Salesforce (NYSE:CRM) Stock Price Down 1.7% - Time to Sell?

Key Points

• Salesforce's stock price decreased by 1.7% to $260.34, with trading volume down 77% compared to its average.
• Wall Street analysts maintain a moderate buy rating for Salesforce, with a consensus target price of $348.16.
• The company reported a 7.6% revenue increase year-over-year, achieving $9.83 billion for the quarter, along with an EPS of $2.58 which exceeded expectations.

Salesforce Inc. (NYSE:CRM - Get Free Report)'s stock price fell 1.7% on Thursday . The stock traded as low as $259.83 and last traded at $260.34. 1,595,018 shares were traded during mid-day trading, a decline of 77% from the average session volume of 7,057,744 shares. The stock had previously closed at $264.81.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. Canaccord Genuity Group decreased their price objective on shares of Salesforce from $400.00 to $350.00 and set a "buy" rating on the stock in a report on Wednesday, May 28th. Mizuho decreased their price objective on shares of Salesforce from $425.00 to $380.00 and set an "outperform" rating on the stock in a report on Thursday, May 15th. JMP Securities restated a "market outperform" rating and issued a $430.00 price objective on shares of Salesforce in a report on Friday, July 11th. Royal Bank Of Canada restated a "sector perform" rating and issued a $275.00 price objective on shares of Salesforce in a report on Monday, July 14th. Finally, BMO Capital Markets decreased their price objective on shares of Salesforce from $350.00 to $335.00 and set an "outperform" rating on the stock in a report on Thursday, July 10th. Three analysts have rated the stock with a sell rating, eight have assigned a hold rating, twenty-seven have given a buy rating and four have assigned a strong buy rating to the company. Based on data from MarketBeat, Salesforce currently has a consensus rating of "Moderate Buy" and an average target price of $348.16.

Salesforce Price Performance

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 stock's 50-day moving average is $266.48 and its 200 day moving average is $282.69. The stock has a market capitalization of $241.27 billion, a PE ratio of 39.48, a P/E/G ratio of 2.40 and a beta of 1.36.

Salesforce (NYSE:CRM - Get Free Report) last posted its earnings results 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 firm had revenue of $9.83 billion for the quarter, compared to the consensus estimate of $9.74 billion. Salesforce had a net margin of 16.08% and a return on equity of 12.94%. The company's revenue was up 7.6% on a year-over-year basis. During the same period last year, the firm posted $2.44 EPS. As a group, equities analysts expect 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. Investors of record on Wednesday, June 18th were paid a dividend of $0.416 per share. The ex-dividend date 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 currently 25.98%.

Insiders Place Their Bets

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

Institutional Trading of Salesforce

A number of large investors have recently bought and sold shares of the business. Bernard Wealth Management Corp. acquired a new stake in shares of Salesforce in the 4th quarter worth $25,000. Accredited Wealth Management LLC purchased a new position in Salesforce during the 4th quarter valued at about $27,000. Painted Porch Advisors LLC increased its holdings in Salesforce by 260.0% during the 2nd quarter. Painted Porch Advisors LLC now owns 90 shares of the CRM provider's stock valued at $25,000 after acquiring an additional 65 shares in the last quarter. Wood Tarver Financial Group LLC purchased a new position in Salesforce during the 4th quarter valued at about $35,000. Finally, Capital A Wealth Management LLC grew its holdings in shares of Salesforce by 450.0% during the first quarter. Capital A Wealth Management LLC now owns 110 shares of the CRM provider's stock worth $30,000 after buying an additional 90 shares in the last quarter. Institutional investors and hedge funds 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.