Salesforce (NYSE:CRM) Sets New 52-Week Low - Here's Why

Key Points

• Salesforce shares hit a new 52-week low, trading as low as $163.31 intraday and closing well below the previous day’s $170.92 level.
• Despite the weak stock performance, the company recently reported better-than-expected quarterly results, with EPS of $3.88 versus $3.13 expected and revenue of $11.13 billion topping estimates.
• Analysts remain broadly positive overall, with a consensus “Moderate Buy” rating and an average price target of $259.26, even though some firms have trimmed their targets.

Salesforce Inc. (NYSE:CRM - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $163.31 and last traded at $164.4940, with a volume of 4499182 shares traded. The stock had previously closed at $170.92.

Analyst Ratings Changes

A number of brokerages recently issued reports on CRM. HSBC lifted their price target on shares of Salesforce from $350.00 to $356.00 and gave the stock a "buy" rating in a research note on Friday, May 29th. Citizens Jmp restated a "market outperform" rating and issued a $315.00 price target on shares of Salesforce in a research note on Thursday, May 28th. Macquarie Infrastructure dropped their price target on shares of Salesforce from $200.00 to $190.00 and set a "neutral" rating for the company in a research note on Thursday, May 28th. Canaccord Genuity Group dropped their price target on shares of Salesforce from $250.00 to $225.00 and set a "buy" rating for the company in a research note on Thursday, May 28th. Finally, Truist Financial set a $280.00 price target on shares of Salesforce in a research note on Thursday, February 26th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $259.26.

Salesforce Trading Down 2.5%

The stock has a market cap of $136.48 billion, a price-to-earnings ratio of 19.30, a P/E/G ratio of 1.09 and a beta of 1.16. The business's fifty day simple moving average is $180.90 and its 200 day simple moving average is $207.60. 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 released its quarterly earnings data on Wednesday, May 27th. The CRM provider reported $3.88 EPS for the quarter, topping analysts' consensus estimates of $3.13 by $0.75. The firm had revenue of $11.13 billion during the quarter, compared to the consensus estimate of $11.05 billion. Salesforce had a net margin of 18.73% and a return on equity of 18.72%. The firm's revenue was up 13.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.58 earnings per share. 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, research analysts predict that Salesforce Inc. will post 10.3 EPS for the current year.

Salesforce Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th will be issued a dividend of $0.44 per share. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $1.76 annualized dividend and a dividend yield of 1.1%. Salesforce's payout ratio is 20.37%.

Salesforce declared that its Board of Directors has initiated a stock repurchase plan on Monday, March 16th that permits the company to buyback $25.00 billion in shares. This buyback authorization permits the CRM provider to buy up to 14.1% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's board believes its stock is undervalued.

Insider Buying and Selling at Salesforce

In other news, Director Laura Alber purchased 2,571 shares of Salesforce stock in a transaction dated Thursday, March 19th. The stock was bought at an average price of $194.58 per share, with a total value of $500,265.18. Following the completion of the acquisition, the director owned 9,530 shares in the company, valued at $1,854,347.40. The trade was a 36.94% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David Blair Kirk purchased 2,570 shares of Salesforce stock in a transaction dated Wednesday, March 18th. The shares were purchased at an average cost of $194.62 per share, with a total value of $500,173.40. Following the acquisition, the director owned 13,689 shares of the company's stock, valued at approximately $2,664,153.18. This trade represents a 23.11% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 3.50% of the company's stock.

Institutional Investors Weigh In On Salesforce

Institutional investors have recently bought and sold shares of the stock. Commonwealth Retirement Investments LLC acquired a new stake in Salesforce in the fourth quarter worth about $25,000. Board of the Pension Protection Fund acquired a new stake in Salesforce in the fourth quarter worth about $26,000. Key Capital Management INC acquired a new stake in Salesforce in the fourth quarter worth about $26,000. Gilpin Wealth Management LLC acquired a new stake in Salesforce in the fourth quarter worth about $26,000. Finally, Legacy Bridge LLC acquired a new stake in Salesforce in the fourth quarter worth about $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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