Salesforce Inc. (NYSE:CRM) Stock Position Lifted by Gifford Fong Associates

Key Points

• Gifford Fong Associates has increased its stake in Salesforce Inc. by 138.8%, acquiring an additional 25,000 shares, making Salesforce the 7th largest position in its portfolio.
• Salesforce recently reported earnings per share of $2.58 for the quarter, exceeding estimates, with revenue reaching $9.83 billion, a 7.6% increase compared to the same quarter last year.
• The company declared a quarterly dividend of $0.416, representing an annualized yield of 0.7%, with a payout ratio of 25.98%.

Gifford Fong Associates lifted its position in Salesforce Inc. (NYSE:CRM - Free Report) by 138.8% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 43,009 shares of the CRM provider's stock after buying an additional 25,000 shares during the period. Salesforce makes up about 2.9% of Gifford Fong Associates' portfolio, making the stock its 7th largest position. Gifford Fong Associates' holdings in Salesforce were worth $11,542,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of CRM. Brighton Jones LLC grew its position in 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 last quarter. Revolve Wealth Partners LLC grew its position in Salesforce by 12.6% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,827 shares of the CRM provider's stock worth $611,000 after purchasing an additional 205 shares during the last quarter. Bessemer Group Inc. lifted its stake in Salesforce by 2.9% during the 4th quarter. Bessemer Group Inc. now owns 60,722 shares of the CRM provider's stock valued at $20,302,000 after acquiring an additional 1,715 shares during the period. Texas Capital Bank Wealth Management Services Inc acquired a new stake in Salesforce during the 4th quarter valued at approximately $272,000. Finally, Jaffetilchin Investment Partners LLC lifted its stake in Salesforce by 6.3% during the 4th quarter. Jaffetilchin Investment Partners LLC now owns 4,389 shares of the CRM provider's stock valued at $1,467,000 after acquiring an additional 261 shares during the period. Hedge funds and other institutional investors own 80.43% of the company's stock.

Salesforce Stock Down 0.3%

Shares of NYSE:CRM opened at $240.09 on Friday. The firm's 50 day moving average price is $263.47 and its 200 day moving average price is $279.50. The stock has a market cap of $229.53 billion, a price-to-earnings ratio of 37.57, a price-to-earnings-growth ratio of 2.19 and a beta of 1.37. Salesforce Inc. has a fifty-two week low of $230.00 and a fifty-two week high of $369.00. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.14.

Salesforce (NYSE:CRM - Get Free Report) last issued its earnings results on Wednesday, May 28th. The CRM provider reported $2.58 earnings per share for the quarter, beating the consensus estimate of $2.55 by $0.03. The firm had revenue of $9.83 billion for the quarter, compared to analysts' expectations of $9.74 billion. Salesforce had a net margin of 16.08% and a return on equity of 12.94%. The firm's revenue was up 7.6% compared to the same quarter last year. During the same quarter last year, the company earned $2.44 earnings per share. As a group, equities research analysts predict that Salesforce Inc. will post 7.46 earnings per share for the current fiscal year.

Salesforce Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, July 10th. Shareholders of record on Wednesday, June 18th were paid a $0.416 dividend. This represents a $1.66 annualized dividend and a yield of 0.7%. The ex-dividend date was Wednesday, June 18th. Salesforce's dividend payout ratio is currently 25.98%.

Analyst Upgrades and Downgrades

Several analysts have commented on CRM shares. Mizuho decreased their price objective on shares of Salesforce from $425.00 to $380.00 and set an "outperform" rating for the company in a research note on Thursday, May 15th. Stephens decreased their price objective on shares of Salesforce from $311.00 to $309.00 and set an "equal weight" rating for the company in a research note on Friday, May 30th. Morgan Stanley reiterated an "overweight" rating and issued a $404.00 target price (up from $393.00) on shares of Salesforce in a research note on Thursday, May 29th. Wells Fargo & Company boosted their target price on shares of Salesforce from $255.00 to $275.00 and gave the company an "equal weight" rating in a research note on Thursday, May 29th. Finally, Cantor Fitzgerald cut shares of Salesforce from an "overweight" rating to a "cautious" rating in a research note on Thursday, July 10th. Three investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, twenty-seven have assigned a buy rating and four have given a strong buy rating to the company. According to MarketBeat.com, Salesforce presently has an average rating of "Moderate Buy" and a consensus target price of $348.16.

Insider Activity at Salesforce

In other Salesforce news, CEO Marc Benioff sold 2,250 shares of the stock in a transaction that occurred on Friday, July 11th. The shares were sold at an average price of $259.67, for a total value of $584,257.50. Following the transaction, the chief executive officer directly owned 11,955,566 shares in the company, valued at $3,104,501,823.22. This represents a 0.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Srinivas Tallapragada sold 6,697 shares of the stock in a transaction that occurred on Wednesday, May 14th. The shares were sold at an average price of $295.00, for a total transaction of $1,975,615.00. Following the completion of the transaction, the insider owned 41,422 shares in the company, valued at $12,219,490. This represents a 13.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 46,479 shares of company stock worth $12,457,591 over the last quarter. 3.20% of the stock is currently owned by insiders.

Salesforce Profile

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.

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