Salesforce (NYSE:CRM) Shares Up 1.1% - Here's Why

Key Points

• Salesforce shares increased by 1.1%, trading at $243.58 after reaching a high of $244.53, though the trading volume was down by 35% compared to the average session volume.
• Several brokerages have recently adjusted their target prices for Salesforce, with Sanford C. Bernstein cutting theirs from $255.00 to $221.00, while Citigroup increased their target from $275.00 to $276.00.
• The company announced a quarterly dividend of $0.416 per share, with an annualized dividend yield of 0.7%, scheduled for payment on October 9th.

Salesforce Inc. (NYSE:CRM - Get Free Report) shares shot up 1.1% during mid-day trading on Friday . The company traded as high as $244.53 and last traded at $243.58. 4,967,581 shares traded hands during mid-day trading, a decline of 35% from the average session volume of 7,596,066 shares. The stock had previously closed at $240.95.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on CRM. Sanford C. Bernstein cut their target price on Salesforce from $255.00 to $221.00 and set an "underperform" rating on the stock in a report on Thursday, September 4th. Wells Fargo & Company cut their target price on Salesforce from $275.00 to $265.00 and set an "equal weight" rating on the stock in a report on Thursday, September 4th. Citigroup increased their target price on Salesforce from $275.00 to $276.00 and gave the stock a "neutral" rating in a report on Tuesday, September 9th. UBS Group cut their target price on Salesforce from $300.00 to $260.00 and set a "neutral" rating on the stock in a report on Monday, August 18th. Finally, DA Davidson upgraded Salesforce from an "underperform" rating to a "neutral" rating and set a $225.00 target price on the stock in a report on Friday, August 15th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Salesforce presently has an average rating of "Moderate Buy" and an average price target of $332.58.

Salesforce Stock Up 1.1%

The company has a market capitalization of $231.89 billion, a P/E ratio of 35.40, a PEG ratio of 2.24 and a beta of 1.22. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.12 and a current ratio of 1.12. The stock has a 50 day moving average price of $249.70 and a 200 day moving average price of $261.92.

Salesforce (NYSE:CRM - Get Free Report) last released its earnings results on Wednesday, September 3rd. The CRM provider reported $2.91 EPS for the quarter, topping analysts' consensus estimates of $2.78 by $0.13. The company had revenue of $10.24 billion for the quarter, compared to analysts' expectations of $10.14 billion. Salesforce had a return on equity of 13.27% and a net margin of 16.87%.The business's revenue for the quarter was up 9.8% compared to the same quarter last year. During the same period in the previous year, the business posted $2.56 EPS. 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 forecast that Salesforce Inc. will post 7.46 earnings per share for the current fiscal year.

Salesforce Announces Dividend

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%.

Insider Transactions at Salesforce

In other news, Director David Blair Kirk acquired 3,400 shares of the stock in a transaction that occurred on Tuesday, September 9th. The shares were acquired at an average cost of $254.66 per share, for a total transaction of $865,844.00. Following the purchase, the director owned 3,824 shares of the company's stock, valued at approximately $973,819.84. The trade was a 801.89% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Marc Benioff sold 2,250 shares of the business's stock in a transaction dated Wednesday, September 24th. The shares were sold at an average price of $245.85, for a total value of $553,162.50. Following the completion of the sale, the chief executive officer owned 11,911,571 shares in the company, valued at $2,928,459,730.35. This represents a 0.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 78,750 shares of company stock worth $19,955,745 over the last 90 days. 3.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Salesforce

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Brighton Jones LLC grew its holdings in Salesforce by 13.7% during the 4th quarter. Brighton Jones LLC now owns 25,668 shares of the CRM provider's stock valued at $8,582,000 after buying an additional 3,102 shares in the last quarter. Revolve Wealth Partners LLC grew its holdings in shares of Salesforce by 12.6% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,827 shares of the CRM provider's stock worth $611,000 after purchasing an additional 205 shares in the last quarter. Bison Wealth LLC grew its holdings in shares of Salesforce by 9.0% during the fourth quarter. Bison Wealth LLC now owns 2,234 shares of the CRM provider's stock worth $747,000 after purchasing an additional 184 shares in the last quarter. Voloridge Investment Management LLC purchased a new position in shares of Salesforce during the fourth quarter worth about $872,000. Finally, Wood Tarver Financial Group LLC purchased a new position in shares of Salesforce during the fourth quarter worth about $35,000. 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.

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