Salesforce (NYSE:CRM) Shares Up 3.5% - Still a Buy?

Key Points

• Salesforce shares rose 3.5% to $241.48, despite a 45% decline in trading volume from the average session.
• Analysts have set various price targets for the stock, with a consensus average target of $347.50 and a majority giving it a rating of "Moderate Buy."
• The company recently reported earnings that exceeded expectations, generating $9.83 billion in revenue, marking a 7.6% year-over-year increase.

Salesforce Inc. (NYSE:CRM - Get Free Report)'s share price traded up 3.5% on Friday . The company traded as high as $241.92 and last traded at $241.48. 3,969,566 shares traded hands during mid-day trading, a decline of 45% from the average session volume of 7,164,495 shares. The stock had previously closed at $233.37.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on CRM shares. Northland Securities lowered their target price on shares of Salesforce from $423.00 to $396.00 and set an "outperform" rating for the company in a research note on Thursday, May 29th. Needham & Company LLC reissued a "buy" rating and set a $400.00 target price on shares of Salesforce in a research note on Wednesday, May 28th. Mizuho decreased their price target on shares of Salesforce from $425.00 to $380.00 and set an "outperform" rating for the company in a research note on Thursday, May 15th. DA Davidson raised shares of Salesforce from an "underperform" rating to a "neutral" rating and set a $225.00 target price for the company in a research report on Friday. Finally, Westpark Capital reissued a "buy" rating and set a $320.00 target price on shares of Salesforce in a research report on Wednesday, May 28th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating, twenty-seven have assigned a buy rating and four have given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $347.50.

Salesforce Stock Performance

The stock's 50 day moving average price is $261.05 and its 200 day moving average price is $276.65. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.07 and a current ratio of 1.07. The company has a market capitalization of $232.28 billion, a P/E ratio of 38.08, a price-to-earnings-growth ratio of 2.15 and a beta of 1.37.

Salesforce (NYSE:CRM - Get Free Report) last posted its quarterly earnings data on Wednesday, May 28th. The CRM provider reported $2.58 EPS for the quarter, beating analysts' consensus estimates of $2.55 by $0.03. The company had revenue of $9.83 billion for the quarter, compared to analyst estimates of $9.74 billion. Salesforce had a net margin of 16.08% and a return on equity of 12.94%. The company's quarterly revenue was up 7.6% on a year-over-year basis. During the same period in the prior year, the firm posted $2.44 EPS. As a group, equities analysts expect that Salesforce Inc. will post 7.46 EPS for the current year.

Salesforce Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 10th. Shareholders of record on Wednesday, June 18th were paid a $0.416 dividend. This represents a $1.66 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Wednesday, June 18th. Salesforce's dividend payout ratio (DPR) is 25.98%.

Insider Buying and Selling at Salesforce

In other Salesforce news, CEO Marc Benioff sold 2,250 shares of the firm's stock in a transaction on Monday, July 14th. The shares were sold at an average price of $260.30, for a total value of $585,675.00. Following the transaction, the chief executive officer directly owned 11,955,566 shares of the company's stock, valued at approximately $3,112,033,829.80. This trade represents a 0.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders have sold 46,532 shares of company stock valued at $12,082,694 over the last 90 days. 3.00% of the stock is currently owned by company insiders.

Institutional Trading of Salesforce

A number of large investors have recently added to or reduced their stakes in the stock. Coign Capital Advisors LLC boosted its stake in shares of Salesforce by 1.7% in the first quarter. Coign Capital Advisors LLC now owns 2,183 shares of the CRM provider's stock valued at $586,000 after buying an additional 37 shares in the last quarter. Staley Capital Advisers Inc. raised its holdings in shares of Salesforce by 1.1% in the first quarter. Staley Capital Advisers Inc. now owns 3,343 shares of the CRM provider's stock worth $897,000 after acquiring an additional 38 shares during the last quarter. KDT Advisors LLC raised its holdings in shares of Salesforce by 4.1% in the first quarter. KDT Advisors LLC now owns 967 shares of the CRM provider's stock worth $260,000 after acquiring an additional 38 shares during the last quarter. Liberty One Investment Management LLC raised its holdings in shares of Salesforce by 1.2% in the first quarter. Liberty One Investment Management LLC now owns 3,165 shares of the CRM provider's stock worth $849,000 after acquiring an additional 39 shares during the last quarter. Finally, First Command Advisory Services Inc. raised its holdings in shares of Salesforce by 7.3% in the first quarter. First Command Advisory Services Inc. now owns 572 shares of the CRM provider's stock worth $154,000 after acquiring an additional 39 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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