Salesforce (NYSE:CRM) Stock Price Down 1.1% After Analyst Downgrade

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.

Shares of Salesforce Inc. (NYSE:CRM - Get Free Report) fell 1.1% on Thursday after Stifel Nicolaus lowered their price target on the stock from $375.00 to $325.00. Stifel Nicolaus currently has a buy rating on the stock. Salesforce traded as low as $232.87 and last traded at $234.34. 2,041,120 shares were traded during mid-day trading, a decline of 71% from the average session volume of 7,153,141 shares. The stock had previously closed at $237.03.

A number of other equities analysts have also commented on the company. Mizuho reduced their price objective on Salesforce from $425.00 to $380.00 and set an "outperform" rating on the stock in a research note on Thursday, May 15th. Oppenheimer reaffirmed an "outperform" rating and set a $370.00 price target on shares of Salesforce in a research note on Tuesday, June 10th. BMO Capital Markets lowered their price target on shares of Salesforce from $350.00 to $335.00 and set an "outperform" rating for the company in a research report on Thursday, July 10th. Erste Group Bank cut shares of Salesforce from a "buy" rating to a "hold" rating in a research report on Thursday, June 5th. Finally, Westpark Capital reiterated a "buy" rating and set a $320.00 price target on shares of Salesforce in a research report on Wednesday, May 28th. Three equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating, twenty-seven have issued a buy rating and four have issued a strong buy rating to the stock. According to MarketBeat.com, Salesforce presently has an average rating of "Moderate Buy" and a consensus price target of $346.84.

Insiders Place Their Bets

In related news, CEO Marc Benioff sold 2,250 shares of Salesforce stock in a transaction on Monday, August 11th. The shares were sold at an average price of $236.45, for a total value of $532,012.50. Following the transaction, the chief executive officer directly owned 11,911,571 shares of the company's stock, valued at $2,816,490,962.95. The trade was a 0.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In the last three months, insiders sold 44,282 shares of company stock worth $11,554,754. Corporate insiders own 3.00% of the company's stock.

Institutional Investors Weigh In On Salesforce

Institutional investors have recently modified their holdings of the business. Brighton Jones LLC lifted its position in shares of Salesforce by 13.7% in the fourth quarter. Brighton Jones LLC now owns 25,668 shares of the CRM provider's stock valued at $8,582,000 after acquiring an additional 3,102 shares in the last quarter. Revolve Wealth Partners LLC boosted its position in Salesforce by 12.6% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,827 shares of the CRM provider's stock valued at $611,000 after acquiring an additional 205 shares in the last quarter. Jump Financial LLC acquired a new position in Salesforce during the 4th quarter valued at about $361,000. Acorns Advisers LLC purchased a new stake in Salesforce during the 4th quarter worth approximately $227,000. Finally, Evergreen Capital Management LLC raised its stake in Salesforce by 37.3% in the 4th quarter. Evergreen Capital Management LLC now owns 35,179 shares of the CRM provider's stock worth $11,776,000 after acquiring an additional 9,552 shares during the last quarter. 80.43% of the stock is owned by hedge funds and other institutional investors.

Salesforce Price Performance

The stock has a 50 day simple moving average of $261.72 and a two-hundred day simple moving average of $277.44. The firm has a market cap of $224.03 billion, a PE ratio of 36.67, a price-to-earnings-growth ratio of 2.10 and a beta of 1.37. 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 posted its quarterly earnings data on Wednesday, May 28th. The CRM provider reported $2.58 EPS for the quarter, topping the consensus estimate of $2.55 by $0.03. The company had revenue of $9.83 billion during the quarter, compared to analyst estimates of $9.74 billion. Salesforce had a return on equity of 12.94% and a net margin of 16.08%. Salesforce's quarterly revenue was up 7.6% on a year-over-year basis. During the same period in the previous year, the business earned $2.44 EPS. Sell-side analysts expect 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. Shareholders of record on Wednesday, June 18th were given a $0.416 dividend. The ex-dividend date of this dividend was Wednesday, June 18th. This represents a $1.66 dividend on an annualized basis and a yield of 0.7%. Salesforce's dividend payout ratio is presently 25.98%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.