Salesforce (NYSE:CRM) Trading 1.2% Higher – Still a Buy?

Shares of Salesforce, Inc. (NYSE:CRM) were up 1.2% on Friday . The stock traded as high as $349.50 and last traded at $347.63. Approximately 1,123,930 shares were traded during mid-day trading, a decline of 81% from the average daily volume of 6,072,712 shares. The stock had previously closed at $343.57.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. Piper Sandler restated an “overweight” rating and issued a $405.00 price objective on shares of Salesforce in a report on Wednesday, December 18th. Citigroup upped their price target on shares of Salesforce from $368.00 to $390.00 and gave the stock a “neutral” rating in a research report on Wednesday, December 4th. Jefferies Financial Group lifted their price objective on shares of Salesforce from $400.00 to $425.00 and gave the company a “buy” rating in a report on Wednesday, December 4th. Bank of America increased their target price on Salesforce from $390.00 to $440.00 and gave the company a “buy” rating in a research report on Wednesday, December 4th. Finally, Loop Capital boosted their target price on shares of Salesforce from $340.00 to $360.00 and gave the stock a “hold” rating in a report on Wednesday, December 4th. One research analyst has rated the stock with a sell rating, six have issued a hold rating, thirty-one have given a buy rating and four have issued a strong buy rating to the stock. According to data from MarketBeat, Salesforce presently has an average rating of “Moderate Buy” and an average price target of $377.63.

Salesforce Stock Performance

The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.14. The company has a market cap of $327.84 billion, a PE ratio of 56.15, a price-to-earnings-growth ratio of 3.20 and a beta of 1.30. The firm’s fifty day moving average is $338.68 and its 200 day moving average is $296.75.

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

Salesforce Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 9th. Shareholders of record on Wednesday, December 18th were paid a dividend of $0.40 per share. The ex-dividend date was Wednesday, December 18th. This represents a $1.60 annualized dividend and a yield of 0.47%. Salesforce’s dividend payout ratio (DPR) is presently 26.32%.

Insider Activity

In other news, insider Parker Harris sold 3,970 shares of the stock in a transaction on Tuesday, November 5th. The stock was sold at an average price of $296.74, for a total value of $1,178,057.80. Following the sale, the insider now directly owns 119,402 shares in the company, valued at approximately $35,431,349.48. This trade represents a 3.22 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Brian Millham sold 708 shares of the business’s stock in a transaction on Thursday, January 23rd. The stock was sold at an average price of $332.28, for a total value of $235,254.24. Following the transaction, the chief operating officer now directly owns 1,239 shares of the company’s stock, valued at $411,694.92. The trade was a 36.36 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,108,669 shares of company stock worth $383,286,905 over the last three months. Insiders own 3.20% of the company’s stock.

Institutional Investors Weigh In On Salesforce

A number of large investors have recently modified their holdings of CRM. Veritas Asset Management LLP purchased a new stake in Salesforce in the third quarter valued at $733,805,000. Jennison Associates LLC grew its stake in Salesforce by 52.7% during the 4th quarter. Jennison Associates LLC now owns 4,433,785 shares of the CRM provider’s stock worth $1,482,347,000 after buying an additional 1,530,572 shares during the last quarter. Swedbank AB increased its position in Salesforce by 46.7% during the fourth quarter. Swedbank AB now owns 3,829,773 shares of the CRM provider’s stock worth $1,280,408,000 after buying an additional 1,219,254 shares during the period. KBC Group NV lifted its stake in Salesforce by 171.2% in the third quarter. KBC Group NV now owns 1,634,834 shares of the CRM provider’s stock valued at $447,470,000 after buying an additional 1,032,068 shares during the last quarter. Finally, International Assets Investment Management LLC increased its holdings in shares of Salesforce by 23,664.2% in the 3rd quarter. International Assets Investment Management LLC now owns 1,002,848 shares of the CRM provider’s stock valued at $274,490,000 after acquiring an additional 998,628 shares during the period. 80.43% of the stock is owned by hedge funds and other 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.