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

Key Points

• Salesforce shares fell 1.7% in mid-day trading, underperforming recent averages with volume well below normal. The stock traded between $164.78 and $166.60 after closing at $169.52 the prior day.
• Despite the pullback, the article highlights several positive catalysts, including a U.S. Air Force contract for its Missionforce software and Guggenheim’s upgrade to Buy with a $228 price target, arguing that bearish AI concerns may be overstated.
• Analysts remain mixed: some have cut targets or issued underweight ratings, while the consensus still stands at Moderate Buy with an average price target of $254.42. However, the stock continues to face questions about whether AI investments will translate into stronger profitability.

Salesforce Inc. (NYSE:CRM - Get Free Report) traded down 1.7% during mid-day trading on Wednesday . The company traded as low as $164.78 and last traded at $166.5970. Approximately 8,123,756 shares were traded during mid-day trading, a decline of 42% from the average daily volume of 13,949,563 shares. The stock had previously closed at $169.52.

Trending Headlines about Salesforce

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce announced that the U.S. Air Force’s 441st Vehicle Support Chain Operations Squadron is using its Missionforce National Security software to manage a $13.5 billion fleet, a high-profile contract that highlights CRM’s public-sector traction and could support future revenue. Article Title
• Positive Sentiment: Guggenheim upgraded Salesforce to Buy from Neutral and set a $228 price target, saying the bearish case around AI looks overdone; that reinforces the view that the stock may have been oversold. Article Title
• Positive Sentiment: Several recent analyst and media reports pointed to improving sentiment on CRM, with bullish commentary about its AI/data strategy, Agentforce momentum, and discounted valuation potentially attracting buyers. Article Title
• Neutral Sentiment: Commentary comparing Salesforce with ServiceNow and discussing broader enterprise AI trends may be helping investors reassess CRM’s strategic position, but these pieces are more interpretive than company-specific catalysts. Article Title
• Negative Sentiment: Despite the positive news flow, some articles noted ongoing margin concerns and recent share weakness, reminding investors that Salesforce still needs to prove its AI investments can translate into stronger profitability. Article Title

Analyst Ratings Changes

Several research analysts have commented on the company. Wells Fargo & Company cut their price target on Salesforce from $210.00 to $200.00 and set an "equal weight" rating on the stock in a research report on Thursday, May 28th. The Goldman Sachs Group started coverage on shares of Salesforce in a research report on Thursday, June 18th. They set a "neutral" rating on the stock. Royal Bank Of Canada cut shares of Salesforce from a "sector perform" rating to a "sector perform" rating in a report on Wednesday, July 1st. Weiss Ratings downgraded shares of Salesforce from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, June 17th. Finally, Sanford C. Bernstein decreased their price target on shares of Salesforce from $194.00 to $173.00 and set an "underperform" rating for the company in a research note on Thursday, May 28th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, twelve have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $254.42.

Salesforce Price Performance

The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.15. The stock has a fifty day simple moving average of $172.90 and a two-hundred day simple moving average of $196.06. The company has a market cap of $136.44 billion, a PE ratio of 19.28, a price-to-earnings-growth ratio of 1.03 and a beta of 1.18.

Salesforce (NYSE:CRM - Get Free Report) last released its earnings results on Wednesday, May 27th. The CRM provider reported $3.88 EPS for the quarter, beating analysts' consensus estimates of $3.13 by $0.75. Salesforce had a return on equity of 18.72% and a net margin of 18.73%.The company had revenue of $11.13 billion during the quarter, compared to the consensus estimate of $11.05 billion. During the same quarter last year, the company earned $2.58 earnings per share. Salesforce's quarterly revenue was up 13.3% compared to the same quarter last year. Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS. On average, equities analysts predict that Salesforce Inc. will post 10.29 EPS for the current fiscal year.

Salesforce Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th were given a dividend of $0.44 per share. This represents a $1.76 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend was Thursday, June 11th. Salesforce's payout ratio is 20.37%.

Salesforce announced that its Board of Directors has approved a stock buyback program on Monday, March 16th that permits the company to buyback $25.00 billion in shares. This buyback authorization permits the CRM provider to repurchase up to 14.1% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Institutional Trading of Salesforce

A number of institutional investors have recently modified their holdings of the company. Brighton Jones LLC lifted its holdings in shares of Salesforce by 13.7% during the 4th 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 increased its holdings in Salesforce by 12.6% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,827 shares of the CRM provider's stock valued at $611,000 after purchasing an additional 205 shares in the last quarter. Bison Wealth LLC raised its position in Salesforce by 9.0% in the fourth quarter. Bison Wealth LLC now owns 2,234 shares of the CRM provider's stock valued at $747,000 after purchasing an additional 184 shares during the period. Sivia Capital Partners LLC raised its position in Salesforce by 3.7% in the second quarter. Sivia Capital Partners LLC now owns 2,958 shares of the CRM provider's stock valued at $807,000 after purchasing an additional 106 shares during the period. Finally, United Bank lifted its stake in shares of Salesforce by 5.2% during the second quarter. United Bank now owns 10,198 shares of the CRM provider's stock worth $2,781,000 after purchasing an additional 500 shares in the last quarter. Hedge funds and other institutional investors own 80.43% of the company's stock.

Salesforce Company Profile

Salesforce, founded in 1999 and headquartered in San Francisco, is a global provider of cloud-based software focused on customer relationship management (CRM) and enterprise applications. The company popularized the software-as-a-service (SaaS) model for CRM and has built a broad portfolio of products designed to help organizations manage sales, service, marketing, commerce and analytics through a unified, cloud-first platform.

Core offerings include Sales Cloud for sales automation, Service Cloud for customer support, Marketing Cloud for digital marketing and engagement, and Commerce Cloud for e-commerce.

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