Salesforce (NYSE:CRM) Trading Down 3.8% – Here’s Why

Salesforce, Inc. (NYSE:CRM)’s share price dropped 3.8% on Thursday . The stock traded as low as $328.88 and last traded at $330.01. Approximately 7,471,475 shares changed hands during mid-day trading, an increase of 19% from the average daily volume of 6,302,406 shares. The stock had previously closed at $343.18.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. UBS Group upped their price target on shares of Salesforce from $275.00 to $360.00 and gave the company a “neutral” rating in a research report on Friday, November 22nd. BMO Capital Markets raised their target price on Salesforce from $305.00 to $385.00 and gave the stock an “outperform” rating in a research report on Friday, November 15th. JPMorgan Chase & Co. upped their price target on Salesforce from $310.00 to $340.00 and gave the company an “overweight” rating in a research report on Wednesday, November 20th. Canaccord Genuity Group raised their price objective on Salesforce from $300.00 to $315.00 and gave the stock a “buy” rating in a research report on Thursday, August 29th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $345.00 target price on shares of Salesforce in a report on Friday, September 20th. Eight research analysts have rated the stock with a hold rating, twenty-eight have issued a buy rating and four have issued a strong buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $341.89.

Salesforce Stock Performance

The firm’s 50 day moving average price is $302.12 and its 200-day moving average price is $270.65. The firm has a market cap of $315.47 billion, a price-to-earnings ratio of 57.39, a P/E/G ratio of 2.99 and a beta of 1.29. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.04 and a quick ratio of 1.04.

Salesforce (NYSE:CRM) last posted its quarterly earnings results on Wednesday, August 28th. The CRM provider reported $2.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.36 by $0.20. Salesforce had a net margin of 15.44% and a return on equity of 12.01%. The company had revenue of $9.33 billion for the quarter, compared to analyst estimates of $9.22 billion. During the same period last year, the business posted $1.63 EPS. The business’s quarterly revenue was up 8.5% on a year-over-year basis. On average, analysts anticipate that Salesforce, Inc. will post 7.54 earnings per share for the current year.

Salesforce Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, October 8th. Stockholders of record on Wednesday, September 18th were issued a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 0.48%. The ex-dividend date was Wednesday, September 18th. Salesforce’s payout ratio is presently 27.83%.

Insider Activity at Salesforce

In other news, insider Sabastian Niles sold 2,484 shares of the stock in a transaction on Wednesday, September 11th. The shares were sold at an average price of $244.81, for a total value of $608,108.04. Following the completion of the transaction, the insider now owns 828 shares in the company, valued at approximately $202,702.68. This represents a 75.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Miguel Milano sold 719 shares of the company’s stock in a transaction dated Monday, November 25th. The shares were sold at an average price of $342.81, for a total transaction of $246,480.39. Following the completion of the sale, the insider now directly owns 4,659 shares in the company, valued at approximately $1,597,151.79. The trade was a 13.37 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 144,510 shares of company stock worth $42,475,538. 3.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Salesforce

Several institutional investors have recently added to or reduced their stakes in CRM. Old Port Advisors acquired a new stake in Salesforce in the 1st quarter valued at about $226,000. GAMMA Investing LLC increased its holdings in shares of Salesforce by 51.2% in the second quarter. GAMMA Investing LLC now owns 7,036 shares of the CRM provider’s stock valued at $1,809,000 after purchasing an additional 2,382 shares in the last quarter. Massmutual Trust Co. FSB ADV raised its position in Salesforce by 11.7% in the 2nd quarter. Massmutual Trust Co. FSB ADV now owns 27,823 shares of the CRM provider’s stock worth $7,153,000 after purchasing an additional 2,915 shares during the last quarter. M&R Capital Management Inc. lifted its holdings in Salesforce by 38.9% during the 2nd quarter. M&R Capital Management Inc. now owns 7,491 shares of the CRM provider’s stock worth $1,926,000 after buying an additional 2,099 shares in the last quarter. Finally, Hudson Valley Investment Advisors Inc. ADV boosted its position in Salesforce by 0.3% in the 2nd quarter. Hudson Valley Investment Advisors Inc. ADV now owns 27,449 shares of the CRM provider’s stock valued at $7,161,000 after buying an additional 79 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.