Pincus Capital Management LP Purchases Shares of 5,964 Salesforce Inc. $CRM

Key Points

• Pincus Capital Management LP opened a new stake in Salesforce, buying 5,964 shares worth about $1.58 million, making CRM its 22nd-largest holding and about 1.1% of the portfolio.
• Salesforce reported a strong quarter, with EPS of $3.88 versus estimates of $3.13 and revenue of $11.13 billion, while raising guidance for fiscal 2027 and the next quarter.
• The company is returning capital to shareholders through a $25 billion stock buyback and a quarterly dividend of $0.44 per share, even as analysts remain mixed with a consensus rating of Moderate Buy.

Pincus Capital Management LP purchased a new stake in shares of Salesforce Inc. (NYSE:CRM - Free Report) during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The firm purchased 5,964 shares of the CRM provider's stock, valued at approximately $1,580,000. Salesforce comprises 1.1% of Pincus Capital Management LP's portfolio, making the stock its 22nd largest position.

Other institutional investors and hedge funds have also bought and sold shares of the company. Board of the Pension Protection Fund bought a new position in Salesforce during the fourth quarter valued at approximately $26,000. Key Capital Management INC bought a new position in Salesforce during the fourth quarter valued at approximately $26,000. Legacy Bridge LLC bought a new position in Salesforce during the fourth quarter valued at approximately $27,000. Texas Capital Bancshares Inc TX bought a new position in shares of Salesforce in the third quarter worth approximately $28,000. Finally, Dogwood Wealth Management LLC grew its holdings in shares of Salesforce by 285.7% in the fourth quarter. Dogwood Wealth Management LLC now owns 108 shares of the CRM provider's stock worth $29,000 after purchasing an additional 80 shares during the last quarter. 80.43% of the stock is currently owned by institutional investors.

Salesforce Stock Performance

Shares of CRM stock opened at $209.33 on Tuesday. The stock has a fifty day moving average of $181.06 and a 200 day moving average of $210.11. Salesforce Inc. has a 52 week low of $163.52 and a 52 week high of $276.80. The firm has a market capitalization of $171.44 billion, a price-to-earnings ratio of 24.23, a PEG ratio of 1.27 and a beta of 1.16. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.15.

Salesforce (NYSE:CRM - Get Free Report) last announced its quarterly earnings results on Wednesday, May 27th. The CRM provider reported $3.88 EPS for the quarter, topping analysts' consensus estimates of $3.13 by $0.75. Salesforce had a return on equity of 18.72% and a net margin of 18.73%.The company had revenue of $11.13 billion during the quarter, compared to analyst estimates of $11.05 billion. During the same quarter last year, the firm posted $2.58 earnings per share. The firm's revenue was up 13.3% on a year-over-year basis. 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, research analysts expect that Salesforce Inc. will post 9.72 earnings per share for the current year.

Salesforce Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Thursday, June 11th will be paid a $0.44 dividend. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $1.76 dividend on an annualized basis and a yield of 0.8%. Salesforce's dividend payout ratio (DPR) is presently 20.37%.

Salesforce declared that its Board of Directors has approved a stock repurchase plan on Monday, March 16th that permits the company to buyback $25.00 billion in shares. This buyback authorization permits the CRM provider to reacquire up to 14.1% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

CRM has been the topic of several recent analyst reports. Morgan Stanley cut their target price on shares of Salesforce from $398.00 to $287.00 and set an "overweight" rating on the stock in a report on Monday, February 23rd. JPMorgan Chase & Co. cut their target price on shares of Salesforce from $365.00 to $320.00 and set an "overweight" rating on the stock in a report on Thursday, February 26th. Mizuho cut their target price on shares of Salesforce from $280.00 to $265.00 and set an "outperform" rating on the stock in a report on Thursday, February 26th. DA Davidson cut their target price on shares of Salesforce from $200.00 to $175.00 and set a "neutral" rating on the stock in a report on Thursday, May 28th. Finally, Sanford C. Bernstein cut their target price on shares of 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-five have issued a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $257.97.

Salesforce News Roundup

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce is benefiting from a broader rebound in software stocks after Nvidia CEO Jensen Huang eased fears that AI will disrupt the software industry, giving CRM and peers a fresh tailwind. NOW, IBM, software stocks surge as Huang eases AI fears; analysts see more upside
• Positive Sentiment: Investors are also focused on Salesforce’s expanding AI strategy, including a reported Contentful acquisition and continued rollout of Agentforce and related enterprise AI tools, which reinforces the company’s growth narrative. CRM Stock Jumps Amid Software Rally — Company Expands AI Push With Contentful Acquisition
• Positive Sentiment: Recent earnings remain a key support for the stock: Salesforce beat on both EPS and revenue, posted strong year-over-year growth, and delivered solid cash flow, helping sustain investor confidence despite broader market volatility. Salesforce, Inc. (CRM) Beats on Earnings and Revenue
• Neutral Sentiment: Salesforce continues to attract heavy investor attention online, reflecting elevated interest in the stock, but the article did not add new fundamental information likely to move shares. Investors Heavily Search Salesforce, Inc. (CRM): Here is What You Need to Know
• Neutral Sentiment: A Zacks review of Salesforce’s international revenue exposure is mainly a reminder that a meaningful portion of sales comes from overseas markets, which can affect stability and growth, but it was not a fresh catalyst. Salesforce (CRM) Reliance on International Sales: What Investors Need to Know
• Negative Sentiment: Some commentary continues to question whether Salesforce can thrive in an AI-dominated software landscape, and BMO trimmed its price target after earnings, which suggests some caution remains around valuation and future upside. Is Salesforce (CRM) the Best Undervalued Stock to Buy According to the Financial Media?

Insiders Place Their Bets

In other Salesforce news, Director David Blair Kirk purchased 2,570 shares of the company's stock in a transaction that occurred on Wednesday, March 18th. The stock was bought at an average price of $194.62 per share, with a total value of $500,173.40. Following the completion of the purchase, the director directly owned 13,689 shares of the company's stock, valued at $2,664,153.18. The trade was a 23.11% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Laura Alber acquired 2,571 shares of the stock in a transaction on Thursday, March 19th. The shares were purchased at an average cost of $194.58 per share, with a total value of $500,265.18. Following the transaction, the director directly owned 9,530 shares of the company's stock, valued at approximately $1,854,347.40. This trade represents a 36.94% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 3.50% 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.

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