Paragon Capital Management Inc. Acquires New Stake in Salesforce Inc. $CRM

Key Points

• Paragon Capital Management opened a new position in Salesforce during the first quarter, buying 5,968 shares worth about $1.114 million.
• Salesforce shares were down about 1.1% and have been trading well below both their 50-day and 200-day moving averages, reflecting recent stock weakness.
• The company posted a strong quarterly beat, with $3.88 EPS versus $3.13 expected and revenue of $11.13 billion, while also authorizing a $25 billion share buyback and announcing a quarterly dividend.

Paragon Capital Management Inc. acquired a new position in shares of Salesforce Inc. (NYSE:CRM - Free Report) in the first quarter, according to the company in its most recent filing with the SEC. The firm acquired 5,968 shares of the CRM provider's stock, valued at approximately $1,114,000.

Other hedge funds also recently modified their holdings of the company. Brighton Jones LLC lifted its stake in shares of Salesforce by 13.7% during the 4th quarter. Brighton Jones LLC now owns 25,668 shares of the CRM provider's stock worth $8,582,000 after purchasing an additional 3,102 shares during the period. Revolve Wealth Partners LLC increased its stake in Salesforce by 12.6% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,827 shares of the CRM provider's stock valued at $611,000 after purchasing an additional 205 shares during the last quarter. Bison Wealth LLC boosted its stake in Salesforce by 9.0% in the 4th quarter. Bison Wealth LLC now owns 2,234 shares of the CRM provider's stock worth $747,000 after buying an additional 184 shares during the last quarter. Sivia Capital Partners LLC boosted its stake in Salesforce by 3.7% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,958 shares of the CRM provider's stock worth $807,000 after buying an additional 106 shares during the last quarter. Finally, United Bank grew its holdings in Salesforce by 5.2% in the 2nd quarter. United Bank now owns 10,198 shares of the CRM provider's stock valued at $2,781,000 after buying an additional 500 shares during the period. 80.43% of the stock is owned by institutional investors and hedge funds.

Salesforce Stock Down 1.1%

Shares of NYSE:CRM opened at $150.17 on Tuesday. The stock has a 50-day simple moving average of $177.01 and a 200-day simple moving average of $203.55. The stock has a market capitalization of $122.99 billion, a P/E ratio of 17.38, a PEG ratio of 0.94 and a beta of 1.16. Salesforce Inc. has a 1 year low of $146.32 and a 1 year high of $276.80. 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 - Get Free Report) last announced its quarterly 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. Salesforce had a net margin of 18.73% and a return on equity of 18.72%. The firm had revenue of $11.13 billion for the quarter, compared to analysts' expectations of $11.05 billion. During the same period in the previous year, the company posted $2.58 earnings per share. Salesforce's revenue was up 13.3% compared to the same quarter last year. 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 forecast that Salesforce Inc. will post 10.29 earnings per share for the current year.

Salesforce declared that its board has approved a share 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 repurchase up to 14.1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's management believes its stock is undervalued.

Salesforce Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th will be paid a $0.44 dividend. The ex-dividend date is Thursday, June 11th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 1.2%. Salesforce's dividend payout ratio (DPR) is 20.37%.

Wall Street Analyst Weigh In

CRM has been the subject of a number of research analyst reports. Daiwa Securities Group dropped their price objective on shares of Salesforce from $295.00 to $280.00 and set a "buy" rating for the company in a research note on Tuesday, June 2nd. Scotiabank cut shares of Salesforce from a "sector outperform" rating to a "sector perform" rating in a research report on Thursday. The Goldman Sachs Group assumed coverage on shares of Salesforce in a report on Thursday. They issued a "neutral" rating for the company. Wedbush reaffirmed an "outperform" rating and set a $325.00 price target on shares of Salesforce in a research note on Thursday, May 28th. Finally, JPMorgan Chase & Co. cut their price target on shares of Salesforce from $365.00 to $320.00 and set an "overweight" rating on the stock in a research note on Thursday, February 26th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, eleven have given a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $257.61.

Key Headlines Impacting Salesforce

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce announced a new partnership with the Visa Cash App Racing Bulls Formula 1 team, which will use Agentforce 360 to improve fan engagement, hospitality, and race-day operations. The deal highlights continued momentum for Salesforce’s AI platform. Article: VCARB Partners with Salesforce to Supercharge Fan Engagement with AI, Deploying Agentforce 360
• Neutral Sentiment: Needham reiterated a Buy rating and a $400 price target, suggesting some Wall Street analysts still see significant upside if Salesforce’s AI strategy gains traction. Article: Needham Maintains Buy Rating on Salesforce (CRM) Stock
• Negative Sentiment: Salesforce extended its slide amid a record losing streak and broad investor concern that AI could pressure software-as-a-service pricing and margins. The stock was also described as hitting a 52-week low, underscoring weak sentiment. Article: Salesforce stock hits 52-week low amid record losing streak and AI fears
• Negative Sentiment: Reports that a breach at Klue exposed Salesforce data through stolen OAuth tokens may add to concerns about data security and platform trust. Article: Klue breach exposed Salesforce CRM data through stolen OAuth tokens
• Negative Sentiment: Commentary around Salesforce’s $3.6 billion acquisition of Fin and a “buy the dip” debate reflects ongoing uncertainty about whether aggressive AI investment will translate into faster growth soon enough to justify the stock’s decline. Article: Salesforce (CRM) Is Spending $3.6 Billion To Grow Agentforce And Reach More Customers

Salesforce 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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