Salesforce (NYSE:CRM) Stock Falls 1% - Here's What Happened

Key Points

• Salesforce shares fell 1% as investors reacted to broader weakness in software stocks, particularly concerns about slower contracted-revenue growth and the pace of AI monetization despite earnings beats.
• Salesforce agreed to acquire defense-technology company Rune Technologies for undisclosed terms, supporting its expansion into military and government applications.
• Upcoming earnings are a key catalyst, with investors focused on revenue growth, AI adoption, margins and guidance. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $278.98, above the reported share price.

Salesforce Inc. (NYSE:CRM - Get Free Report) shares dropped 1% during mid-day trading on Friday. The company traded as low as $227.68 and last traded at $228.56. Approximately 7,811,125 shares traded hands during mid-day trading, a decline of 41% from the average daily volume of 13,244,579 shares. The stock had previously closed at $230.90.

Key Stories Impacting Salesforce

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce signed a definitive agreement to acquire Rune Technologies, a defense-technology company. The deal supports Salesforce’s push into military and government applications, potentially expanding its addressable market and adding a specialized technology platform. Financial terms were not disclosed. Salesforce Signs Definitive Agreement to Acquire Rune Technologies
• Positive Sentiment: TPM Holdings completed an 18-month realignment centered on Salesforce CRM and artificial intelligence for the architecture, engineering and construction industries. Its combination of TrebleHook and The Hunley Group could expand Salesforce-based implementations and demonstrate growing demand for industry-specific AI tools. TPM Holdings Accelerates Investment in AI and Salesforce CRM
• Positive Sentiment: Several analyst and investment articles describe Salesforce as a potential AI rebound candidate, citing autonomous AI agents, improving monetization, strong free cash flow and its leadership in customer relationship management. These views may support longer-term sentiment, although they are not new company guidance. AI Comeback Story Article
• Neutral Sentiment: Salesforce’s earnings report is approaching, making upcoming revenue growth, AI adoption, margins and forward guidance the main near-term catalysts. The company’s latest reported quarter included revenue of $11.35 billion and adjusted earnings that exceeded consensus estimates. Salesforce Earnings Preview
• Negative Sentiment: Salesforce declined in sympathy with ServiceNow, Fortinet and other software stocks after investors focused on slower contracted-revenue growth despite earnings beats and higher AI targets. The reaction has renewed concerns about enterprise-software demand, AI monetization timelines and elevated sector valuations. ServiceNow Results Dent Software Stocks

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. Freedom Broker upped their price objective on shares of Salesforce from $230.00 to $295.00 and gave the stock a "buy" rating in a report on Thursday, September 17th. Jefferies Financial Group reaffirmed a "buy" rating on shares of Salesforce in a research report on Tuesday, October 20th. Wall Street Zen downgraded Salesforce from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Yorkville Ives initiated coverage on Salesforce in a report on Monday, October 5th. They set an "outperform" rating and a $290.00 price objective for the company. Finally, UBS Group reissued a "buy" rating on shares of Salesforce in a research note on Friday, September 11th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, thirteen have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $278.98.

Salesforce Stock Down 1.0%

The stock's 50-day moving average price is $238.48 and its two-hundred day moving average price is $199.04. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 1.02. The stock has a market capitalization of $188.10 billion, a P/E ratio of 20.84, a P/E/G ratio of 1.10 and a beta of 1.26.

Salesforce (NYSE:CRM - Get Free Report) last released its earnings results on Wednesday, August 26th. The CRM provider reported $5.90 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.27 by $2.63. The business had revenue of $11.35 billion during the quarter, compared to the consensus estimate of $11.33 billion. Salesforce had a return on equity of 24.90% and a net margin of 21.99%. The business's revenue for the quarter was up 10.8% on a year-over-year basis. During the same period last year, the business posted $2.91 earnings per share. Salesforce has set its FY 2027 guidance at 16.670-16.710 EPS and its Q3 2027 guidance at 3.420-3.440 EPS. As a group, research analysts expect that Salesforce Inc. will post 12.82 earnings per share for the current fiscal year.

Salesforce Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 8th. Stockholders of record on Thursday, September 17th were paid a $0.44 dividend. The ex-dividend date of this dividend was Thursday, September 17th. This represents a $1.76 annualized dividend and a dividend yield of 0.8%. Salesforce's dividend payout ratio (DPR) is 16.04%.

Insider Transactions at Salesforce

In other Salesforce news, Director David Blair Kirk purchased 4,176 shares of the business's stock in a transaction on Friday, September 18th. The stock was acquired at an average price of $239.33 per share, for a total transaction of $999,442.08. Following the purchase, the director owned 18,748 shares of the company's stock, valued at approximately $4,486,958.84. This represents a 28.66% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Craig Conway sold 4,500 shares of the company's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $260.61, for a total value of $1,172,745.00. Following the completion of the transaction, the director directly owned 5,437 shares of the company's stock, valued at approximately $1,416,936.57. This trade represents a 45.29% decrease in their position. The disclosure for this sale is available in the SEC filing. 3.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Salesforce

Several institutional investors have recently bought and sold shares of CRM. Fluent Financial LLC purchased a new stake in shares of Salesforce in the second quarter valued at $2,265,000. TAM Capital Management Inc. acquired a new position in shares of Salesforce during the 1st quarter valued at about $40,945,000. Secured Retirement Advisors LLC acquired a new position in shares of Salesforce during the 1st quarter valued at about $1,004,000. Janus Henderson Group PLC lifted its holdings in shares of Salesforce by 2.5% during the 1st quarter. Janus Henderson Group PLC now owns 127,739 shares of the CRM provider's stock worth $23,846,000 after acquiring an additional 3,125 shares during the period. Finally, Anchor Investment Management LLC boosted its position in shares of Salesforce by 184.5% in the second quarter. Anchor Investment Management LLC now owns 17,983 shares of the CRM provider's stock worth $2,817,000 after acquiring an additional 11,663 shares during the last quarter. Institutional investors own 80.43% of the company's stock.

About Salesforce

Salesforce, Inc NYSE: CRM is a global enterprise software company that provides cloud-based customer relationship management (CRM) technology. Its platform helps organizations manage sales, customer service, marketing, commerce, data, analytics and interactions with customers across digital and traditional channels.

The company's products include Sales Cloud, Service Cloud, Marketing Cloud, Commerce Cloud and Data Cloud. Salesforce also offers Tableau for data visualization and analytics, MuleSoft for application integration, and Slack for workplace collaboration.

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