Salesforce (NYSE:CRM) Shares Down 1.6% - Here's Why

Key Points

• Salesforce shares fell 1.6% to about $205.74 in mid-day trading, with volume running below the average session level.
• Investors are focused on whether rising adoption of Salesforce’s Agentforce AI agents can accelerate growth ahead of fiscal Q2 2027 earnings; analysts expect roughly 10.6% revenue growth.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $248.72, though resistance near $210 and concerns about slowing growth could amplify the impact of an earnings or guidance miss.

Salesforce Inc. (NYSE:CRM - Get Free Report) shares fell 1.6% during mid-day trading on Tuesday . The company traded as low as $204.76 and last traded at $205.7370. 10,014,362 shares were traded during mid-day trading, a decline of 27% from the average session volume of 13,643,357 shares. The stock had previously closed at $209.06.

Key Headlines Impacting Salesforce

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: AI adoption is the key bullish catalyst. Analysts expect rising use of Salesforce’s Agentforce AI agents and a broader AI ecosystem to support subscription growth in fiscal Q2 2027. The earnings preview calls for approximately 10.6% revenue growth, aided by AI-cloud demand, acquisitions and disciplined spending. CRM's Q2 Earnings Coming Up: Rising Agentforce Adoption to Aid Sales
• Positive Sentiment: Analysts remain constructive. Canaccord Genuity reaffirmed a Buy rating with a $225 target, BTIG maintained Buy with a $255 target, and Citizens JMP reiterated Market Outperform with a $315 target. These targets imply meaningful upside from recent trading levels. Salesforce analyst rating updates
• Positive Sentiment: Share repurchases may support valuation. Commentary highlights Salesforce’s reported $27.5 billion buyback, which reduced the share count and could bolster per-share earnings while providing valuation support. Salesforce Forcing Itself Higher Through Massive Buybacks And AI-Led Growth
• Neutral Sentiment: Earnings are a major near-term test. Investors want evidence that AI agents are translating into accelerating sales rather than merely increasing customer interest. Salesforce’s previous quarter beat expectations, with $11.13 billion in revenue and $3.88 in adjusted earnings per share, raising the bar for the upcoming report. Salesforce faces an earnings test as AI agents reshape its business
• Negative Sentiment: Technical and market risks could limit gains. The stock is testing resistance near $210, while concerns about slower underlying growth and a possible rotation away from technology stocks could make investors less tolerant of an earnings or guidance miss. Salesforce stock hits a crucial resistance ahead of earnings

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on CRM. DA Davidson dropped their target price on Salesforce from $200.00 to $175.00 and set a "neutral" rating for the company in a research report on Thursday, May 28th. Guggenheim restated a "buy" rating and issued a $228.00 price objective on shares of Salesforce in a report on Thursday, August 20th. Susquehanna initiated coverage on shares of Salesforce in a report on Wednesday, July 1st. They set a "neutral" rating on the stock. Deutsche Bank Aktiengesellschaft set a $315.00 price target on shares of Salesforce in a research note on Tuesday. Finally, Citizens Jmp reiterated a "market outperform" rating and issued a $315.00 price objective on shares of Salesforce in a report on Tuesday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, seventeen have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $248.72.

Salesforce Price Performance

The company has a market cap of $168.50 billion, a PE ratio of 23.81, a price-to-earnings-growth ratio of 1.13 and a beta of 1.16. The business has a 50 day moving average of $175.23 and a 200 day moving average of $181.44. The company has a debt-to-equity ratio of 1.15, a current ratio of 0.79 and a quick ratio of 0.79.

Salesforce (NYSE:CRM - Get Free Report) last issued its quarterly earnings data on Wednesday, May 27th. The CRM provider reported $3.88 EPS for the quarter, topping the consensus estimate of $3.13 by $0.75. Salesforce had a net margin of 18.73% and a return on equity of 18.72%. The business had revenue of $11.13 billion during the quarter, compared to analyst estimates of $11.05 billion. During the same period in the prior year, the business earned $2.58 EPS. The company's revenue for the quarter 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 predict that Salesforce Inc. will post 10.27 EPS for the current year.

Salesforce Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th were given a $0.44 dividend. The ex-dividend date of this dividend was Thursday, June 11th. This represents a $1.76 annualized dividend and a dividend yield of 0.9%. Salesforce's dividend payout ratio is currently 20.37%.

Hedge Funds Weigh In On Salesforce

A number of institutional investors have recently added to or reduced their stakes in the company. Commonwealth Retirement Investments LLC purchased a new position in Salesforce during the 4th quarter valued at about $25,000. Gilpin Wealth Management LLC purchased a new position in shares of Salesforce during the fourth quarter valued at approximately $26,000. Birchwood Financial Partners Inc. purchased a new stake in shares of Salesforce in the 4th quarter worth approximately $28,000. Swiss RE Ltd. bought a new position in Salesforce during the 4th quarter valued at approximately $28,000. Finally, Dogwood Wealth Management LLC raised its stake in Salesforce by 285.7% during the fourth quarter. Dogwood Wealth Management LLC now owns 108 shares of the CRM provider's stock valued at $29,000 after buying an additional 80 shares during the last quarter. Institutional investors own 80.43% 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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