Salesforce (NYSE:CRM) Trading Up 3.4% - Still a Buy?

Key Points

• Salesforce shares rose 3.4% on Monday after the company posted results that beat expectations, including $3.81 EPS versus $3.05 expected and revenue of $11.20 billion, up 12.1% year over year.
• The company announced a major $50 billion stock buyback and also raised its quarterly dividend to $0.44 per share, reinforcing management’s confidence in the business and its commitment to shareholder returns.
• Analyst sentiment is mixed: while some see Salesforce as an attractive AI/cloud name, Bank of America initiated coverage with an Underperform rating and a $160 target, adding caution even as the overall consensus remains a Moderate Buy.

Salesforce Inc. (NYSE:CRM - Get Free Report) shares shot up 3.4% on Monday . The stock traded as high as $180.78 and last traded at $179.3920. 13,521,349 shares traded hands during mid-day trading, an increase of 5% from the average session volume of 12,884,109 shares. The stock had previously closed at $173.51.

Salesforce News Roundup

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce announced a $50 billion stock buyback alongside results that beat expectations, which supports the case for shareholder returns and signals management confidence. Salesforce Announces $50 Billion Stock Buyback As Results Beat Targets
• Positive Sentiment: Some market commentary continues to view CRM as a relatively attractive AI/cloud name, citing its steady growth profile and lower valuation versus peers like Oracle. Salesforce vs. Oracle: Which AI-Driven Cloud Stock Is a Better Buy?
• Positive Sentiment: Another Zacks piece highlighted Salesforce as one of several AI-powered software laggards with short-term upside, suggesting investors may still see a rebound opportunity if AI adoption accelerates. Buy 5 AI-Powered Internet Software Laggards for Huge Short-Term Upside
• Neutral Sentiment: CEO Marc Benioff said Salesforce’s Slack AI can help identify employee concerns and surface key decisions, reinforcing the company’s AI narrative, though this is more of a product/technology update than an immediate financial catalyst. Marc Benioff uses AI to find out what employees are complaining about on Slack
• Negative Sentiment: Bank of America initiated coverage with an Underperform rating and a $160 price target, implying downside from current levels and fueling concern that Salesforce’s AI story may be losing momentum. Salesforce is now covered by Bank of America Corporation
• Negative Sentiment: Additional market coverage noted that BofA turned cautious on CRM in morning trading commentary, adding to the bearish analyst tone around the stock. Monday's Morning Movers: Analysts Eye NOW, CRM & LRCX as BRK/B Updates Holdings

Analyst Upgrades and Downgrades

A number of research firms have weighed in on CRM. JPMorgan Chase & Co. dropped their price target on shares of Salesforce from $365.00 to $320.00 and set an "overweight" rating for the company in a research report on Thursday, February 26th. Royal Bank Of Canada lowered their target price on shares of Salesforce from $290.00 to $210.00 and set a "sector perform" rating on the stock in a research note on Thursday, February 26th. Bank of America began coverage on Salesforce in a research note on Monday. They issued an "underperform" rating and a $160.00 price target for the company. DA Davidson lowered their price objective on Salesforce from $235.00 to $200.00 and set a "neutral" rating on the stock in a research report on Friday, February 27th. Finally, Wedbush reaffirmed an "outperform" rating and issued a $375.00 price objective on shares of Salesforce in a research note on Tuesday, February 24th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $274.56.

Salesforce Trading Up 3.4%

The company has a 50-day moving average price of $184.17 and a two-hundred day moving average price of $215.37. The stock has a market cap of $146.78 billion, a P/E ratio of 22.97, a P/E/G ratio of 1.20 and a beta of 1.14. The company has a current ratio of 0.76, a quick ratio of 0.76 and a debt-to-equity ratio of 0.18.

Salesforce (NYSE:CRM - Get Free Report) last issued its quarterly earnings results on Wednesday, February 25th. The CRM provider reported $3.81 EPS for the quarter, beating the consensus estimate of $3.05 by $0.76. Salesforce had a net margin of 17.96% and a return on equity of 15.38%. The company had revenue of $11.20 billion for the quarter, compared to the consensus estimate of $11.18 billion. During the same period in the prior year, the firm posted $2.78 EPS. The firm's revenue was up 12.1% compared to the same quarter last year. Salesforce has set its FY 2027 guidance at 13.110-13.190 EPS and its Q1 2027 guidance at 3.110-3.130 EPS. On average, research analysts expect that Salesforce Inc. will post 9.71 EPS for the current fiscal year.

Salesforce Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, April 23rd. Stockholders of record on Thursday, April 9th were paid a dividend of $0.44 per share. This is a boost from Salesforce's previous quarterly dividend of $0.42. This represents a $1.76 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend was Thursday, April 9th. Salesforce's payout ratio is presently 22.54%.

Salesforce announced that its Board of Directors has initiated a share repurchase plan on Monday, March 16th that permits the company to repurchase $25.00 billion in shares. This repurchase authorization permits the CRM provider to buy up to 14.1% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board believes its shares are undervalued.

Insider Activity at Salesforce

In other news, Director David Blair Kirk purchased 2,570 shares of the business's stock in a transaction dated Wednesday, March 18th. The shares were purchased at an average price of $194.62 per share, for a total transaction of $500,173.40. Following the completion of the purchase, the director owned 13,689 shares in the company, valued at approximately $2,664,153.18. This represents a 23.11% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Laura Alber acquired 2,571 shares of the stock in a transaction that occurred on Thursday, March 19th. The stock was acquired at an average cost of $194.58 per share, with a total value of $500,265.18. Following the completion of the purchase, the director owned 9,530 shares of the company's stock, valued at $1,854,347.40. This trade represents a 36.94% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 3.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Salesforce

Institutional investors have recently bought and sold shares of the company. Commonwealth Retirement Investments LLC purchased a new stake in shares of Salesforce during the fourth quarter valued at $25,000. Board of the Pension Protection Fund purchased a new position in Salesforce in the 4th quarter worth $26,000. Key Capital Management INC acquired a new stake in Salesforce during the 4th quarter worth about $26,000. Gilpin Wealth Management LLC purchased a new stake in Salesforce during the 4th quarter valued at about $26,000. Finally, Legacy Bridge LLC acquired a new position in shares of Salesforce in the fourth quarter valued at about $27,000. 80.43% of the stock is currently owned by institutional investors and hedge funds.

About Salesforce

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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