Salesforce (NYSE:CRM) Stock Price Down 1.2% – Here’s Why

Shares of Salesforce, Inc. (NYSE:CRM) were down 1.2% during mid-day trading on Tuesday . The stock traded as low as $322.33 and last traded at $323.13. Approximately 1,701,442 shares traded hands during trading, a decline of 73% from the average daily volume of 6,245,388 shares. The stock had previously closed at $327.20.

Analysts Set New Price Targets

A number of analysts recently weighed in on the company. JMP Securities restated a “market outperform” rating and issued a $450.00 price objective on shares of Salesforce in a report on Wednesday, December 18th. Loop Capital raised their price objective on Salesforce from $340.00 to $360.00 and gave the stock a “hold” rating in a research report on Wednesday, December 4th. UBS Group upped their target price on Salesforce from $275.00 to $360.00 and gave the company a “neutral” rating in a report on Friday, November 22nd. Northland Securities restated an “outperform” rating and issued a $440.00 price target (up previously from $400.00) on shares of Salesforce in a research report on Wednesday, December 4th. Finally, JPMorgan Chase & Co. increased their price objective on shares of Salesforce from $340.00 to $380.00 and gave the stock an “overweight” rating in a research report on Wednesday, December 4th. One analyst has rated the stock with a sell rating, six have assigned a hold rating, thirty-one have issued a buy rating and four have given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Salesforce currently has an average rating of “Moderate Buy” and an average target price of $377.63.

Salesforce Price Performance

The firm’s 50-day moving average is $338.89 and its 200-day moving average is $301.53. The company has a market capitalization of $311.69 billion, a PE ratio of 53.43, a price-to-earnings-growth ratio of 2.66 and a beta of 1.31. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 0.14.

Salesforce (NYSE:CRM) last posted its quarterly earnings results on Tuesday, December 3rd. The CRM provider reported $2.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.44 by ($0.03). The business had revenue of $9.44 billion for the quarter, compared to analysts’ expectations of $9.35 billion. Salesforce had a net margin of 15.96% and a return on equity of 12.34%. The business’s quarterly revenue was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.62 earnings per share. Equities analysts predict that Salesforce, Inc. will post 7.48 earnings per share for the current fiscal year.

Salesforce Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 9th. Shareholders of record on Wednesday, December 18th were issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.49%. The ex-dividend date was Wednesday, December 18th. Salesforce’s payout ratio is 26.32%.

Insider Activity at Salesforce

In other Salesforce news, Director G Mason Morfit sold 722,300 shares of the stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $346.11, for a total transaction of $249,995,253.00. Following the completion of the transaction, the director now owns 3,192,009 shares in the company, valued at $1,104,786,234.99. This trade represents a 18.45 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Brian Millham sold 14,808 shares of the company’s stock in a transaction dated Friday, November 22nd. The shares were sold at an average price of $338.95, for a total transaction of $5,019,171.60. The disclosure for this sale can be found here. Insiders have sold 1,111,420 shares of company stock valued at $384,366,700 over the last ninety days. Insiders own 3.20% of the company’s stock.

Institutional Investors Weigh In On Salesforce

Hedge funds have recently modified their holdings of the business. KLP Kapitalforvaltning AS acquired a new stake in Salesforce in the fourth quarter valued at approximately $121,868,000. AXQ Capital LP boosted its stake in Salesforce by 135.1% in the fourth quarter. AXQ Capital LP now owns 2,111 shares of the CRM provider’s stock valued at $706,000 after acquiring an additional 1,213 shares in the last quarter. Marietta Investment Partners LLC lifted its stake in shares of Salesforce by 6.3% during the fourth quarter. Marietta Investment Partners LLC now owns 4,355 shares of the CRM provider’s stock worth $1,456,000 after buying an additional 257 shares during the period. Intellus Advisors LLC acquired a new position in Salesforce during the fourth quarter valued at $284,000. Finally, American Century Companies Inc. increased its holdings in Salesforce by 1.8% in the fourth quarter. American Century Companies Inc. now owns 3,811,354 shares of the CRM provider’s stock valued at $1,274,250,000 after buying an additional 67,930 shares in the last quarter. Hedge funds and other institutional investors own 80.43% of the company’s stock.

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.