Salesforce (NYSE:CRM) Shares Down 2.5% Following Insider Selling

Key Points

• Salesforce's shares fell by 2.5% following insider sales by CEO Marc Benioff, who sold a total of 6,750 shares in three separate transactions this month.
• Equities analysts have mixed forecasts, with some maintaining a "buy" rating while others cut their target prices, reflecting a prevailing average price target of $325.23 for the stock.
• Salesforce also announced a quarterly dividend of $0.416 per share, resulting in an annualized yield of 0.6% for shareholders.

Salesforce Inc. (NYSE:CRM - Get Free Report) shares dropped 2.5% on Wednesday following insider selling activity. The stock traded as low as $256.51 and last traded at $256.78. Approximately 9,063,040 shares traded hands during trading, an increase of 16% from the average daily volume of 7,825,012 shares. The stock had previously closed at $263.41.

Specifically, CEO Marc Benioff sold 2,250 shares of Salesforce stock in a transaction on Monday, October 20th. The shares were sold at an average price of $252.28, for a total value of $567,630.00. Following the completion of the sale, the chief executive officer owned 11,911,571 shares of the company's stock, valued at approximately $3,005,051,131.88. The trade was a 0.02% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Marc Benioff sold 2,250 shares of Salesforce stock in a transaction on Friday, October 17th. The shares were sold at an average price of $244.64, for a total transaction of $550,440.00. Following the completion of the sale, the chief executive officer directly owned 11,911,571 shares of the company's stock, valued at approximately $2,914,046,729.44. The trade was a 0.02% decrease in their position. The disclosure for this sale can be found here. In related news, CEO Marc Benioff sold 2,250 shares of Salesforce stock in a transaction on Wednesday, October 15th. The shares were sold at an average price of $238.37, for a total value of $536,332.50. Following the completion of the sale, the chief executive officer owned 11,911,571 shares of the company's stock, valued at approximately $2,839,361,179.27. The trade was a 0.02% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Macquarie reaffirmed a "neutral" rating and issued a $250.00 price objective on shares of Salesforce in a research note on Thursday, October 16th. Bank of America cut their target price on shares of Salesforce from $350.00 to $325.00 and set a "buy" rating for the company in a research report on Tuesday, August 26th. Wells Fargo & Company cut their target price on shares of Salesforce from $275.00 to $265.00 and set an "equal weight" rating for the company in a research report on Thursday, September 4th. Needham & Company LLC reissued a "buy" rating and set a $400.00 target price on shares of Salesforce in a research report on Thursday, October 16th. Finally, Stifel Nicolaus cut their target price on shares of Salesforce from $325.00 to $300.00 and set a "buy" rating for the company in a research report on Thursday, October 9th. Twenty-five equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $325.23.

Salesforce Price Performance

The stock's 50-day moving average price is $245.46 and its 200 day moving average price is $257.92. The firm has a market cap of $244.45 billion, a price-to-earnings ratio of 37.32, a price-to-earnings-growth ratio of 2.13 and a beta of 1.19. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 0.14.

Salesforce (NYSE:CRM - Get Free Report) last posted its earnings results on Wednesday, September 3rd. The CRM provider reported $2.91 earnings per share for the quarter, beating analysts' consensus estimates of $2.78 by $0.13. The business had revenue of $10.24 billion for the quarter, compared to analysts' expectations of $10.14 billion. Salesforce had a net margin of 16.87% and a return on equity of 13.27%. The firm's revenue for the quarter was up 9.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.56 earnings per share. Salesforce has set its FY 2026 guidance at 11.330-11.370 EPS. Q3 2026 guidance at 2.840-2.860 EPS. Equities research analysts predict that Salesforce Inc. will post 7.46 earnings per share for the current year.

Salesforce Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 9th. Shareholders of record on Wednesday, September 17th were paid a dividend of $0.416 per share. This represents a $1.66 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Wednesday, September 17th. Salesforce's dividend payout ratio is currently 24.13%.

Institutional Trading of Salesforce

Large investors have recently added to or reduced their stakes in the company. Diversified Trust Co grew its stake in Salesforce by 30.1% during the second quarter. Diversified Trust Co now owns 27,786 shares of the CRM provider's stock worth $7,577,000 after buying an additional 6,430 shares during the last quarter. Neville Rodie & Shaw Inc. lifted its position in shares of Salesforce by 4.6% during the second quarter. Neville Rodie & Shaw Inc. now owns 59,970 shares of the CRM provider's stock worth $16,353,000 after purchasing an additional 2,644 shares in the last quarter. AG2R LA Mondiale Gestion D Actifs acquired a new position in shares of Salesforce during the first quarter worth approximately $9,367,000. Jones Financial Companies Lllp lifted its position in shares of Salesforce by 31.2% during the first quarter. Jones Financial Companies Lllp now owns 344,887 shares of the CRM provider's stock worth $93,016,000 after purchasing an additional 81,916 shares in the last quarter. Finally, Wesbanco Bank Inc. raised its stake in shares of Salesforce by 6.8% in the 2nd quarter. Wesbanco Bank Inc. now owns 110,968 shares of the CRM provider's stock valued at $30,260,000 after purchasing an additional 7,091 shares during the period. 80.43% of the stock is owned by institutional investors.

About Salesforce

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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