Salesforce (NYSE:CRM) Stock Price Up 1.6% - Still a Buy?

Key Points

• Salesforce's stock price increased by 1.6%, with recent trading around $247.65, significantly below its average daily trading volume.
• Multiple analysts have given Salesforce a consensus rating of "Moderate Buy", with target prices ranging from $309.00 to $430.00.
• The company reported a 7.6% year-over-year revenue growth and exceeded earnings expectations, posting $2.58 EPS for the last quarter.

Salesforce Inc. (NYSE:CRM - Get Free Report)'s share price rose 1.6% on Wednesday . The stock traded as high as $248.34 and last traded at $247.65. Approximately 1,309,812 shares traded hands during mid-day trading, a decline of 82% from the average daily volume of 7,199,200 shares. The stock had previously closed at $243.74.

Wall Street Analyst Weigh In

CRM has been the subject of several research reports. Westpark Capital reiterated a "buy" rating and issued a $320.00 target price on shares of Salesforce in a report on Wednesday, May 28th. JMP Securities reiterated a "market outperform" rating and issued a $430.00 target price on shares of Salesforce in a report on Friday, July 11th. Stephens dropped their target price on shares of Salesforce from $311.00 to $309.00 and set an "equal weight" rating for the company in a report on Friday, May 30th. Bank of America dropped their target price on shares of Salesforce from $350.00 to $325.00 and set a "buy" rating for the company in a report on Tuesday. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $400.00 target price on shares of Salesforce in a report on Wednesday, May 28th. Four investment analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Salesforce currently has a consensus rating of "Moderate Buy" and a consensus price target of $340.54.

Salesforce Trading Up 2.4%

The company's 50 day simple moving average is $257.69 and its 200 day simple moving average is $270.78. The firm has a market cap of $238.57 billion, a price-to-earnings ratio of 39.01, a P/E/G ratio of 2.25 and a beta of 1.37. 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 quarterly earnings data on Wednesday, May 28th. The CRM provider reported $2.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.55 by $0.03. The business had revenue of $9.83 billion during the quarter, compared to analysts' expectations of $9.74 billion. Salesforce had a net margin of 16.08% and a return on equity of 12.94%. The company's revenue for the quarter was up 7.6% on a year-over-year basis. During the same period in the previous year, the company earned $2.44 EPS. As a group, research analysts expect that Salesforce Inc. will post 7.46 earnings per share for the current fiscal year.

Salesforce Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 10th. Stockholders of record on Wednesday, June 18th were given a dividend of $0.416 per share. This represents a $1.66 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Wednesday, June 18th. Salesforce's payout ratio is 25.98%.

Insider Activity

In other news, CEO Marc Benioff sold 2,250 shares of Salesforce stock in a transaction on Monday, August 25th. The shares were 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 directly owned 11,911,571 shares of the company's stock, valued at approximately $2,948,947,632.47. The trade was a 0.02% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last three months, insiders have sold 57,077 shares of company stock worth $14,642,478. 3.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Salesforce

Institutional investors have recently modified their holdings of the company. Coign Capital Advisors LLC lifted its position in Salesforce by 1.7% in the first quarter. Coign Capital Advisors LLC now owns 2,183 shares of the CRM provider's stock valued at $586,000 after acquiring an additional 37 shares during the last quarter. Staley Capital Advisers Inc. lifted its position in Salesforce by 1.1% in the first quarter. Staley Capital Advisers Inc. now owns 3,343 shares of the CRM provider's stock valued at $897,000 after acquiring an additional 38 shares during the last quarter. KDT Advisors LLC lifted its position in Salesforce by 4.1% in the first quarter. KDT Advisors LLC now owns 967 shares of the CRM provider's stock valued at $260,000 after acquiring an additional 38 shares during the last quarter. Liberty One Investment Management LLC lifted its position in Salesforce by 1.2% in the first quarter. Liberty One Investment Management LLC now owns 3,165 shares of the CRM provider's stock valued at $849,000 after acquiring an additional 39 shares during the last quarter. Finally, First Command Advisory Services Inc. lifted its position in Salesforce by 7.3% in the first quarter. First Command Advisory Services Inc. now owns 572 shares of the CRM provider's stock valued at $154,000 after acquiring an additional 39 shares during the last quarter. 80.43% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.