Salesforce (NYSE:CRM) Reaches New 12-Month Low - What's Next?

Key Points

• Salesforce shares hit a new 52-week low, falling as low as $146.32 amid a recent losing streak and weak sentiment around the stock. Investors are increasingly worried that AI competition could pressure SaaS pricing and margins.
• Despite the selloff, some analysts remain upbeat: Needham reiterated a Buy rating with a $400 price target, and MarketBeat shows a consensus rating of Moderate Buy with a $257.61 price target.
• Salesforce is still pushing its AI strategy, highlighted by a new partnership with the Visa Cash App Racing Bulls F1 team using Agentforce 360. The company also reported strong quarterly results recently, beating earnings and revenue estimates, while continuing share buybacks and paying a dividend.

Salesforce Inc. (NYSE:CRM - Get Free Report) shares hit a new 52-week low during trading on Tuesday . The company traded as low as $146.32 and last traded at $150.1690, with a volume of 20468475 shares trading hands. The stock had previously closed at $151.78.

Trending Headlines about Salesforce

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce announced a new partnership with the Visa Cash App Racing Bulls Formula 1 team, which will use Agentforce 360 to improve fan engagement, hospitality, and race-day operations. The deal highlights continued momentum for Salesforce’s AI platform. Article: VCARB Partners with Salesforce to Supercharge Fan Engagement with AI, Deploying Agentforce 360
• Neutral Sentiment: Needham reiterated a Buy rating and a $400 price target, suggesting some Wall Street analysts still see significant upside if Salesforce’s AI strategy gains traction. Article: Needham Maintains Buy Rating on Salesforce (CRM) Stock
• Negative Sentiment: Salesforce extended its slide amid a record losing streak and broad investor concern that AI could pressure software-as-a-service pricing and margins. The stock was also described as hitting a 52-week low, underscoring weak sentiment. Article: Salesforce stock hits 52-week low amid record losing streak and AI fears
• Negative Sentiment: Reports that a breach at Klue exposed Salesforce data through stolen OAuth tokens may add to concerns about data security and platform trust. Article: Klue breach exposed Salesforce CRM data through stolen OAuth tokens
• Negative Sentiment: Commentary around Salesforce’s $3.6 billion acquisition of Fin and a “buy the dip” debate reflects ongoing uncertainty about whether aggressive AI investment will translate into faster growth soon enough to justify the stock’s decline. Article: Salesforce (CRM) Is Spending $3.6 Billion To Grow Agentforce And Reach More Customers

Analyst Upgrades and Downgrades

CRM has been the topic of several research analyst reports. Scotiabank lowered Salesforce from a "sector outperform" rating to a "sector perform" rating in a research note on Thursday. Wolfe Research reissued an "outperform" rating on shares of Salesforce in a report on Monday, June 15th. Wells Fargo & Company dropped their price target on Salesforce from $210.00 to $200.00 and set an "equal weight" rating on the stock in a research note on Thursday, May 28th. BMO Capital Markets reduced their price objective on shares of Salesforce from $225.00 to $215.00 and set an "outperform" rating for the company in a research report on Thursday, May 28th. Finally, Northland Securities decreased their price objective on shares of Salesforce from $267.00 to $229.00 and set a "market perform" rating on the stock in a report on Tuesday, March 10th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, eleven have assigned a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat, Salesforce presently has a consensus rating of "Moderate Buy" and a consensus price target of $257.61.

Salesforce Price Performance

The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.15. The company has a 50 day moving average of $177.01 and a 200-day moving average of $203.55. The firm has a market capitalization of $122.99 billion, a P/E ratio of 17.38, a P/E/G ratio of 0.94 and a beta of 1.16.

Salesforce (NYSE:CRM - Get Free Report) last posted its quarterly earnings data on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share for the quarter, topping the consensus estimate of $3.13 by $0.75. The firm had revenue of $11.13 billion for the quarter, compared to analysts' expectations of $11.05 billion. Salesforce had a return on equity of 18.72% and a net margin of 18.73%.The company's quarterly revenue was up 13.3% compared to the same quarter last year. During the same quarter last year, the business earned $2.58 EPS. Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS. On average, sell-side analysts predict that Salesforce Inc. will post 10.29 EPS for the current year.

Salesforce Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th will be issued a $0.44 dividend. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $1.76 dividend on an annualized basis and a yield of 1.2%. Salesforce's payout ratio is currently 20.37%.

Salesforce announced that its board has initiated a share buyback plan on Monday, March 16th that allows the company to repurchase $25.00 billion in shares. This repurchase authorization allows the CRM provider to buy up to 14.1% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Institutional Investors Weigh In On Salesforce

A number of large investors have recently added to or reduced their stakes in CRM. Commonwealth Retirement Investments LLC acquired a new position in Salesforce in the fourth quarter valued at about $25,000. Board of the Pension Protection Fund acquired a new stake in shares of Salesforce during the 4th quarter worth approximately $26,000. Key Capital Management INC bought a new position in Salesforce in the fourth quarter valued at approximately $26,000. Gilpin Wealth Management LLC acquired a new position in Salesforce during the fourth quarter valued at approximately $26,000. Finally, Legacy Bridge LLC acquired a new position in Salesforce during the fourth quarter valued at approximately $27,000. Institutional investors and hedge funds own 80.43% of the company's stock.

About Salesforce

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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