Salesforce (NYSE:CRM) Trading Up 1% - Still a Buy?

Key Points

• Salesforce shares saw a 1% increase during mid-day trading, reaching a last traded price of $270.43, while trading volume dropped significantly by 86% from the average.
• The company reported earnings of $2.58 per share, exceeding estimates, with revenues of $9.83 billion reflecting a 7.6% year-over-year increase.
• Research analysts maintain a consensus rating of "Moderate Buy" for Salesforce, with an average price target of approximately $348.16.
• Salesforce recently announced a quarterly dividend of $0.416, representing a 0.62% yield and a payout ratio of about 26%.

Salesforce Inc. (NYSE:CRM - Get Free Report) shares were up 1% during mid-day trading on Friday . The company traded as high as $270.36 and last traded at $270.43. Approximately 1,029,684 shares traded hands during trading, a decline of 86% from the average daily volume of 7,128,401 shares. The stock had previously closed at $267.70.

Analyst Upgrades and Downgrades

CRM has been the topic of a number of research analyst reports. Morgan Stanley reissued an "overweight" rating and issued a $404.00 price target (up previously from $393.00) on shares of Salesforce in a research note on Thursday, May 29th. Barclays dropped their price target on shares of Salesforce from $425.00 to $347.00 and set an "overweight" rating on the stock in a research note on Thursday, May 29th. Cantor Fitzgerald cut shares of Salesforce from an "overweight" rating to a "cautious" rating in a research note on Thursday, July 10th. Oppenheimer reissued an "outperform" rating and issued a $370.00 price target on shares of Salesforce in a research note on Tuesday, June 10th. Finally, Stephens dropped their price target on shares of Salesforce from $311.00 to $309.00 and set an "equal weight" rating on the stock in a research note on Friday, May 30th. Three analysts have rated the stock with a sell rating, eight have issued a hold rating, twenty-seven have issued a buy rating and four have given a strong buy rating to the company. According to MarketBeat.com, Salesforce presently has a consensus rating of "Moderate Buy" and an average price target of $348.16.

Salesforce Stock Performance

The stock has a market capitalization of $257.68 billion, a PE ratio of 42.17, a price-to-earnings-growth ratio of 2.42 and a beta of 1.36. The firm's fifty day moving average is $268.50 and its 200-day moving average is $284.66. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.14.

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

Salesforce Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, July 10th. Shareholders of record on Wednesday, June 18th were given a $0.416 dividend. This represents a $1.66 annualized dividend and a yield of 0.62%. The ex-dividend date of this dividend was Wednesday, June 18th. Salesforce's dividend payout ratio is currently 25.98%.

Insider Activity

In other Salesforce news, CEO Marc Benioff sold 2,250 shares of Salesforce stock in a transaction dated Wednesday, July 9th. The stock was sold at an average price of $271.69, for a total value of $611,302.50. Following the completion of the transaction, the chief executive officer directly owned 11,862,457 shares of the company's stock, valued at $3,222,910,942.33. The trade was a 0.02% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Srinivas Tallapragada sold 6,697 shares of Salesforce stock in a transaction dated Wednesday, May 14th. The shares were sold at an average price of $295.00, for a total value of $1,975,615.00. Following the completion of the transaction, the insider directly owned 41,422 shares of the company's stock, valued at approximately $12,219,490. This represents a 13.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 33,479 shares of company stock valued at $9,091,796. 3.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Salesforce

A number of large investors have recently made changes to their positions in CRM. Bernard Wealth Management Corp. purchased a new stake in shares of Salesforce during the fourth quarter worth approximately $25,000. Painted Porch Advisors LLC increased its stake 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 buying an additional 65 shares during the period. Accredited Wealth Management LLC purchased a new stake in shares of Salesforce during the fourth quarter worth approximately $27,000. Capital A Wealth Management LLC increased its stake in shares of Salesforce by 450.0% during the first quarter. Capital A Wealth Management LLC now owns 110 shares of the CRM provider's stock worth $30,000 after buying an additional 90 shares during the period. Finally, CBIZ Investment Advisory Services LLC boosted its holdings in Salesforce by 314.8% in the first 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 in the last quarter. 80.43% of the stock is currently owned by hedge funds and other institutional investors.

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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