Salesforce (NYSE:CRM) Shares Up 1.1% - Time to Buy?

Key Points

• Salesforce's stock rose by 1.1% in mid-day trading, with shares changing hands at an average price of $253.39, reflecting a significant drop in trading volume compared to previous sessions.
• Analysts have varying forecasts for Salesforce, with target prices ranging from $200 to $430, resulting in a consensus rating of "Moderate Buy" and an average target price of $348.16.
• The company announced a quarterly dividend of $0.416 per share, representing an annual yield of 0.7%, amid institutional interest that has seen hedge funds increase their stakes.

Salesforce Inc. (NYSE:CRM - Get Free Report)'s stock price shot up 1.1% during mid-day trading on Monday . The stock traded as high as $252.98 and last traded at $253.39. 1,044,404 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 7,059,739 shares. The stock had previously closed at $250.74.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on CRM. Wells Fargo & Company increased their target price on Salesforce from $255.00 to $275.00 and gave the stock an "equal weight" rating in a report on Thursday, May 29th. DA Davidson reiterated an "underperform" rating and set a $200.00 price objective on shares of Salesforce in a report on Wednesday, May 28th. Westpark Capital restated a "buy" rating and issued a $320.00 target price on shares of Salesforce in a report on Wednesday, May 28th. Citigroup cut their price target on Salesforce from $320.00 to $295.00 and set a "neutral" rating for the company in a research note on Friday, May 30th. Finally, JMP Securities reissued a "market outperform" rating and issued a $430.00 price objective on shares of Salesforce in a research note on Friday, July 11th. Three investment analysts have rated the stock with a sell rating, eight have given a hold rating, twenty-seven have assigned a buy rating and four have issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $348.16.

Salesforce Stock Up 0.6%

The company has a market cap of $241.11 billion, a PE ratio of 39.47, a PEG ratio of 2.28 and a beta of 1.37. The stock's 50 day moving average price is $266.04 and its 200-day moving average price is $281.65. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.07 and a current ratio of 1.07.

Salesforce (NYSE:CRM - Get Free Report) last announced its quarterly earnings data on Wednesday, May 28th. The CRM provider reported $2.58 earnings per share for the quarter, beating the consensus estimate of $2.55 by $0.03. The firm had revenue of $9.83 billion during the quarter, compared to the consensus estimate of $9.74 billion. Salesforce had a return on equity of 12.94% and a net margin of 16.08%. The business's revenue was up 7.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.44 earnings per share. On average, analysts predict that Salesforce Inc. will post 7.46 earnings per share for the current year.

Salesforce Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 10th. Stockholders of record on Wednesday, June 18th were paid a dividend of $0.416 per share. The ex-dividend date of this dividend was Wednesday, June 18th. This represents a $1.66 dividend on an annualized basis and a dividend yield of 0.7%. Salesforce's payout ratio is presently 25.98%.

Insider Buying and Selling

In related news, CEO Marc Benioff sold 2,250 shares of the company's stock in a transaction on Wednesday, July 30th. The stock was sold at an average price of $265.77, for a total value of $597,982.50. Following the sale, the chief executive officer directly owned 11,911,571 shares of the company's stock, valued at $3,165,738,224.67. This represents a 0.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders have sold 39,729 shares of company stock valued at $10,763,881 in the last ninety days. Company insiders own 3.20% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Notis McConarty Edward boosted its stake in Salesforce by 71.6% during the 1st quarter. Notis McConarty Edward now owns 3,844 shares of the CRM provider's stock valued at $1,032,000 after purchasing an additional 1,604 shares during the last quarter. Alecta Tjanstepension Omsesidigt raised its stake in Salesforce by 121.9% during the 1st quarter. Alecta Tjanstepension Omsesidigt now owns 355,000 shares of the CRM provider's stock valued at $95,222,000 after buying an additional 195,000 shares during the last quarter. Delaney Dennis R lifted its holdings in shares of Salesforce by 66.1% during the 1st quarter. Delaney Dennis R now owns 5,694 shares of the CRM provider's stock valued at $1,528,000 after buying an additional 2,266 shares during the period. Journey Strategic Wealth LLC grew its holdings in shares of Salesforce by 34.5% in the first quarter. Journey Strategic Wealth LLC now owns 4,948 shares of the CRM provider's stock worth $1,328,000 after acquiring an additional 1,270 shares during the period. Finally, Mathes Company Inc. increased its position in Salesforce by 396.9% during the first quarter. Mathes Company Inc. now owns 12,298 shares of the CRM provider's stock valued at $3,300,000 after acquiring an additional 9,823 shares during the last quarter. Hedge funds and other institutional investors own 80.43% of the company's stock.

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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