Salesforce (NYSE:CRM) Stock Price Down 2.4% – Should You Sell?

Salesforce Inc. (NYSE:CRM) shares traded down 2.4% on Thursday . The stock traded as low as $156.48 and last traded at $162.6530. Approximately 13,831,991 shares were traded during mid-day trading, a decline of 1% from the average session volume of 13,938,322 shares. The stock had previously closed at $166.58.

More Salesforce News

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce announced a $1 billion investment in Switzerland over five years to expand adoption of agentic AI, reinforcing its commitment to AI-led growth and potentially strengthening its international enterprise relationships.
• Positive Sentiment: A bullish deep-dive argued Salesforce is trading at a depressed valuation, with strong free-cash-flow generation and a large debt-funded buyback that reduced share count by more than 10%, signaling management confidence in the business.
• Neutral Sentiment: Salesforce also unveiled MCP-powered capabilities for Slackbot, which could improve product usefulness and customer engagement, but the market may need proof that these features translate into faster growth.
• Neutral Sentiment: Triveni Power Transmission’s partnership with Salesforce for customer engagement in manufacturing adds another example of industry adoption, though the near-term financial impact appears limited.
• Negative Sentiment: KeyBanc’s downgrade and slightly lower earnings forecast added to investor skepticism that Agentforce will become a major growth catalyst soon.
• Negative Sentiment: Several market commentaries highlighted that CRM has been a weak performer over the past year, and the recent pullback suggests investors remain cautious despite its lower valuation.

Wall Street Analyst Weigh In

CRM has been the subject of a number of recent analyst reports. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $250.00 price target on shares of Salesforce in a research note on Thursday, May 28th. Wolfe Research downgraded shares of Salesforce from an “outperform” rating to a “hold” rating in a research note on Wednesday, July 1st. DA Davidson dropped their target price on Salesforce from $200.00 to $175.00 and set a “neutral” rating for the company in a research report on Thursday, May 28th. Piper Sandler cut Salesforce from an “overweight” rating to a “neutral” rating in a research note on Thursday, May 28th. Finally, Sanford C. Bernstein reduced their price target on Salesforce from $194.00 to $173.00 and set an “underperform” rating on the stock in a report on Thursday, May 28th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, fourteen have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $254.42.

Salesforce Stock Up 0.5%

The business’s fifty day moving average is $171.89 and its two-hundred day moving average is $194.51. The company has a market cap of $133.77 billion, a P/E ratio of 18.90, a price-to-earnings-growth ratio of 1.01 and a beta of 1.18. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.79 and a current ratio of 0.79.

Salesforce (NYSE:CRM) last released its quarterly earnings data on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.13 by $0.75. The company had revenue of $11.13 billion during the quarter, compared to analysts’ expectations of $11.05 billion. Salesforce had a net margin of 18.73% and a return on equity of 18.72%. The firm’s quarterly revenue was up 13.3% on a year-over-year basis. During the same period in the previous year, the company earned $2.58 EPS. Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS. Equities analysts predict that Salesforce Inc. will post 10.29 EPS for the current year.

Salesforce Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th were issued a dividend of $0.44 per share. This represents a $1.76 annualized dividend and a yield of 1.1%. The ex-dividend date was Thursday, June 11th. Salesforce’s dividend payout ratio (DPR) is presently 20.37%.

Salesforce declared that its board has approved a stock repurchase program on Monday, March 16th that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the CRM provider to purchase up to 14.1% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s leadership believes its stock is undervalued.

Hedge Funds Weigh In On Salesforce

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Regent Peak Wealth Advisors LLC lifted its stake in Salesforce by 12.8% in the second quarter. Regent Peak Wealth Advisors LLC now owns 1,383 shares of the CRM provider’s stock worth $217,000 after acquiring an additional 157 shares during the period. Butensky & Cohen Financial Security Inc. bought a new position in Salesforce in the second quarter worth approximately $2,941,000. Tema ETFs LLC raised its position in shares of Salesforce by 10.6% in the 2nd quarter. Tema ETFs LLC now owns 19,635 shares of the CRM provider’s stock worth $3,076,000 after acquiring an additional 1,885 shares in the last quarter. West Branch Capital LLC lifted its stake in shares of Salesforce by 37.4% during the 2nd quarter. West Branch Capital LLC now owns 426 shares of the CRM provider’s stock worth $67,000 after purchasing an additional 116 shares during the last quarter. Finally, Canvas Wealth Advisors LLC bought a new stake in Salesforce during the second quarter valued at about $2,103,000. Institutional investors own 80.43% of the company’s stock.

Salesforce Company Profile

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.