Salesforce Inc. (NYSE:CRM) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Salesforce Inc. has received an average recommendation of "Moderate Buy" from 37 brokerages, with 25 buy ratings, 10 holds, and 1 sell rating.
• The company's latest earnings report showed a net margin of 16.87% and a year-over-year revenue increase of 9.8%, beating analyst expectations.
• Salesforce has declared a quarterly dividend of $0.416 per share, reflecting a 0.7% dividend yield, with a payout ratio of approximately 26%.

Salesforce Inc. (NYSE:CRM - Get Free Report) has earned a consensus rating of "Moderate Buy" from the thirty-seven brokerages that are currently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, ten have issued a hold recommendation, twenty-five have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $331.3429.

A number of equities analysts have recently weighed in on CRM shares. Piper Sandler cut their price target on Salesforce from $335.00 to $315.00 and set an "overweight" rating for the company in a report on Thursday. Oppenheimer dropped their price objective on Salesforce from $370.00 to $315.00 and set an "outperform" rating for the company in a research report on Tuesday, August 26th. Morgan Stanley raised their price target on shares of Salesforce from $404.00 to $405.00 and gave the stock an "overweight" rating in a research note on Tuesday. Wells Fargo & Company lowered their price target on shares of Salesforce from $275.00 to $265.00 and set an "equal weight" rating for the company in a report on Thursday. Finally, Bank of America reduced their price objective on shares of Salesforce from $350.00 to $325.00 and set a "buy" rating on the stock in a research note on Tuesday, August 26th.

Insider Activity

In related news, CEO Marc Benioff sold 2,250 shares of the company's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $251.66, for a total value of $566,235.00. Following the completion of the transaction, the chief executive officer directly owned 11,911,571 shares in the company, valued at approximately $2,997,665,957.86. This represents a 0.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders sold a total of 63,827 shares of company stock worth $16,342,398 in the last 90 days. 3.00% of the stock is owned by company insiders.

Institutional Trading of Salesforce

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CRM. Bernard Wealth Management Corp. acquired a new position in Salesforce during the fourth quarter worth approximately $25,000. Painted Porch Advisors LLC grew its stake in shares of Salesforce by 260.0% during the 2nd quarter. Painted Porch Advisors LLC now owns 90 shares of the CRM provider's stock valued at $25,000 after buying an additional 65 shares during the period. Evolution Wealth Management Inc. purchased a new stake in shares of Salesforce during the 2nd quarter valued at $27,000. Capital A Wealth Management LLC increased its holdings in shares of Salesforce by 450.0% during the 1st quarter. Capital A Wealth Management LLC now owns 110 shares of the CRM provider's stock worth $30,000 after buying an additional 90 shares during the last quarter. Finally, CBIZ Investment Advisory Services LLC raised its position in shares of Salesforce by 314.8% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 112 shares of the CRM provider's stock worth $30,000 after buying an additional 85 shares during the period. Hedge funds and other institutional investors own 80.43% of the company's stock.

Salesforce Stock Performance

Shares of CRM opened at $244.32 on Friday. Salesforce has a 12-month low of $226.48 and a 12-month high of $369.00. The stock has a market cap of $233.57 billion, a P/E ratio of 35.51, a PEG ratio of 2.33 and a beta of 1.22. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.14. The company has a 50-day moving average of $256.08 and a two-hundred day moving average of $267.62.

Salesforce (NYSE:CRM - Get Free Report) last issued its quarterly earnings data on Wednesday, September 3rd. The CRM provider reported $2.91 earnings per share for the quarter, topping analysts' consensus estimates of $2.78 by $0.13. Salesforce had a net margin of 16.87% and a return on equity of 13.34%. The business had revenue of $10.24 billion during the quarter, compared to analysts' expectations of $10.14 billion. During the same period last year, the company posted $2.56 EPS. The company's revenue was up 9.8% on a year-over-year basis. Salesforce has set its FY 2026 guidance at 11.330-11.370 EPS. Q3 2026 guidance at 2.840-2.860 EPS. As a group, research analysts predict that Salesforce will post 7.46 EPS for the current fiscal year.

Salesforce Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 9th. Shareholders of record on Wednesday, September 17th will be paid a dividend of $0.416 per share. This represents a $1.66 dividend on an annualized basis and a dividend yield of 0.7%. Salesforce's dividend payout ratio is presently 25.98%.

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.

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