Salesforce (NYSE:CRM) Trading Down 1.7% - Here's Why

Salesforce, Inc. (NYSE:CRM - Get Free Report)'s stock price dropped 1.7% during trading on Friday . The stock traded as low as $260.92 and last traded at $262.24. Approximately 1,541,760 shares traded hands during trading, a decline of 76% from the average daily volume of 6,550,164 shares. The stock had previously closed at $266.91.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on CRM. Wells Fargo & Company upped their target price on shares of Salesforce from $255.00 to $275.00 and gave the company an "equal weight" rating in a report on Thursday, May 29th. Macquarie reiterated a "neutral" rating and set a $320.00 price target on shares of Salesforce in a research report on Thursday, March 20th. Stephens cut their target price on shares of Salesforce from $311.00 to $309.00 and set an "equal weight" rating on the stock in a research report on Friday, May 30th. Sanford C. Bernstein lifted their price target on shares of Salesforce from $243.00 to $255.00 and gave the stock an "underperform" rating in a report on Thursday, May 29th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $400.00 price target on shares of Salesforce in a report on Wednesday, May 28th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating, twenty-seven have given a buy rating and four have given a strong buy rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $346.34.

Salesforce Trading Down 3.2%

The stock's 50 day simple moving average is $268.09 and its two-hundred day simple moving average is $299.93. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.11 and a quick ratio of 1.11. The stock has a market capitalization of $246.89 billion, a PE ratio of 42.48, a PEG ratio of 2.58 and a beta of 1.38.

Salesforce (NYSE:CRM - Get Free Report) last posted 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 net margin of 15.96% and a return on equity of 12.34%. Salesforce's revenue was up 7.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.44 EPS. On average, sell-side analysts expect that Salesforce, Inc. will post 7.46 EPS for the current year.

Salesforce Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 10th. Stockholders of record on Wednesday, June 18th will be paid a $0.416 dividend. The ex-dividend date of this dividend is Wednesday, June 18th. This represents a $1.66 dividend on an annualized basis and a dividend yield of 0.64%. Salesforce's dividend payout ratio (DPR) is 25.98%.

Insider Activity at Salesforce

In other news, insider Srinivas Tallapragada sold 6,697 shares of the company's stock in a transaction dated Wednesday, May 14th. The shares were sold at an average price of $295.00, for a total transaction of $1,975,615.00. Following the sale, the insider now directly owns 41,422 shares in the company, valued at approximately $12,219,490. This represents a 13.92% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Amy E. Weaver sold 6,221 shares of the company's stock in a transaction dated Monday, March 17th. The shares were sold at an average price of $277.37, for a total transaction of $1,725,518.77. Following the sale, the chief financial officer now owns 46,750 shares in the company, valued at $12,967,047.50. This represents a 11.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 40,332 shares of company stock valued at $11,024,802. Insiders own 3.20% of the company's stock.

Institutional Trading of Salesforce

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CRM. Bernard Wealth Management Corp. purchased a new stake in Salesforce in the 4th quarter worth about $25,000. Accredited Wealth Management LLC bought a new position in Salesforce in the 4th quarter worth about $27,000. Capital A Wealth Management LLC grew its stake in Salesforce by 450.0% in the 1st quarter. Capital A Wealth Management LLC now owns 110 shares of the CRM provider's stock worth $30,000 after acquiring an additional 90 shares in the last quarter. CBIZ Investment Advisory Services LLC grew its stake in Salesforce by 314.8% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 112 shares of the CRM provider's stock worth $30,000 after acquiring an additional 85 shares in the last quarter. Finally, Asset Planning Inc bought a new position in Salesforce in the 4th quarter worth about $31,000. 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.