Salesforce (NYSE:CRM) Shares Up 2.9% - Here's Why

Key Points

• Salesforce's share price increased by 2.9% and traded as high as $249.35 during mid-day trading, with an average session volume of over 7.8 million shares.
• Several analysts set new price targets for Salesforce, with estimates ranging from $280.00 to $430.00, while the consensus target price is $331.89.
• The company reported better-than-expected quarterly earnings with an EPS of $2.91, exceeding the consensus of $2.78, and revenue reached $10.24 billion.

Salesforce Inc. (NYSE:CRM - Get Free Report)'s share price shot up 2.9% during mid-day trading on Monday . The stock traded as high as $249.35 and last traded at $248.77. 7,858,389 shares were traded during trading, an increase of 3% from the average session volume of 7,664,625 shares. The stock had previously closed at $241.68.

Analysts Set New Price Targets

A number of analysts have recently commented on CRM shares. Needham & Company LLC reissued a "buy" rating and set a $400.00 target price on shares of Salesforce in a research note on Thursday, September 4th. BMO Capital Markets cut their target price on shares of Salesforce from $335.00 to $280.00 and set an "outperform" rating for the company in a research note on Thursday, September 4th. JMP Securities reissued a "market outperform" rating and set a $430.00 target price on shares of Salesforce in a research note on Tuesday, September 2nd. Roth Capital restated a "buy" rating and set a $395.00 price target on shares of Salesforce in a research report on Thursday, September 4th. Finally, Barclays lowered their price target on shares of Salesforce from $347.00 to $316.00 and set an "overweight" rating on the stock in a research report on Monday, August 18th. Twenty-six equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $331.89.

Salesforce Stock Up 2.9%

The business's 50 day moving average price is $244.68 and its 200-day moving average price is $258.64. The firm has a market capitalization of $236.83 billion, a PE ratio of 36.16, a P/E/G ratio of 2.09 and a beta of 1.19. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.12 and a current ratio of 1.12.

Salesforce (NYSE:CRM - Get Free Report) last released its quarterly earnings results on Wednesday, September 3rd. The CRM provider reported $2.91 earnings per share (EPS) 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 the consensus estimate of $10.14 billion. Salesforce had a net margin of 16.87% and a return on equity of 13.27%. The business's revenue was up 9.8% on a year-over-year basis. During the same period in the previous year, the firm earned $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. As a group, equities research analysts forecast that Salesforce Inc. will post 7.46 earnings per share for the current year.

Salesforce Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 9th. Investors 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 0.7%. The ex-dividend date of this dividend was Wednesday, September 17th. Salesforce's dividend payout ratio is presently 24.13%.

Insiders Place Their Bets

In related news, CEO Marc Benioff sold 2,250 shares of the company's stock in a transaction that occurred on Wednesday, October 8th. The shares were sold at an average price of $239.79, for a total transaction of $539,527.50. Following the sale, the chief executive officer directly owned 11,911,571 shares of the company's stock, valued at $2,856,275,610.09. This represents a 0.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last quarter, insiders have sold 76,500 shares of company stock worth $19,049,130. 3.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Salesforce

Several large investors have recently added to or reduced their stakes in CRM. Painted Porch Advisors LLC increased its position in shares of Salesforce by 260.0% in 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. purchased a new stake in shares of Salesforce in the 2nd quarter valued at approximately $27,000. Capital A Wealth Management LLC increased its position in shares of Salesforce by 450.0% in the 1st quarter. Capital A Wealth Management LLC now owns 110 shares of the CRM provider's stock valued at $30,000 after purchasing an additional 90 shares during the last quarter. CBIZ Investment Advisory Services LLC increased its position in shares of Salesforce by 314.8% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 112 shares of the CRM provider's stock valued at $30,000 after purchasing an additional 85 shares during the last quarter. Finally, Abound Financial LLC purchased a new stake in shares of Salesforce in the 1st quarter valued at approximately $31,000. 80.43% of the stock is owned by hedge funds and other 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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