Salesforce (NYSE:CRM) Trading Up 1.2% – Should You Buy?

by · The Markets Daily

Salesforce Inc. (NYSE:CRMGet Free Report) was up 1.2% on Wednesday . The company traded as high as $267.83 and last traded at $266.0610. Approximately 5,904,796 shares changed hands during trading, a decline of 16% from the average daily volume of 7,024,713 shares. The stock had previously closed at $262.90.

Key Stories Impacting Salesforce

Here are the key news stories impacting Salesforce this week:

Wall Street Analyst Weigh In

A number of research analysts have commented on CRM shares. Truist Financial decreased their price objective on Salesforce from $400.00 to $380.00 and set a “buy” rating on the stock in a report on Thursday, December 4th. Morgan Stanley reduced their target price on shares of Salesforce from $405.00 to $398.00 and set an “overweight” rating for the company in a research report on Tuesday, December 9th. Royal Bank Of Canada raised their price target on shares of Salesforce from $250.00 to $290.00 and gave the stock a “sector perform” rating in a research report on Monday. BTIG Research started coverage on shares of Salesforce in a report on Tuesday, December 16th. They issued a “buy” rating and a $335.00 price objective for the company. Finally, Wedbush restated an “outperform” rating and set a $375.00 target price on shares of Salesforce in a research report on Thursday, December 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $327.74.

Check Out Our Latest Research Report on CRM

Salesforce Stock Performance

The stock’s fifty day moving average price is $250.33 and its two-hundred day moving average price is $251.70. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.98 and a current ratio of 0.98. The company has a market cap of $243.65 billion, a P/E ratio of 34.72, a P/E/G ratio of 1.94 and a beta of 1.26.

Salesforce (NYSE:CRMGet Free Report) last announced its quarterly earnings data on Wednesday, December 3rd. The CRM provider reported $3.25 EPS for the quarter, beating the consensus estimate of $2.86 by $0.39. The business had revenue of $10.26 billion during the quarter, compared to the consensus estimate of $10.27 billion. Salesforce had a net margin of 17.91% and a return on equity of 14.41%. The company’s revenue was up 9.1% on a year-over-year basis. During the same period in the previous year, the business earned $2.41 earnings per share. Salesforce has set its Q4 2026 guidance at 3.020-3.040 EPS. As a group, equities analysts predict that Salesforce Inc. will post 7.46 earnings per share for the current year.

Salesforce Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 8th. Shareholders of record on Thursday, December 18th were given a $0.416 dividend. This represents a $1.66 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Thursday, December 18th. Salesforce’s payout ratio is currently 22.16%.

Insider Buying and Selling

In other Salesforce news, CEO Marc Benioff sold 2,250 shares of the firm’s stock in a transaction that occurred on Friday, October 31st. The shares were sold at an average price of $258.20, for a total value of $580,950.00. Following the sale, the chief executive officer owned 11,911,571 shares in the company, valued at $3,075,567,632.20. This trade represents a 0.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Parker Harris sold 134,662 shares of the company’s stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $234.70, for a total transaction of $31,605,171.40. Following the transaction, the insider owned 139,767 shares of the company’s stock, valued at $32,803,314.90. This trade represents a 49.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 155,034 shares of company stock worth $36,726,584 in the last three months. 3.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Salesforce

A number of hedge funds and other institutional investors have recently made changes to their positions in CRM. Painted Porch Advisors LLC increased its position in shares of Salesforce by 260.0% during the second quarter. Painted Porch Advisors LLC now owns 90 shares of the CRM provider’s stock worth $25,000 after buying an additional 65 shares during the period. Board of the Pension Protection Fund bought a new stake in Salesforce during the fourth quarter valued at $26,000. Evolution Wealth Management Inc. acquired a new stake in Salesforce during the 2nd quarter worth about $27,000. Marquette Asset Management LLC bought a new position in shares of Salesforce in the 3rd quarter worth about $26,000. Finally, CBIZ Investment Advisory Services LLC lifted its stake in shares of Salesforce by 314.8% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 112 shares of the CRM provider’s stock valued at $30,000 after purchasing an additional 85 shares during the period. 80.43% of the stock is owned by institutional investors and hedge funds.

About Salesforce

(Get Free Report)

Salesforce, founded in 1999 and headquartered in San Francisco, is a global provider of cloud-based software focused on customer relationship management (CRM) and enterprise applications. The company popularized the software-as-a-service (SaaS) model for CRM and has built a broad portfolio of products designed to help organizations manage sales, service, marketing, commerce and analytics through a unified, cloud-first platform.

Core offerings include Sales Cloud for sales automation, Service Cloud for customer support, Marketing Cloud for digital marketing and engagement, and Commerce Cloud for e-commerce.

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