Salesforce (NYSE:CRM) Trading Down 1.9% - What's Next?

Key Points

• Salesforce's stock declined by 1.9% to $244.53, with trading volume significantly down by 76% compared to average sessions.
• Analyst ratings on Salesforce are varied, with 27 buy ratings and an average price target of $348.16, despite recent price target cuts by some firms.
• Salesforce reported a quarterly revenue of $9.83 billion, surpassing estimates, and announced a dividend of $0.416 per share, reflecting a yield of 0.7%.

Salesforce Inc. (NYSE:CRM - Get Free Report) traded down 1.9% during mid-day trading on Thursday . The stock traded as low as $245.58 and last traded at $244.53. 1,708,508 shares were traded during mid-day trading, a decline of 76% from the average session volume of 7,034,257 shares. The stock had previously closed at $249.17.

Analyst Ratings Changes

Several research analysts recently commented on the stock. Barclays cut their price objective on shares of Salesforce from $425.00 to $347.00 and set an "overweight" rating for the company in a report on Thursday, May 29th. JMP Securities reaffirmed a "market outperform" rating and set a $430.00 target price on shares of Salesforce in a report on Friday, July 11th. Westpark Capital reissued a "buy" rating and issued a $320.00 price target on shares of Salesforce in a report on Wednesday, May 28th. Cantor Fitzgerald cut shares of Salesforce from an "overweight" rating to a "cautious" rating in a research note on Thursday, July 10th. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $400.00 price objective on shares of Salesforce in a research report on Wednesday, May 28th. Three analysts have rated the stock with a sell rating, eight have assigned a hold rating, twenty-seven have given a buy rating and four have assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $348.16.

Salesforce Price Performance

The firm's fifty day simple moving average is $264.50 and its 200-day simple moving average is $280.68. The firm has a market capitalization of $230.04 billion, a PE ratio of 37.66, a PEG ratio of 2.25 and a beta of 1.37. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.14.

Salesforce (NYSE:CRM - Get Free Report) last announced its quarterly earnings data 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. Salesforce had a net margin of 16.08% and a return on equity of 12.94%. The company had revenue of $9.83 billion during the quarter, compared to analyst estimates of $9.74 billion. During the same period in the previous year, the business earned $2.44 EPS. The firm's revenue for the quarter was up 7.6% on a year-over-year basis. On average, research analysts forecast that Salesforce Inc. will post 7.46 earnings per share for the current fiscal 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 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 is 25.98%.

Insider Transactions at Salesforce

In related news, CEO Marc Benioff sold 2,250 shares of the company's stock in a transaction on Monday, August 4th. The stock was sold at an average price of $252.42, for a total transaction of $567,945.00. Following the completion of the sale, the chief executive officer owned 11,911,571 shares in the company, valued at approximately $3,006,718,751.82. This represents a 0.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders have sold a total of 44,229 shares of company stock valued at $11,898,691 in the last 90 days. Company insiders own 3.20% of the company's stock.

Institutional Trading of Salesforce

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Bernard Wealth Management Corp. purchased a new stake in shares of Salesforce in the fourth quarter worth $25,000. Painted Porch Advisors LLC grew its position in shares of Salesforce by 260.0% during the second quarter. Painted Porch Advisors LLC now owns 90 shares of the CRM provider's stock worth $25,000 after purchasing an additional 65 shares in the last quarter. Accredited Wealth Management LLC purchased a new position in Salesforce in the 4th quarter worth approximately $27,000. Capital A Wealth Management LLC boosted 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 purchasing an additional 90 shares during the period. Finally, CBIZ Investment Advisory Services LLC grew its holdings in Salesforce by 314.8% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 112 shares of the CRM provider's stock valued at $30,000 after buying an additional 85 shares in 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.

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