Salesforce (NYSE:CRM) Stock Price Up 1.3% - Still a Buy?

Key Points

• Salesforce's stock price rose by 1.3% to $253.52 during mid-day trading, with a significant drop in trading volume compared to its average.
• Analysts have set varied price targets for the stock, with Needham & Company maintaining a "buy" rating at $400.00, while Oppenheimer reduced their target from $370.00 to $315.00.
• The company's quarterly earnings report showed $2.58 earnings per share and a revenue of $9.83 billion, exceeding analysts' expectations and marking a 7.6% year-over-year revenue increase.

Salesforce Inc. (NYSE:CRM - Get Free Report)'s share price rose 1.3% during mid-day trading on Thursday . The company traded as high as $253.35 and last traded at $253.52. Approximately 1,894,587 shares changed hands during mid-day trading, a decline of 74% from the average daily volume of 7,195,557 shares. The stock had previously closed at $250.16.

Analysts Set New Price Targets

CRM has been the topic of a number of research reports. Wells Fargo & Company boosted their price objective on Salesforce from $255.00 to $275.00 and gave the company an "equal weight" rating in a research note on Thursday, May 29th. Needham & Company LLC reaffirmed a "buy" rating and set a $400.00 target price on shares of Salesforce in a report on Wednesday, May 28th. Oppenheimer reduced their target price on Salesforce from $370.00 to $315.00 and set an "outperform" rating for the company in a report on Tuesday. Canaccord Genuity Group reduced their target price on Salesforce from $400.00 to $350.00 and set a "buy" rating for the company in a report on Wednesday, May 28th. Finally, Stephens cut their price objective on Salesforce from $311.00 to $309.00 and set an "equal weight" rating for the company in a report on Friday, May 30th. Four analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $340.54.

Salesforce Stock Performance

The company has a market capitalization of $243.98 billion, a P/E ratio of 39.95, a P/E/G ratio of 2.21 and a beta of 1.37. The business has a 50-day moving average of $257.51 and a 200-day moving average of $270.63. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.07 and a quick ratio of 1.07.

Salesforce (NYSE:CRM - Get Free Report) last released its earnings results on Wednesday, May 28th. The CRM provider reported $2.58 earnings per share for the quarter, topping analysts' consensus estimates of $2.55 by $0.03. The business had revenue of $9.83 billion for 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%.The business's revenue was up 7.6% compared to the same quarter last year. During the same quarter last year, the firm posted $2.44 earnings per share. On average, sell-side analysts anticipate that Salesforce Inc. will post 7.46 EPS for the current year.

Salesforce Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 10th. Investors of record on Wednesday, June 18th were given a dividend of $0.416 per share. 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 (DPR) is presently 25.98%.

Insiders Place Their Bets

In related news, CEO Marc Benioff sold 2,250 shares of Salesforce stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $247.57, for a total transaction of $557,032.50. Following the completion of the sale, the chief executive officer owned 11,911,571 shares of the company's stock, valued at $2,948,947,632.47. The trade was a 0.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders sold a total of 57,077 shares of company stock valued at $14,642,478 over the last three months. 3.00% of the stock is currently owned by company insiders.

Institutional Trading of Salesforce

Large investors have recently added to or reduced their stakes in the stock. AIA Group Ltd boosted its holdings in Salesforce by 8.0% during the 1st quarter. AIA Group Ltd now owns 32,885 shares of the CRM provider's stock valued at $8,825,000 after acquiring an additional 2,436 shares during the period. Notis McConarty Edward increased its position in Salesforce by 71.6% during the first quarter. Notis McConarty Edward now owns 3,844 shares of the CRM provider's stock worth $1,032,000 after buying an additional 1,604 shares during the period. Aberdeen Group plc increased its position in Salesforce by 1.5% during the first quarter. Aberdeen Group plc now owns 1,036,482 shares of the CRM provider's stock worth $274,802,000 after buying an additional 15,782 shares during the period. Leith Wheeler Investment Counsel Ltd. increased its position in Salesforce by 43.0% during the first quarter. Leith Wheeler Investment Counsel Ltd. now owns 104,834 shares of the CRM provider's stock worth $28,133,000 after buying an additional 31,537 shares during the period. Finally, Alecta Tjanstepension Omsesidigt increased its holdings in shares of Salesforce by 121.9% in the first quarter. Alecta Tjanstepension Omsesidigt now owns 355,000 shares of the CRM provider's stock valued at $95,222,000 after purchasing an additional 195,000 shares during the period. 80.43% of the stock is currently owned by hedge funds and other institutional investors.

Salesforce Company Profile

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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