Prime Capital Investment Advisors LLC Lowers Stake in Salesforce Inc. $CRM

Key Points

• Prime Capital Investment Advisors LLC cut its stake in Salesforce by 13.7% in Q4 to 47,135 shares (about $12.49M), while hedge funds and other institutional investors own roughly 80.43% of the company.
• Salesforce beat Q4 estimates with EPS of $3.81 (vs. $3.05 consensus) and revenue of $11.20B (up 12.1% YoY), and set FY2027 guidance of 13.110–13.190 EPS and Q1 guidance of 3.110–3.130 EPS.
• The board authorized a $25 billion share buyback (up to 14.1% of shares) and raised the quarterly dividend to $0.44, while analysts maintain a consensus rating of "Moderate Buy" with a $280.21 price target.

Prime Capital Investment Advisors LLC lowered its position in shares of Salesforce Inc. (NYSE:CRM - Free Report) by 13.7% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 47,135 shares of the CRM provider's stock after selling 7,457 shares during the quarter. Prime Capital Investment Advisors LLC's holdings in Salesforce were worth $12,487,000 as of its most recent SEC filing.

Several other large investors have also added to or reduced their stakes in CRM. Brighton Jones LLC lifted its holdings in Salesforce by 13.7% during the fourth quarter. Brighton Jones LLC now owns 25,668 shares of the CRM provider's stock valued at $8,582,000 after purchasing an additional 3,102 shares in the last quarter. Revolve Wealth Partners LLC lifted its holdings in Salesforce by 12.6% during 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 in the last quarter. Bison Wealth LLC lifted its holdings in Salesforce by 9.0% during the fourth quarter. Bison Wealth LLC now owns 2,234 shares of the CRM provider's stock valued at $747,000 after purchasing an additional 184 shares in the last quarter. Sivia Capital Partners LLC lifted its holdings in Salesforce by 3.7% during the second quarter. Sivia Capital Partners LLC now owns 2,958 shares of the CRM provider's stock valued at $807,000 after purchasing an additional 106 shares in the last quarter. Finally, United Bank lifted its holdings in Salesforce by 5.2% during the second quarter. United Bank now owns 10,198 shares of the CRM provider's stock valued at $2,781,000 after purchasing an additional 500 shares in the last quarter. Hedge funds and other institutional investors own 80.43% of the company's stock.

Salesforce Price Performance

Salesforce stock opened at $176.18 on Thursday. The company has a market cap of $162.62 billion, a price-to-earnings ratio of 22.56, a PEG ratio of 1.36 and a beta of 1.29. The firm's fifty day moving average is $191.71 and its 200 day moving average is $227.44. The company has a quick ratio of 0.76, a current ratio of 0.76 and a debt-to-equity ratio of 0.18. Salesforce Inc. has a 52-week low of $174.57 and a 52-week high of $296.05.

Salesforce (NYSE:CRM - Get Free Report) last released its quarterly earnings results on Wednesday, February 25th. The CRM provider reported $3.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.05 by $0.76. The company had revenue of $11.20 billion for the quarter, compared to the consensus estimate of $11.18 billion. Salesforce had a net margin of 17.96% and a return on equity of 15.38%. Salesforce's revenue was up 12.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.78 earnings per share. Salesforce has set its FY 2027 guidance at 13.110-13.190 EPS and its Q1 2027 guidance at 3.110-3.130 EPS. Sell-side analysts forecast that Salesforce Inc. will post 7.46 EPS for the current fiscal year.

Salesforce declared that its board has authorized a share buyback plan on Monday, March 16th that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the CRM provider to buy up to 14.1% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's leadership believes its stock is undervalued.

Salesforce Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, April 23rd. Investors of record on Thursday, April 9th will be paid a dividend of $0.44 per share. The ex-dividend date of this dividend is Thursday, April 9th. This is a positive change from Salesforce's previous quarterly dividend of $0.42. This represents a $1.76 dividend on an annualized basis and a yield of 1.0%. Salesforce's payout ratio is currently 21.25%.

Insider Activity at Salesforce

In other Salesforce news, Director David Blair Kirk purchased 2,570 shares of the firm's stock in a transaction that occurred on Wednesday, March 18th. The shares were 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 in the company, valued at $2,664,153.18. This trade represents a 23.11% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Neelie Kroes sold 3,893 shares of the company's stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $238.70, for a total transaction of $929,259.10. Following the sale, the director directly owned 7,299 shares in the company, valued at approximately $1,742,271.30. The trade was a 34.78% decrease in their position. The SEC filing for this sale provides additional information. 3.00% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on CRM. KeyCorp lowered their price target on shares of Salesforce from $400.00 to $300.00 and set an "overweight" rating on the stock in a report on Tuesday, February 24th. Sanford C. Bernstein lowered their target price on shares of Salesforce from $223.00 to $194.00 and set an "underperform" rating on the stock in a report on Thursday, February 26th. Oppenheimer lowered their target price on shares of Salesforce from $275.00 to $250.00 and set an "outperform" rating on the stock in a report on Thursday, February 26th. Cantor Fitzgerald reissued an "overweight" rating on shares of Salesforce in a report on Thursday, February 26th. Finally, Wedbush reissued an "outperform" rating and issued a $375.00 target price on shares of Salesforce in a report on Tuesday, February 24th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Salesforce currently has a consensus rating of "Moderate Buy" and a consensus price target of $280.21.

About Salesforce

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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