1ST Source Bank Makes New Investment in Salesforce Inc. $CRM

Key Points

• 1ST Source Bank purchased 5,277 Salesforce shares during the second quarter, valued at approximately $827,000. Institutional investors collectively own 80.43% of CRM’s outstanding stock.
• Salesforce reported quarterly earnings of $3.88 per share, beating estimates of $3.13, while revenue rose 13.3% year over year to $11.13 billion. The company also pays a quarterly dividend of $0.44 per share, yielding about 0.9% annually.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $249.05, though some investors warn that AI-native competitors could challenge Salesforce’s traditional CRM business.

1ST Source Bank purchased a new stake in shares of Salesforce Inc. (NYSE:CRM - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 5,277 shares of the CRM provider's stock, valued at approximately $827,000.

A number of other hedge funds have also modified their holdings of the company. Fred Alger Management LLC grew its stake in Salesforce by 0.3% during the third quarter. Fred Alger Management LLC now owns 14,943 shares of the CRM provider's stock valued at $3,548,000 after acquiring an additional 45 shares in the last quarter. Richards Merrill & Peterson Inc. raised its holdings in shares of Salesforce by 1.1% during the 4th quarter. Richards Merrill & Peterson Inc. now owns 4,239 shares of the CRM provider's stock worth $1,123,000 after acquiring an additional 46 shares in the last quarter. Mowery & Schoenfeld Wealth Management LLC boosted its position in shares of Salesforce by 6.9% during the 4th quarter. Mowery & Schoenfeld Wealth Management LLC now owns 745 shares of the CRM provider's stock valued at $197,000 after acquiring an additional 48 shares during the last quarter. Synergy Financial Group LTD boosted its position in shares of Salesforce by 2.4% during the 3rd quarter. Synergy Financial Group LTD now owns 2,035 shares of the CRM provider's stock valued at $482,000 after acquiring an additional 48 shares during the last quarter. Finally, Arbor Capital Management Inc. ADV grew its holdings in shares of Salesforce by 1.6% in the fourth quarter. Arbor Capital Management Inc. ADV now owns 3,321 shares of the CRM provider's stock valued at $884,000 after purchasing an additional 51 shares in the last quarter. 80.43% of the stock is currently owned by institutional investors.

Salesforce Stock Performance

Salesforce stock opened at $195.86 on Monday. The company has a 50 day moving average price of $171.41 and a 200-day moving average price of $181.95. 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 Inc. has a fifty-two week low of $146.32 and a fifty-two week high of $269.11. The company has a market capitalization of $160.41 billion, a PE ratio of 22.67, a P/E/G ratio of 1.06 and a beta of 1.16.

Salesforce (NYSE:CRM - Get Free Report) last issued its earnings results on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share for the quarter, beating analysts' consensus estimates of $3.13 by $0.75. The business had revenue of $11.13 billion during the quarter, compared to analyst estimates of $11.05 billion. Salesforce had a return on equity of 18.72% and a net margin of 18.73%.Salesforce's revenue was up 13.3% on a year-over-year basis. During the same period in the previous year, the company posted $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. As a group, equities analysts forecast that Salesforce Inc. will post 10.27 earnings per share for the current year.

Salesforce Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Investors 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 0.9%. The ex-dividend date of this dividend was Thursday, June 11th. Salesforce's dividend payout ratio (DPR) is presently 20.37%.

Analyst Upgrades and Downgrades

CRM has been the subject of several research reports. Monness Crespi & Hardt increased their price objective on shares of Salesforce from $200.00 to $222.00 and gave the company a "buy" rating in a research report on Thursday. Weiss Ratings upgraded Salesforce from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday. Wall Street Zen downgraded shares of Salesforce from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Jefferies Financial Group upgraded shares of Salesforce from a "buy" rating to a "buy" rating in a report on Wednesday, July 1st. Finally, Canaccord Genuity Group reaffirmed a "buy" rating and set a $225.00 price target on shares of Salesforce in a research note on Tuesday, June 16th. Two research analysts have rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, seventeen have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $249.05.

Key Stories Impacting Salesforce

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: JPMorgan resumed coverage with an Overweight rating and a $250 price target, citing potential acceleration in Salesforce’s core business during the second half of the year. The target implies more than 24% upside from recent levels. JPMorgan bullish Salesforce coverage
• Positive Sentiment: Monness Crespi & Hardt raised its Salesforce price target to $222 from $200 and maintained a Buy rating. UBS and Wells Fargo also reportedly forecast strong appreciation, reinforcing improving sell-side sentiment. Monness Crespi Salesforce price target
• Positive Sentiment: Salesforce’s Agentforce platform is gaining traction, giving the company a way to use its large CRM customer base to compete with Microsoft and Oracle in enterprise “agentic” AI. Salesforce agentic AI analysis
• Positive Sentiment: A Seeking Alpha analysis argues that Salesforce’s $27.1 billion share-repurchase program, equivalent to an estimated 23% net buyback yield, could support earnings-per-share growth. The stock also appears inexpensive at roughly 14 times forward earnings, although buybacks have increased debt. Salesforce buyback analysis
• Neutral Sentiment: Salesforce has recently posted strong momentum, with reports noting three consecutive weeks of gains and substantial one-month appreciation. That run may be encouraging investors, but it also raises the possibility of profit-taking.
• Negative Sentiment: Parnassus Investments indicated that Salesforce has lost favor as AI opportunities shift toward competing or substitute technologies. Other commentary likewise warns that alternative software and AI-native tools threaten Salesforce’s traditional CRM franchise. Salesforce AI competition concerns

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.

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