Salesforce (NYSE:CRM) Trading Down 0.9% – Here’s Why

Shares of Salesforce, Inc. (NYSE:CRM) were down 0.9% during trading on Tuesday . The stock traded as low as $323.92 and last traded at $327.46. Approximately 1,638,237 shares were traded during trading, a decline of 59% from the average daily volume of 3,999,328 shares. The stock had previously closed at $330.53.

Analyst Ratings Changes

CRM has been the topic of a number of analyst reports. UBS Group lifted their price objective on shares of Salesforce from $275.00 to $360.00 and gave the stock a “neutral” rating in a research report on Friday, November 22nd. JMP Securities reiterated a “market outperform” rating and set a $450.00 price objective on shares of Salesforce in a report on Wednesday, December 18th. Citigroup boosted their target price on Salesforce from $368.00 to $390.00 and gave the stock a “neutral” rating in a research note on Wednesday, December 4th. Canaccord Genuity Group increased their price target on Salesforce from $315.00 to $415.00 and gave the company a “buy” rating in a research note on Wednesday, December 4th. Finally, Robert W. Baird boosted their price target on Salesforce from $340.00 to $430.00 and gave the stock an “outperform” rating in a research note on Wednesday, December 4th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, thirty have assigned a buy rating and four have given a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $376.05.

Salesforce Trading Up 0.5 %

The company has a fifty day moving average of $334.65 and a 200-day moving average of $288.26. 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 capitalization of $312.62 billion, a price-to-earnings ratio of 53.73, a PEG ratio of 3.21 and a beta of 1.30.

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

Salesforce Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 9th. Stockholders of record on Wednesday, December 18th will be given a $0.40 dividend. The ex-dividend date is Wednesday, December 18th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.49%. Salesforce’s dividend payout ratio (DPR) is presently 26.32%.

Insider Buying and Selling

In other news, CEO Marc Benioff sold 317,105 shares of the company’s stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $346.78, for a total value of $109,965,671.90. Following the transaction, the chief executive officer now owns 12,162,457 shares of the company’s stock, valued at $4,217,696,838.46. This represents a 2.54 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Sundeep G. Reddy sold 413 shares of the firm’s stock in a transaction dated Wednesday, October 23rd. The stock was sold at an average price of $285.29, for a total value of $117,824.77. Following the sale, the chief accounting officer now directly owns 7,006 shares of the company’s stock, valued at $1,998,741.74. The trade was a 5.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 1,181,817 shares of company stock worth $404,760,429. 3.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of CRM. Michael S. Ryan Inc. acquired a new position in Salesforce during the 4th quarter worth about $226,000. First Hawaiian Bank lifted its position in shares of Salesforce by 16.7% during the fourth quarter. First Hawaiian Bank now owns 13,326 shares of the CRM provider’s stock worth $4,455,000 after purchasing an additional 1,906 shares in the last quarter. Douglas Lane & Associates LLC boosted its stake in shares of Salesforce by 57.5% in the fourth quarter. Douglas Lane & Associates LLC now owns 142,741 shares of the CRM provider’s stock valued at $47,723,000 after purchasing an additional 52,104 shares during the period. Fulton Bank N.A. grew its holdings in shares of Salesforce by 13.7% in the fourth quarter. Fulton Bank N.A. now owns 10,541 shares of the CRM provider’s stock valued at $3,524,000 after purchasing an additional 1,272 shares in the last quarter. Finally, Worth Asset Management LLC purchased a new stake in Salesforce during the 4th quarter worth approximately $2,812,000. Hedge funds and other institutional investors own 80.43% of the company’s stock.

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.