changes

A number of analysts recently commented on the stock. Oppenheimer dropped their price target on shares of Salesforce from $415.00 to $380.00 and set an “outperform” rating on the stock in a research note on Thursday. Citigroup reaffirmed a “cautious” rating on shares of Salesforce in a report on Thursday. JPMorgan Chase & Co. lifted their price target on Salesforce from $340.00 to $380.00 and gave the company an “overweight” rating in a research report on Wednesday, December 4th. Wells Fargo & Company dropped their price objective on Salesforce from $345.00 to $310.00 and set an “equal weight” rating on the stock in a report on Thursday. Finally, Loop Capital reduced their target price on Salesforce from $330.00 to $300.00 and set a “hold” rating for the company in a report on Thursday. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating, thirty-two have issued a buy rating and four have issued a strong buy rating to the company’s stock. According to MarketBeat, Salesforce currently has an average rating of “Moderate Buy” and an average target price of $365.32.

Salesforce Stock Performance

The company has a market cap of $284.83 billion, a P/E ratio of 48.95, a price-to-earnings-growth ratio of 2.58 and a beta of 1.31. The business has a 50 day moving average price of $329.11 and a two-hundred day moving average price of $307.58. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.11 and a current ratio of 1.11.

Salesforce (NYSE:CRM) last released its quarterly earnings data on Tuesday, December 3rd. The CRM provider reported $2.41 earnings per share for the quarter, missing analysts’ consensus estimates of $2.44 by ($0.03). Salesforce had a net margin of 15.96% and a return on equity of 12.34%. The company had revenue of $9.44 billion for the quarter, compared to analysts’ expectations of $9.35 billion. During the same period last year, the company posted $1.62 EPS. The business’s revenue for the quarter was up 8.3% compared to the same quarter last year. On average, sell-side analysts anticipate that Salesforce, Inc. will post 7.46 earnings per share for the current year.

Salesforce Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, January 9th. Shareholders of record on Wednesday, December 18th were given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.54%. The ex-dividend date was Wednesday, December 18th. Salesforce’s payout ratio is 25.16%.

Insider Activity

In related news, CEO Marc Benioff sold 317,105 shares of the company’s stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $346.78, for a total transaction of $109,965,671.90. Following the completion of the transaction, the chief executive officer now owns 12,162,457 shares in the company, valued at $4,217,696,838.46. This represents a 2.54 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Sundeep G. Reddy sold 436 shares of Salesforce stock in a transaction on Thursday, January 23rd. The shares were sold at an average price of $332.28, for a total transaction of $144,874.08. Following the completion of the sale, the chief accounting officer now owns 7,057 shares in the company, valued at approximately $2,344,899.96. This trade represents a 5.82 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,102,572 shares of company stock valued at $381,283,706. Insiders own 3.20% of the company’s stock.

Institutional Investors Weigh In On Salesforce

A number of large investors have recently modified their holdings of the stock. Bernard Wealth Management Corp. bought a new stake in Salesforce during the 4th quarter valued at approximately $25,000. Accredited Wealth Management LLC bought a new stake in shares of Salesforce during the fourth quarter valued at approximately $27,000. Arlington Trust Co LLC grew its stake in Salesforce by 85.1% in the fourth quarter. Arlington Trust Co LLC now owns 87 shares of the CRM provider’s stock worth $29,000 after purchasing an additional 40 shares during the period. Compass Financial Services Inc bought a new position in Salesforce in the fourth quarter worth $30,000. Finally, Asset Planning Inc bought a new position in Salesforce in the fourth quarter worth $31,000. 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.