Salesforce (NYSE:CRM) Stock Price Down 1.7% – What’s Next?

Salesforce, Inc. (NYSE:CRM) fell 1.7% on Wednesday . The company traded as low as $351.82 and last traded at $353.74. 2,303,895 shares were traded during mid-day trading, a decline of 62% from the average session volume of 6,043,129 shares. The stock had previously closed at $359.95.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on CRM. UBS Group boosted their price objective on shares of Salesforce from $275.00 to $360.00 and gave the stock a “neutral” rating in a report on Friday, November 22nd. Bank of America boosted their price objective on shares of Salesforce from $390.00 to $440.00 and gave the stock a “buy” rating in a report on Wednesday, December 4th. Northland Securities reiterated an “outperform” rating and set a $440.00 target price (up from $400.00) on shares of Salesforce in a research note on Wednesday, December 4th. Northland Capmk upgraded shares of Salesforce from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, October 2nd. Finally, BMO Capital Markets boosted their target price on shares of Salesforce from $385.00 to $425.00 and gave the company an “outperform” rating in a research note on Wednesday, December 4th. One analyst has rated the stock with a sell rating, six have issued a hold rating, thirty-one have given a buy rating and four have assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Salesforce presently has an average rating of “Moderate Buy” and an average price target of $377.63.

Salesforce Price Performance

The firm’s fifty day simple moving average is $337.96 and its 200 day simple moving average is $296.02. The firm has a market cap of $339.17 billion, a P/E ratio of 58.43, a P/E/G ratio of 3.01 and a beta of 1.30. 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 EPS for the quarter, missing the consensus estimate 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 the consensus estimate of $9.35 billion. During the same period last year, the company earned $1.62 EPS. The firm’s revenue for the quarter was up 8.3% on a year-over-year basis. As a group, analysts forecast that Salesforce, Inc. will post 7.48 earnings per share for the current year.

Salesforce Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 9th. Stockholders of record on Wednesday, December 18th were given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 0.45%. The ex-dividend date was Wednesday, December 18th. Salesforce’s dividend payout ratio is 26.32%.

Insider Activity

In other news, CAO Sundeep G. Reddy sold 500 shares of the company’s stock in a transaction dated Friday, November 1st. The shares were sold at an average price of $290.23, for a total transaction of $145,115.00. Following the sale, the chief accounting officer now directly owns 6,506 shares in the company, valued at approximately $1,888,236.38. This represents a 7.14 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Amy E. Weaver sold 6,221 shares of the stock in a transaction dated Tuesday, December 24th. The stock was sold at an average price of $343.00, for a total transaction of $2,133,803.00. Following the completion of the sale, the chief financial officer now directly owns 53,861 shares in the company, valued at $18,474,323. This trade represents a 10.35 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,109,169 shares of company stock worth $383,432,020. 3.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Salesforce

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Avidian Wealth Enterprises LLC raised its position in Salesforce by 15.0% in the 4th quarter. Avidian Wealth Enterprises LLC now owns 2,532 shares of the CRM provider’s stock worth $846,000 after purchasing an additional 330 shares during the period. Great Lakes Retirement Inc. raised its position in Salesforce by 1.6% in the 4th quarter. Great Lakes Retirement Inc. now owns 9,675 shares of the CRM provider’s stock worth $3,235,000 after purchasing an additional 149 shares during the period. Kentucky Trust Co bought a new position in Salesforce in the 4th quarter worth about $2,477,000. Perissos Private Wealth Management LLC bought a new position in Salesforce in the 4th quarter worth about $242,000. Finally, TFB Advisors LLC grew its stake in Salesforce by 1.9% in the 4th quarter. TFB Advisors LLC now owns 2,024 shares of the CRM provider’s stock worth $677,000 after acquiring an additional 38 shares in the last quarter. 80.43% of the stock is owned by hedge funds and other institutional investors.

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.