Salesforce (NYSE:CRM) Stock Price Up 1.5% - Here's What Happened

Key Points

• Salesforce's stock price rose by 1.5%, reaching a last trading price of $235.05, despite a significant drop in trading volume.
• The company reported earnings per share (EPS) of $2.58 for the last quarter, slightly exceeding analysts' expectations of $2.55.
• Recent analyst ratings have mixed sentiment with three sell ratings, eight hold ratings, and a total of twenty-seven buy ratings on the stock, indicating a moderate buy outlook overall.

Shares of Salesforce Inc. (NYSE:CRM - Get Free Report) shot up 1.5% on Wednesday . The stock traded as high as $234.41 and last traded at $235.05. 3,286,188 shares were traded during mid-day trading, a decline of 54% from the average session volume of 7,138,329 shares. The stock had previously closed at $231.66.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the company. Citigroup cut their target price on Salesforce from $320.00 to $295.00 and set a "neutral" rating for the company in a research report on Friday, May 30th. Needham & Company LLC reissued a "buy" rating and set a $400.00 price objective on shares of Salesforce in a report on Wednesday, May 28th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $275.00 target price on shares of Salesforce in a report on Monday, July 14th. Stifel Nicolaus cut their price target on shares of Salesforce from $375.00 to $325.00 and set a "buy" rating for the company in a report on Wednesday. Finally, 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 research note on Thursday, May 15th. Three investment analysts have rated the stock with a sell rating, eight have issued a hold rating, twenty-seven have given a buy rating and four have issued a strong buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $346.84.

Salesforce Trading Up 2.4%

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 firm has a fifty day moving average price of $262.23 and a 200 day moving average price of $277.72. The company has a market cap of $226.71 billion, a price-to-earnings ratio of 37.11, a P/E/G ratio of 2.11 and a beta of 1.37.

Salesforce (NYSE:CRM - Get Free Report) last issued its earnings results on Wednesday, May 28th. The CRM provider reported $2.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.55 by $0.03. Salesforce had a net margin of 16.08% and a return on equity of 12.94%. The company had revenue of $9.83 billion for the quarter, compared to analysts' expectations of $9.74 billion. During the same period in the prior year, the firm earned $2.44 EPS. Salesforce's quarterly revenue was up 7.6% compared to the same quarter last year. As a group, equities analysts predict that Salesforce Inc. will post 7.46 EPS for the current fiscal year.

Salesforce Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 10th. Shareholders of record on Wednesday, June 18th were given 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 of this dividend was Wednesday, June 18th. Salesforce's payout ratio is 25.98%.

Insider Activity at Salesforce

In other news, CEO Marc Benioff sold 2,250 shares of the firm's stock in a transaction dated Monday, July 14th. The shares were sold at an average price of $260.30, for a total transaction of $585,675.00. Following the completion of the sale, the chief executive officer owned 11,955,566 shares in the company, valued at approximately $3,112,033,829.80. This trade represents a 0.02% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Insiders have sold 44,282 shares of company stock valued at $11,554,754 in the last 90 days. 3.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Salesforce

A number of large investors have recently made changes to their positions in CRM. Bernard Wealth Management Corp. acquired a new position in Salesforce in the fourth quarter valued at about $25,000. Painted Porch Advisors LLC boosted its position in shares of 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 acquiring an additional 65 shares in the last quarter. Accredited Wealth Management LLC acquired a new position in Salesforce during the fourth quarter valued at approximately $27,000. Capital A Wealth Management LLC boosted its holdings in shares of Salesforce by 450.0% in the 1st quarter. Capital A Wealth Management LLC now owns 110 shares of the CRM provider's stock valued at $30,000 after purchasing an additional 90 shares in the last quarter. Finally, CBIZ Investment Advisory Services LLC increased its stake in shares of Salesforce by 314.8% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 112 shares of the CRM provider's stock valued at $30,000 after purchasing an additional 85 shares during the last quarter. Institutional investors own 80.43% of the company's stock.

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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