Vanguard Group Inc. Buys 1,383,942 Shares of Salesforce Inc. (NYSE:CRM)

Key Points

• Vanguard Group Inc. has increased its stake in Salesforce Inc. by 1.6% after purchasing 1,383,942 shares, bringing its total holdings to approximately 87.9 million shares.
• Salesforce now comprises about 0.4% of Vanguard's portfolio, with a valuation of $23.59 billion, making it the fund's 28th largest position.
• Despite investor activity, Salesforce shares have recently experienced a 2.1% decline, with analysts maintaining a consensus rating of "Moderate Buy" and a target price of $348.16.

Vanguard Group Inc. grew its stake in shares of Salesforce Inc. (NYSE:CRM - Free Report) by 1.6% in the first quarter, according to its most recent filing with the SEC. The fund owned 87,913,628 shares of the CRM provider's stock after acquiring an additional 1,383,942 shares during the period. Salesforce comprises about 0.4% of Vanguard Group Inc.'s portfolio, making the stock its 28th largest holding. Vanguard Group Inc. owned 9.14% of Salesforce worth $23,592,501,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds also recently modified their holdings of CRM. Bernard Wealth Management Corp. acquired a new stake in shares of Salesforce during the 4th quarter valued at $25,000. Accredited Wealth Management LLC acquired a new stake in Salesforce during the 4th quarter valued at $27,000. Capital A Wealth Management LLC raised its stake in Salesforce by 450.0% during the 1st quarter. Capital A Wealth Management LLC now owns 110 shares of the CRM provider's stock valued at $30,000 after purchasing an additional 90 shares during the period. CBIZ Investment Advisory Services LLC raised its stake in Salesforce by 314.8% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 112 shares of the CRM provider's stock valued at $30,000 after purchasing an additional 85 shares during the period. Finally, Abound Financial LLC acquired a new stake in Salesforce during the 1st quarter valued at $31,000. Institutional investors and hedge funds own 80.43% of the company's stock.

Salesforce Stock Performance

CRM stock traded down $8.54 during mid-day trading on Thursday, reaching $240.63. 9,997,676 shares of the stock traded hands, compared to its average volume of 5,834,085. 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 Inc. has a 52 week low of $230.00 and a 52 week high of $369.00. The business has a 50-day moving average of $263.97 and a two-hundred day moving average of $280.10. The firm has a market capitalization of $230.04 billion, a PE ratio of 37.66, a P/E/G ratio of 2.26 and a beta of 1.37.

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

Salesforce Cuts Dividend

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

Insider Transactions at Salesforce

In related news, CEO Marc Benioff sold 2,250 shares of the stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $248.40, for a total value of $558,900.00. Following the completion of the sale, the chief executive officer owned 11,911,571 shares in the company, valued at approximately $2,958,834,236.40. This trade represents a 0.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders have sold 46,479 shares of company stock worth $12,457,591 in the last three months. 3.20% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

CRM has been the topic of several recent analyst reports. Canaccord Genuity Group cut their target price on shares of Salesforce from $400.00 to $350.00 and set a "buy" rating on the stock in a research note on Wednesday, May 28th. Erste Group Bank downgraded shares of Salesforce from a "buy" rating to a "hold" rating in a research note on Thursday, June 5th. DA Davidson reissued an "underperform" rating and set a $200.00 target price on shares of Salesforce in a research note on Wednesday, May 28th. JMP Securities reissued a "market outperform" rating and set a $430.00 target price on shares of Salesforce in a research note on Friday, July 11th. Finally, BMO Capital Markets cut their target price on shares of Salesforce from $350.00 to $335.00 and set an "outperform" rating on the stock in a research note on Thursday, July 10th. Three research analysts have rated the stock with a sell rating, eight have issued a hold rating, twenty-seven have given a buy rating and four have given a strong buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $348.16.

Salesforce Company 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.