Salesforce (NYSE:CRM) Trading Up 2.8% - What's Next?

Key Points

• Salesforce shares rose 2.8% to about $196.28 in mid-day trading, with approximately 13.6 million shares changing hands.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus rating and an average price target of $249.49, despite some recent target reductions.
• Salesforce exceeded quarterly expectations, reporting $3.88 in EPS and $11.13 billion in revenue, while revenue increased 13.3% year over year. The company also pays a quarterly dividend of $0.44, equivalent to a 0.9% yield.

Shares of Salesforce Inc. (NYSE:CRM - Get Free Report) traded up 2.8% on Tuesday . The company traded as high as $199.41 and last traded at $196.2830. Approximately 13,644,005 shares traded hands during mid-day trading, a decline of 0% from the average session volume of 13,661,404 shares. The stock had previously closed at $190.97.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on CRM. Wedbush began coverage on Salesforce in a research note on Wednesday, July 1st. They issued an "outperform" rating for the company. Daiwa Securities Group cut their price target on shares of Salesforce from $295.00 to $280.00 and set a "buy" rating on the stock in a report on Tuesday, June 2nd. Canaccord Genuity Group reissued a "buy" rating and set a $225.00 price target on shares of Salesforce in a research report on Tuesday, June 16th. Evercore restated an "outperform" rating on shares of Salesforce in a research note on Tuesday, July 14th. Finally, Macquarie Infrastructure dropped their price objective on shares of Salesforce from $200.00 to $190.00 and set a "neutral" rating on the stock in a report on Thursday, May 28th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, eighteen have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, Salesforce has an average rating of "Moderate Buy" and a consensus price target of $249.49.

Salesforce Stock Up 2.8%

The stock has a market cap of $160.76 billion, a PE ratio of 22.72, a P/E/G ratio of 1.06 and a beta of 1.16. The business has a 50 day moving average price of $171.58 and a 200 day moving average price of $181.69. 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 announced its quarterly earnings results on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.13 by $0.75. Salesforce had a return on equity of 18.72% and a net margin of 18.73%.The company 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 company posted $2.58 earnings per share. Salesforce's revenue for the quarter was up 13.3% on a year-over-year basis. Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS. Equities research analysts expect that Salesforce Inc. will post 10.27 EPS for the current fiscal year.

Salesforce Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Investors of record on Thursday, June 11th were paid 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 payout ratio is currently 20.37%.

Institutional Trading of Salesforce

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Commonwealth Retirement Investments LLC acquired a new position in shares of Salesforce in the fourth quarter worth about $25,000. Gilpin Wealth Management LLC acquired a new stake in shares of Salesforce during the 4th quarter valued at about $26,000. Birchwood Financial Partners Inc. purchased a new position in shares of Salesforce in the 4th quarter valued at about $28,000. Swiss RE Ltd. purchased a new position in shares of Salesforce in the 4th quarter valued at about $28,000. Finally, Dogwood Wealth Management LLC raised its holdings in Salesforce by 285.7% in the 4th quarter. Dogwood Wealth Management LLC now owns 108 shares of the CRM provider's stock worth $29,000 after purchasing an additional 80 shares during the period. Institutional investors and hedge funds 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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