Salesforce (NYSE:CRM) Shares Gap Down Following Insider Selling

Key Points

• Salesforce shares experienced a significant drop, opening at $240.06 after CEO Marc Benioff sold 2,250 shares, leading to a last trading value of $239.36.
• Analysts have reduced their price targets for Salesforce, with upgrades and downgrades resulting in targets as low as $250.00 and as high as $350.00, reflecting varied confidence in the stock.
• Salesforce reported strong quarterly earnings with an EPS of $2.91, surpassing estimates and showing a year-over-year revenue increase of 9.8%.

Shares of Salesforce Inc. (NYSE:CRM - Get Free Report) gapped down prior to trading on Thursday following insider selling activity. The stock had previously closed at $256.45, but opened at $240.06. Salesforce shares last traded at $239.36, with a volume of 9,410,933 shares changing hands.

Specifically, CEO Marc Benioff sold 2,250 shares of Salesforce stock in a transaction dated Tuesday, September 2nd. The shares were 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 of the company's stock, valued at approximately $2,997,665,957.86. The trade was a 0.02% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Marc Benioff sold 2,250 shares of the business's stock in a transaction dated Friday, August 29th. The shares were sold at an average price of $255.30, for a total transaction of $574,425.00. Following the transaction, the chief executive officer directly owned 11,911,571 shares of the company's stock, valued at $3,041,024,076.30. The trade was a 0.02% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. BMO Capital Markets dropped their target price on shares of Salesforce from $335.00 to $280.00 and set an "outperform" rating on the stock in a research report on Thursday. Canaccord Genuity Group decreased their target price on shares of Salesforce from $350.00 to $300.00 and set a "buy" rating for the company in a research report on Thursday. Erste Group Bank cut shares of Salesforce from a "buy" rating to a "hold" rating in a research note on Thursday, June 5th. Macquarie restated a "neutral" rating and set a $290.00 price objective on shares of Salesforce in a report on Thursday. Finally, Stephens lowered their target price on shares of Salesforce from $311.00 to $309.00 and set an "equal weight" rating on the stock in a report on Friday, May 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Salesforce currently has a consensus rating of "Moderate Buy" and an average target price of $331.34.

Salesforce Stock Up 2.6%

The firm has a market capitalization of $239.39 billion, a P/E ratio of 36.40, a PEG ratio of 2.27 and a beta of 1.22. The firm's 50 day moving average is $255.64 and its two-hundred day moving average is $266.68. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.07 and a quick ratio of 1.07.

Salesforce (NYSE:CRM - Get Free Report) last posted its quarterly earnings data on Wednesday, September 3rd. The CRM provider reported $2.91 earnings per share for the quarter, topping the consensus estimate 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 quarter in the prior year, the business posted $2.56 earnings per share. Salesforce's revenue was up 9.8% compared to the same quarter last year. Salesforce has set its FY 2026 guidance at 11.330-11.370 EPS. Q3 2026 guidance at 2.840-2.860 EPS. Research analysts predict that Salesforce Inc. will post 7.46 EPS for the current year.

Salesforce Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 9th. Stockholders 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%. The ex-dividend date is Wednesday, September 17th. Salesforce's payout ratio is presently 24.13%.

Institutional Investors Weigh In On Salesforce

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

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.