Salesforce (NYSE:CRM) Stock Price Down 1.1% After Insider Selling

Key Points

• Salesforce's stock price declined by 1.1% after Stifel Nicolaus downgraded their price target from $375 to $325, although they still maintain a buy rating.
• Multiple analysts have revised their price targets for Salesforce, with estimates ranging from $320 to $425, while the stock holds an average rating of "Moderate Buy" with a consensus price target of $346.84.
• Insider trading activity includes CEO Marc Benioff selling 2,250 shares for over $532,000, while corporate insiders have sold a total of 44,282 shares valued at around $11.5 million in the last three months.

Salesforce Inc. (NYSE:CRM - Get Free Report) shares were down 1.1% during trading on Thursday after an insider sold shares in the company. The company traded as low as $232.87 and last traded at $234.34. Approximately 2,041,120 shares were traded during trading, a decline of 71% from the average daily volume of 7,153,141 shares. The stock had previously closed at $237.03.

Specifically, CEO Marc Benioff sold 2,250 shares of the firm's stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $234.64, for a total value of $527,940.00. Following the sale, the chief executive officer owned 11,911,571 shares in the company, valued at approximately $2,794,931,019.44. This trade represents a 0.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Marc Benioff sold 2,250 shares of the firm's stock in a transaction that occurred on Monday, August 11th. The stock was sold at an average price of $236.45, for a total transaction of $532,012.50. Following the completion of the sale, the chief executive officer owned 11,911,571 shares in the company, valued at $2,816,490,962.95. This represents a 0.02% decrease in their position. The disclosure for this sale can be found here. In related news, CEO Marc Benioff sold 2,250 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $240.34, for a total value of $540,765.00. Following the sale, the chief executive officer owned 11,911,571 shares in the company, valued at approximately $2,862,826,974.14. This trade represents a 0.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Stephens dropped their price target on shares of Salesforce from $311.00 to $309.00 and set an "equal weight" rating on the stock in a research note on Friday, May 30th. Needham & Company LLC reiterated a "buy" rating and set a $400.00 price target on shares of Salesforce in a research note on Wednesday, May 28th. Erste Group Bank cut shares of Salesforce from a "buy" rating to a "hold" rating in a research note on Thursday, June 5th. Canaccord Genuity Group dropped their price target on shares of Salesforce from $400.00 to $350.00 and set a "buy" rating on the stock in a research note on Wednesday, May 28th. Finally, Wells Fargo & Company lifted their price target on shares of Salesforce from $255.00 to $275.00 and gave the stock an "equal weight" rating in a research note on Thursday, May 29th. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating, twenty-seven have issued a buy rating and four have given a strong buy rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $347.50.

Salesforce Stock Performance

The company has a market capitalization of $232.10 billion, a PE ratio of 37.99, a PEG ratio of 2.20 and a beta of 1.37. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.14. The firm's 50-day simple moving average is $260.41 and its 200-day simple moving average is $275.30.

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

Salesforce Cuts Dividend

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

Institutional Investors Weigh In On Salesforce

Several hedge funds have recently modified their holdings of the business. Norges Bank bought a new position in shares of Salesforce during the 2nd quarter worth approximately $2,826,049,000. Nuveen LLC bought a new position in shares of Salesforce during the 1st quarter worth approximately $2,039,196,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main raised its stake in shares of Salesforce by 926.4% during the 4th quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 4,256,211 shares of the CRM provider's stock worth $1,422,979,000 after acquiring an additional 3,841,521 shares in the last quarter. GAMMA Investing LLC raised its stake in shares of Salesforce by 30,456.9% during the 1st quarter. GAMMA Investing LLC now owns 3,801,588 shares of the CRM provider's stock worth $1,020,194,000 after acquiring an additional 3,789,147 shares in the last quarter. Finally, Laurel Wealth Advisors LLC raised its stake in shares of Salesforce by 27,361.5% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 3,424,169 shares of the CRM provider's stock worth $933,737,000 after acquiring an additional 3,411,700 shares in 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.