Salesforce (NYSE:CRM) Shares Gap Up After Strong Earnings

Salesforce, Inc. (NYSE:CRM)’s share price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $258.90, but opened at $271.01. Salesforce shares last traded at $259.69, with a volume of 5,643,710 shares.

The CRM provider reported $1.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.73 by $0.19. Salesforce had a return on equity of 11.57% and a net margin of 15.30%. The firm had revenue of $9.33 billion for the quarter, compared to analyst estimates of $9.22 billion. During the same period in the previous year, the company earned $1.63 earnings per share. Salesforce’s revenue was up 8.5% compared to the same quarter last year.

Salesforce Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 25th. Investors of record on Tuesday, July 9th were paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 0.62%. The ex-dividend date of this dividend was Tuesday, July 9th. Salesforce’s dividend payout ratio is presently 28.78%.

Wall Street Analyst Weigh In

CRM has been the topic of several recent research reports. DA Davidson lifted their price target on shares of Salesforce from $230.00 to $250.00 and gave the stock a “neutral” rating in a research report on Thursday. Sanford C. Bernstein lifted their target price on Salesforce from $234.00 to $236.00 and gave the stock an “outperform” rating in a report on Thursday. Mizuho cut their target price on Salesforce from $345.00 to $300.00 and set a “buy” rating on the stock in a research report on Thursday, May 30th. Morgan Stanley increased their price target on Salesforce from $320.00 to $330.00 and gave the company an “overweight” rating in a research report on Thursday. Finally, Evercore ISI reissued an “outperform” rating and issued a $300.00 price target on shares of Salesforce in a research note on Monday. Nine research analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $301.91.

Insider Activity

In other Salesforce news, CFO Amy E. Weaver sold 897 shares of the business’s stock in a transaction that occurred on Tuesday, July 23rd. The shares were sold at an average price of $255.78, for a total value of $229,434.66. Following the completion of the sale, the chief financial officer now directly owns 51,109 shares of the company’s stock, valued at $13,072,660.02. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In related news, COO Brian Millham sold 1,678 shares of the firm’s stock in a transaction that occurred on Monday, June 24th. The stock was sold at an average price of $242.32, for a total value of $406,612.96. Following the transaction, the chief operating officer now directly owns 1,662 shares of the company’s stock, valued at approximately $402,735.84. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Amy E. Weaver sold 897 shares of the business’s stock in a transaction that occurred on Tuesday, July 23rd. The stock was sold at an average price of $255.78, for a total value of $229,434.66. Following the completion of the sale, the chief financial officer now owns 51,109 shares of the company’s stock, valued at $13,072,660.02. The disclosure for this sale can be found here. Insiders sold a total of 112,964 shares of company stock worth $27,956,647 in the last three months. 3.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Salesforce

A number of institutional investors have recently modified their holdings of CRM. Gilbert & Cook Inc. boosted its holdings in Salesforce by 6.9% during the fourth quarter. Gilbert & Cook Inc. now owns 5,659 shares of the CRM provider’s stock valued at $1,489,000 after acquiring an additional 366 shares during the period. Savant Capital LLC boosted its stake in Salesforce by 27.7% during the 4th quarter. Savant Capital LLC now owns 16,576 shares of the CRM provider’s stock valued at $4,362,000 after purchasing an additional 3,595 shares during the period. Essex Financial Services Inc. grew its holdings in Salesforce by 11.5% in the 4th quarter. Essex Financial Services Inc. now owns 2,242 shares of the CRM provider’s stock valued at $590,000 after buying an additional 232 shares during the last quarter. LGT Fund Management Co Ltd. bought a new position in Salesforce in the 4th quarter worth approximately $2,239,000. Finally, Fisher Asset Management LLC lifted its holdings in shares of Salesforce by 5.3% during the fourth quarter. Fisher Asset Management LLC now owns 14,921,042 shares of the CRM provider’s stock worth $3,926,323,000 after buying an additional 752,566 shares during the last quarter. Institutional investors own 80.43% of the company’s stock.

Salesforce Stock Down 0.8 %

The firm has a 50-day moving average price of $253.98 and a two-hundred day moving average price of $271.54. The company has a market capitalization of $248.95 billion, a P/E ratio of 46.21, a PEG ratio of 2.22 and a beta of 1.29. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 0.14.

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.