Salesforce (NYSE:CRM) Trading Down 1.1% After Analyst Downgrade

Salesforce, Inc. (NYSE:CRM - Get Free Report)'s share price dropped 1.1% during mid-day trading on Monday after Citigroup lowered their price target on the stock from $320.00 to $295.00. Citigroup currently has a neutral rating on the stock. Salesforce traded as low as $259.14 and last traded at $262.50. Approximately 2,398,584 shares changed hands during mid-day trading, a decline of 64% from the average daily volume of 6,654,100 shares. The stock had previously closed at $265.37.

A number of other research analysts have also weighed in on CRM. Royal Bank of Canada lowered Salesforce from an "outperform" rating to a "sector perform" rating and decreased their price objective for the company from $420.00 to $275.00 in a report on Thursday, May 29th. UBS Group decreased their price objective on Salesforce from $320.00 to $300.00 and set a "neutral" rating on the stock in a report on Tuesday, May 27th. Northland Securities decreased their price objective on Salesforce from $423.00 to $396.00 and set an "outperform" rating on the stock in a report on Thursday, May 29th. Wells Fargo & Company raised their price objective on Salesforce from $255.00 to $275.00 and gave the company an "equal weight" rating in a report on Thursday, May 29th. Finally, The Goldman Sachs Group raised their price objective on Salesforce from $340.00 to $385.00 and gave the company a "buy" rating in a report on Thursday, May 29th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating, twenty-eight have assigned a buy rating and four have issued a strong buy rating to the stock. According to data from MarketBeat, Salesforce currently has a consensus rating of "Moderate Buy" and an average target price of $346.34.

Insider Activity at Salesforce

In other Salesforce news, CFO Amy E. Weaver sold 6,221 shares of the business's stock in a transaction that occurred on Monday, March 17th. The stock was sold at an average price of $277.37, for a total value of $1,725,518.77. Following the completion of the sale, the chief financial officer now owns 46,750 shares in the company, valued at approximately $12,967,047.50. The trade was a 11.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Miguel Milano sold 705 shares of the business's stock in a transaction that occurred on Friday, May 23rd. The shares were sold at an average price of $279.44, for a total value of $197,005.20. Following the completion of the sale, the insider now owns 9,323 shares of the company's stock, valued at approximately $2,605,219.12. This represents a 7.03% decrease in their position. The disclosure for this sale can be found here. Insiders sold 40,332 shares of company stock valued at $11,024,802 over the last three months. 3.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Salesforce

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CRM. Bernard Wealth Management Corp. purchased a new stake in shares of Salesforce during the fourth quarter worth approximately $25,000. Accredited Wealth Management LLC purchased a new stake in shares of Salesforce during the fourth quarter worth approximately $27,000. Arlington Trust Co LLC raised its stake in shares of Salesforce by 85.1% during the fourth quarter. Arlington Trust Co LLC now owns 87 shares of the CRM provider's stock worth $29,000 after purchasing an additional 40 shares during the last quarter. Compass Financial Services Inc purchased a new stake in shares of Salesforce during the fourth quarter worth approximately $30,000. Finally, Asset Planning Inc purchased a new stake in shares of Salesforce during the fourth quarter worth approximately $31,000. Hedge funds and other institutional investors own 80.43% of the company's stock.

Salesforce Price Performance

The company has a debt-to-equity ratio of 0.14, a current ratio of 1.11 and a quick ratio of 1.11. The company has a 50 day moving average price of $266.92 and a 200 day moving average price of $303.86. The firm has a market cap of $254.35 billion, a PE ratio of 43.51, a PEG ratio of 2.58 and a beta of 1.42.

Salesforce (NYSE:CRM - Get Free Report) last released its quarterly earnings data on Wednesday, May 28th. The CRM provider reported $2.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.55 by $0.03. The firm had revenue of $9.83 billion during the quarter, compared to analysts' expectations of $9.74 billion. Salesforce had a return on equity of 12.34% and a net margin of 15.96%. Salesforce's revenue was up 7.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.44 earnings per share. Sell-side analysts expect that Salesforce, Inc. will post 7.46 EPS for the current fiscal year.

Salesforce Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, April 24th. Shareholders of record on Thursday, April 10th were given a $0.42 dividend. This is a boost from Salesforce's previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Thursday, April 10th. This represents a $1.68 annualized dividend and a yield of 0.64%. 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.