Salesforce (NYSE:CRM) Stock Price Down 3.6% on Analyst Downgrade

Key Points

• Salesforce's stock price fell 3.6% after Northland Securities downgraded it from an outperform to a market perform rating, with a new price target of $264.00.
• Multiple analysts have revised their price targets downward, with Stifel Nicolaus lowering it from $325.00 to $300.00 while maintaining a buy rating, and consensus rating among analysts stands at "Moderate Buy" with an average price target of $328.22.
• Salesforce recently reported a 9.8% year-over-year revenue increase, achieving $10.24 billion for the quarter and surpassing earnings expectations with $2.91 EPS.

Salesforce Inc. (NYSE:CRM - Get Free Report) traded down 3.6% during trading on Tuesday after Northland Securities downgraded the stock from an outperform rating to a market perform rating. Northland Securities now has a $264.00 price target on the stock. Salesforce traded as low as $239.55 and last traded at $239.87. 9,083,444 shares changed hands during trading, an increase of 18% from the average session volume of 7,674,009 shares. The stock had previously closed at $248.75.

Other equities research analysts have also issued reports about the company. Stifel Nicolaus decreased their price target on Salesforce from $325.00 to $300.00 and set a "buy" rating on the stock in a research report on Thursday, October 9th. Deutsche Bank Aktiengesellschaft reduced their price objective on Salesforce from $400.00 to $340.00 and set a "buy" rating on the stock in a report on Thursday, September 4th. Bank of America reduced their price objective on Salesforce from $350.00 to $325.00 and set a "buy" rating on the stock in a report on Tuesday, August 26th. Canaccord Genuity Group reduced their price objective on Salesforce from $350.00 to $300.00 and set a "buy" rating on the stock in a report on Thursday, September 4th. Finally, Barclays reduced their price objective on Salesforce from $347.00 to $316.00 and set an "overweight" rating on the stock in a report on Monday, August 18th. Twenty-five analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Salesforce has a consensus rating of "Moderate Buy" and an average price target of $328.22.

Insiders Place Their Bets

In other news, CEO Marc Benioff sold 2,250 shares of the stock in a transaction on Friday, August 8th. The stock was sold at an average price of $240.34, for a total value of $540,765.00. Following the transaction, the chief executive officer owned 11,911,571 shares of the company's stock, valued at $2,862,826,974.14. This represents a 0.02% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director David Blair Kirk purchased 3,400 shares of the business's stock in a transaction dated Tuesday, September 9th. The stock was bought at an average cost of $254.66 per share, for a total transaction of $865,844.00. Following the purchase, the director owned 3,824 shares in the company, valued at $973,819.84. This trade represents a 801.89% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders sold 76,500 shares of company stock worth $19,049,130. 3.00% of the stock is currently owned by company insiders.

Institutional Trading of Salesforce

Hedge funds have recently added to or reduced their stakes in the business. Painted Porch Advisors LLC raised its stake in Salesforce by 260.0% during the 2nd quarter. Painted Porch Advisors LLC now owns 90 shares of the CRM provider's stock worth $25,000 after buying an additional 65 shares during the period. Evolution Wealth Management Inc. acquired a new stake in Salesforce during the 2nd quarter worth $27,000. Capital A Wealth Management LLC increased its holdings in Salesforce by 450.0% during the 1st quarter. Capital A Wealth Management LLC now owns 110 shares of the CRM provider's stock worth $30,000 after purchasing an additional 90 shares in the last quarter. CBIZ Investment Advisory Services LLC increased its holdings in Salesforce by 314.8% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 112 shares of the CRM provider's stock worth $30,000 after purchasing an additional 85 shares in the last quarter. Finally, Abound Financial LLC bought a new position in Salesforce during the 1st quarter worth about $31,000. Institutional investors and hedge funds own 80.43% of the company's stock.

Salesforce Stock Performance

The stock has a fifty day simple moving average of $244.61 and a 200-day simple moving average of $258.49. The stock has a market cap of $228.36 billion, a P/E ratio of 34.87, a PEG ratio of 2.09 and a beta of 1.19. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.12 and a current ratio of 1.12.

Salesforce (NYSE:CRM - Get Free Report) last released its earnings results on Wednesday, September 3rd. The CRM provider reported $2.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.78 by $0.13. The firm had revenue of $10.24 billion during the quarter, compared to analysts' expectations of $10.14 billion. Salesforce had a return on equity of 13.27% and a net margin of 16.87%.The company's revenue was up 9.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.56 EPS. Salesforce has set its FY 2026 guidance at 11.330-11.370 EPS. Q3 2026 guidance at 2.840-2.860 EPS. On average, equities analysts expect that Salesforce Inc. will post 7.46 earnings per share for the current year.

Salesforce Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, October 9th. Shareholders of record on Wednesday, September 17th were issued a dividend of $0.416 per share. This represents a $1.66 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Wednesday, September 17th. Salesforce's dividend payout ratio is 24.13%.

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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