Traders Purchase High Volume of Salesforce Put Options (NYSE:CRM)

Salesforce Inc. (NYSE:CRM - Get Free Report) was the recipient of unusually large options trading activity on Wednesday. Stock traders purchased 83,956 put options on the stock. This represents an increase of approximately 85% compared to the typical volume of 45,458 put options.

Salesforce Trading Down 1.4%

Shares of CRM stock traded down $3.78 on Thursday, hitting $258.98. 7,623,720 shares of the company's stock traded hands, compared to its average volume of 6,535,521. The stock has a market capitalization of $247.59 billion, a price-to-earnings ratio of 40.53, a P/E/G ratio of 2.35 and a beta of 1.38. The company's fifty day simple moving average is $268.31 and its 200 day simple moving average is $298.72. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.07 and a current ratio of 1.07. Salesforce has a one year low of $230.00 and a one year high of $369.00.

Salesforce (NYSE:CRM - Get Free Report) last posted its quarterly earnings results on Wednesday, May 28th. The CRM provider reported $2.58 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 analyst estimates of $9.74 billion. During the same period in the prior year, the business posted $2.44 EPS. The firm's revenue was up 7.6% compared to the same quarter last year. Equities analysts forecast that Salesforce will post 7.46 EPS for the current year.

Salesforce Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 10th. Stockholders of record on Wednesday, June 18th will be given a $0.416 dividend. The ex-dividend date is Wednesday, June 18th. This represents a $1.66 dividend on an annualized basis and a dividend yield of 0.64%. Salesforce's dividend payout ratio is currently 25.98%.

Wall Street Analyst Weigh In

CRM has been the subject of a number of recent research reports. UBS Group set a $404.00 price target on shares of Salesforce and gave the company an "overweight" rating in a research note on Wednesday. The Goldman Sachs Group raised their price target on shares of Salesforce from $340.00 to $385.00 and gave the company a "buy" rating in a research report on Thursday, May 29th. Westpark Capital reissued a "buy" rating and set a $320.00 price objective on shares of Salesforce in a report on Wednesday, May 28th. Citigroup lowered their price target on Salesforce from $320.00 to $295.00 and set a "neutral" rating for the company in a research report on Friday, May 30th. Finally, Cantor Fitzgerald initiated coverage on Salesforce in a research note on Tuesday, June 3rd. They set an "overweight" rating and a $325.00 price objective on the stock. Two analysts have rated the stock with a sell rating, eight have issued a hold rating, twenty-eight have assigned a buy rating and four have issued a strong buy rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $349.08.

Insiders Place Their Bets

In related news, insider Miguel Milano sold 705 shares of the business's stock in a transaction on Friday, May 23rd. The shares were sold at an average price of $279.44, for a total transaction of $197,005.20. Following the transaction, the insider now owns 9,323 shares in the company, valued at $2,605,219.12. The trade was a 7.03% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Parker Harris sold 3,273 shares of the firm's stock in a transaction dated Monday, March 24th. The shares were sold at an average price of $284.58, for a total value of $931,430.34. Following the completion of the sale, the insider now owns 125,146 shares of the company's stock, valued at approximately $35,614,048.68. This represents a 2.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 34,111 shares of company stock worth $9,299,283. 3.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of CRM. Bernard Wealth Management Corp. bought a new position in Salesforce in the fourth quarter worth approximately $25,000. Accredited Wealth Management LLC purchased a new position in Salesforce during the 4th quarter valued at approximately $27,000. Capital A Wealth Management LLC increased its position in Salesforce by 450.0% in the first quarter. Capital A Wealth Management LLC now owns 110 shares of the CRM provider's stock worth $30,000 after purchasing an additional 90 shares during the last quarter. CBIZ Investment Advisory Services LLC grew its position in Salesforce by 314.8% in the first quarter. CBIZ Investment Advisory Services LLC now owns 112 shares of the CRM provider's stock worth $30,000 after acquiring an additional 85 shares in the last quarter. Finally, Abound Financial LLC purchased a new position in shares of Salesforce in the 1st quarter worth approximately $31,000. 80.43% of the stock is owned by hedge funds and other institutional investors.

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.