Salesforce (NYSE:CRM) Shares Down 4.4% – Should You Sell?
by Sarita Garza · The Markets DailySalesforce Inc. (NYSE:CRM – Get Free Report)’s stock price dropped 4.4% during mid-day trading on Wednesday . The stock traded as low as $181.81 and last traded at $184.9250. Approximately 16,259,152 shares changed hands during trading, an increase of 42% from the average daily volume of 11,464,071 shares. The stock had previously closed at $193.45.
Key Stories Impacting Salesforce
Here are the key news stories impacting Salesforce this week:
- Positive Sentiment: MarketBeat argues AI disruption fears are overblown and calls Salesforce underestimated — highlights CRM’s AI-native, data-rich SaaS franchise and analyst buy-side bias as a catalyst for a rebound. AI Disruption Overblown! 4 Software Stocks to Buy on the Dip
- Positive Sentiment: Seeking Alpha calls CRM a “Strong Buy,” arguing the recent selloff creates a value opportunity given large RPO, subscription growth and AI monetization — publishes an 18‑month, high-upside thesis. Salesforce: Buy The Fear In Enterprise SaaS Durability
- Positive Sentiment: Forbes and other outlets highlight CRM’s history of sharp rebounds and argue the stock is primed for a major bounce if execution and AI monetization stay on track. Why Salesforce Stock Is Primed For A Major Rebound
- Positive Sentiment: TV commentary (Jim Cramer) flagged CRM as “near a bottom,” reinforcing momentum among retail buyers seeking value in beaten-down SaaS names. Jim Cramer on Salesforce: “I Think It’s Near a Bottom”
- Neutral Sentiment: Strategists at firms like JP Morgan and Morgan Stanley (coverage summarized by Investopedia/others) say recent AI-driven weakness across software creates selective buying opportunities — broad industry tailwind but not guaranteed to lift every name immediately. These 5 Software Stocks Could Double in Price This Year, Says Morgan Stanley
- Neutral Sentiment: Barron’s and other market notes point to heavy short interest across software names that could spark a short squeeze and near-term rallies; this raises volatility risk but also upside potential. Software Stocks Look Primed for a Short Squeeze
- Neutral Sentiment: Cost actions and management changes: Reuters and Business Insider report Salesforce cuts less than 1,000 jobs, Business Insider reports
- Negative Sentiment: Reputational/headline risk from employee backlash: >1,400 staff urged CEO Benioff to drop potential ICE business after a controversial joke — this has prompted negative headlines and internal pressure that could affect sales/government deals or brand perception. Salesforce employees call on CEO Benioff to cancel ICE ‘opportunities’
Analyst Ratings Changes
A number of analysts recently issued reports on CRM shares. Barclays increased their price objective on Salesforce from $330.00 to $338.00 and gave the stock an “overweight” rating in a report on Monday, January 12th. Macquarie Infrastructure upped their price target on Salesforce from $250.00 to $265.00 and gave the company a “neutral” rating in a research report on Thursday, December 4th. Evercore cut their price objective on shares of Salesforce from $360.00 to $340.00 and set an “outperform” rating for the company in a research report on Thursday, December 4th. Northland Securities boosted their price objective on shares of Salesforce from $264.00 to $267.00 and gave the company a “market perform” rating in a research note on Thursday, December 4th. Finally, Bank of America lowered their target price on shares of Salesforce from $325.00 to $305.00 and set a “buy” rating on the stock in a research note on Monday, November 17th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Salesforce currently has a consensus rating of “Moderate Buy” and a consensus price target of $323.57.
Check Out Our Latest Research Report on CRM
Salesforce Trading Down 4.4%
The company has a debt-to-equity ratio of 0.14, a current ratio of 0.98 and a quick ratio of 0.98. The firm’s 50 day moving average price is $241.96 and its 200 day moving average price is $244.02. The stock has a market capitalization of $173.27 billion, a P/E ratio of 24.69, a P/E/G ratio of 1.32 and a beta of 1.27.
Salesforce (NYSE:CRM – Get Free Report) last announced its quarterly earnings results on Wednesday, December 3rd. The CRM provider reported $3.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.86 by $0.39. Salesforce had a return on equity of 14.41% and a net margin of 17.91%.The company had revenue of $10.26 billion for the quarter, compared to the consensus estimate of $10.27 billion. During the same quarter in the previous year, the business earned $2.41 EPS. Salesforce’s revenue was up 9.1% compared to the same quarter last year. Salesforce has set its Q4 2026 guidance at 3.020-3.040 EPS. As a group, equities research analysts expect that Salesforce Inc. will post 7.46 earnings per share for the current fiscal year.
Salesforce Dividend Announcement
The business also recently disclosed a quarterly dividend, which was paid on Thursday, January 8th. Shareholders of record on Thursday, December 18th were given a dividend of $0.416 per share. This represents a $1.66 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Thursday, December 18th. Salesforce’s payout ratio is presently 22.16%.
Insider Activity at Salesforce
In other news, insider Parker Harris sold 134,662 shares of the stock in a transaction that occurred on Tuesday, December 2nd. The stock was sold at an average price of $234.70, for a total value of $31,605,171.40. Following the completion of the transaction, the insider owned 139,767 shares of the company’s stock, valued at approximately $32,803,314.90. This represents a 49.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director G Mason Morfit purchased 96,000 shares of the company’s stock in a transaction that occurred on Friday, December 5th. The shares were purchased at an average price of $260.58 per share, for a total transaction of $25,015,680.00. Following the completion of the transaction, the director directly owned 2,994,509 shares of the company’s stock, valued at $780,309,155.22. This represents a 3.31% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 3.00% of the company’s stock.
Institutional Trading of Salesforce
Hedge funds and other institutional investors have recently modified their holdings of the business. Legacy Capital Wealth Management LLC purchased a new position in Salesforce during the 4th quarter valued at about $2,152,000. Picton Mahoney Asset Management bought a new position in shares of Salesforce during the fourth quarter valued at approximately $10,649,000. Mill Capital Management LLC lifted its holdings in shares of Salesforce by 2.9% during the fourth quarter. Mill Capital Management LLC now owns 60,041 shares of the CRM provider’s stock valued at $15,905,000 after purchasing an additional 1,718 shares during the last quarter. Accuvest Global Advisors bought a new stake in shares of Salesforce in the 4th quarter worth approximately $1,249,000. Finally, Empowered Funds LLC boosted its position in shares of Salesforce by 9.9% in the 4th quarter. Empowered Funds LLC now owns 135,533 shares of the CRM provider’s stock worth $35,904,000 after purchasing an additional 12,220 shares in the last quarter. 80.43% of the stock is owned by hedge funds and other institutional investors.
About Salesforce
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.