Salesforce (NYSE:CRM) Stock Price Up 4% - What's Next?

Key Points

• Salesforce shares rose 4% to approximately $188.69 in mid-day trading, with volume 21% above the average.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $249.51, despite targets ranging from $160 to $325.
• Salesforce reported quarterly EPS of $3.88 versus the $3.13 consensus estimate and revenue of $11.13 billion, up 13.3% year over year. The company also pays a quarterly dividend of $0.44, equivalent to a 0.9% yield.

Salesforce Inc. (NYSE:CRM - Get Free Report)'s share price shot up 4% during mid-day trading on Wednesday . The company traded as high as $190.18 and last traded at $188.6870. Approximately 16,739,957 shares traded hands during trading, an increase of 21% from the average daily volume of 13,886,396 shares. The stock had previously closed at $181.50.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on CRM. Roth Capital restated a "buy" rating and issued a $325.00 price target on shares of Salesforce in a research note on Thursday, May 28th. Citizens Jmp restated a "market outperform" rating and set a $315.00 target price on shares of Salesforce in a research report on Thursday, May 28th. Bank of America assumed coverage on shares of Salesforce in a research note on Monday, May 18th. They set an "underperform" rating and a $160.00 price target on the stock. Daiwa Securities Group reduced their price objective on shares of Salesforce from $295.00 to $280.00 and set a "buy" rating for the company in a research note on Tuesday, June 2nd. Finally, Wall Street Zen raised shares of Salesforce from a "hold" rating to a "buy" rating in a report on Saturday, June 6th. Two analysts have rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, sixteen have assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Salesforce has a consensus rating of "Moderate Buy" and a consensus target price of $249.51.

Salesforce Stock Up 4.0%

The firm's fifty day simple moving average is $170.00 and its 200-day simple moving average is $186.08. The company has a market cap of $154.53 billion, a PE ratio of 21.84, a P/E/G ratio of 0.94 and a beta of 1.18. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.15.

Salesforce (NYSE:CRM - Get Free Report) last issued its quarterly earnings data on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.13 by $0.75. Salesforce had a return on equity of 18.72% and a net margin of 18.73%.The firm had revenue of $11.13 billion during the quarter, compared to the consensus estimate of $11.05 billion. During the same period in the previous year, the firm posted $2.58 EPS. The company'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. As a group, equities research analysts expect that Salesforce Inc. will post 10.29 earnings per share for the current fiscal year.

Salesforce Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th were given a $0.44 dividend. This represents a $1.76 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Thursday, June 11th. Salesforce's dividend payout ratio is currently 20.37%.

Institutional Trading of Salesforce

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Commonwealth Retirement Investments LLC purchased a new stake in shares of Salesforce during the fourth quarter worth about $25,000. Key Capital Management INC purchased a new position in shares of Salesforce during the fourth quarter valued at approximately $26,000. Gilpin Wealth Management LLC purchased a new position in shares of Salesforce during the fourth quarter valued at approximately $26,000. Legacy Bridge LLC acquired a new stake in Salesforce during the fourth quarter worth approximately $27,000. Finally, Birchwood Financial Partners Inc. purchased a new stake in Salesforce in the 4th quarter worth approximately $28,000. 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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