Salesforce (NYSE:CRM) Shares Down 1.5% on Analyst Downgrade

Salesforce, Inc. (NYSE:CRM)’s stock price was down 1.5% during mid-day trading on Friday after BMO Capital Markets lowered their price target on the stock from $425.00 to $375.00. BMO Capital Markets currently has an outperform rating on the stock. Salesforce traded as low as $312.62 and last traded at $313.74. Approximately 1,719,641 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 6,077,809 shares. The stock had previously closed at $318.43.

Several other analysts also recently issued reports on the company. Piper Sandler restated an “overweight” rating and issued a $405.00 price objective on shares of Salesforce in a research report on Wednesday, December 18th. Canaccord Genuity Group increased their target price on Salesforce from $315.00 to $415.00 and gave the stock a “buy” rating in a research report on Wednesday, December 4th. Erste Group Bank upgraded Salesforce from a “hold” rating to a “buy” rating in a research report on Tuesday, November 19th. Needham & Company LLC reiterated a “buy” rating and set a $400.00 target price on shares of Salesforce in a research report on Thursday, February 6th. Finally, Stifel Nicolaus upped their price target on Salesforce from $390.00 to $425.00 and gave the stock a “buy” rating in a research note on Wednesday, December 4th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating, thirty-two have issued a buy rating and four have issued a strong buy rating to the stock. According to data from MarketBeat.com, Salesforce presently has an average rating of “Moderate Buy” and an average target price of $375.53.

Insider Buying and Selling

In related news, CAO Sundeep G. Reddy sold 436 shares of the stock in a transaction on Thursday, January 23rd. The stock was sold at an average price of $332.28, for a total transaction of $144,874.08. Following the completion of the sale, the chief accounting officer now directly owns 7,057 shares in the company, valued at approximately $2,344,899.96. This trade represents a 5.82 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Amy E. Weaver sold 6,221 shares of the stock in a transaction on Tuesday, December 24th. The stock was sold at an average price of $343.00, for a total value of $2,133,803.00. Following the sale, the chief financial officer now owns 53,861 shares of the company’s stock, valued at approximately $18,474,323. This represents a 10.35 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,102,833 shares of company stock worth $381,389,136. Corporate insiders own 3.20% of the company’s stock.

Hedge Funds Weigh In On Salesforce

Several hedge funds have recently bought and sold shares of the business. Bernard Wealth Management Corp. acquired a new stake in Salesforce during the fourth quarter worth about $25,000. Accredited Wealth Management LLC bought a new position in shares of Salesforce in the fourth quarter valued at approximately $27,000. Arlington Trust Co LLC raised its position in Salesforce by 85.1% in the 4th quarter. Arlington Trust Co LLC now owns 87 shares of the CRM provider’s stock worth $29,000 after purchasing an additional 40 shares during the last quarter. Compass Financial Services Inc bought a new position in Salesforce in the 4th quarter worth approximately $30,000. Finally, Asset Planning Inc bought a new position in Salesforce in the 4th quarter worth approximately $31,000. 80.43% of the stock is owned by institutional investors and hedge funds.

Salesforce Stock Down 3.2 %

The business’s fifty day simple moving average is $334.23 and its 200 day simple moving average is $304.76. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.14. The stock has a market cap of $295.00 billion, a price-to-earnings ratio of 50.65, a price-to-earnings-growth ratio of 2.63 and a beta of 1.31.

Salesforce (NYSE:CRM) last posted its quarterly earnings data on Tuesday, December 3rd. The CRM provider reported $2.41 EPS for the quarter, missing the consensus estimate of $2.44 by ($0.03). The company had revenue of $9.44 billion during the quarter, compared to the consensus estimate of $9.35 billion. Salesforce had a net margin of 15.96% and a return on equity of 12.34%. The company’s revenue was up 8.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.62 earnings per share. Equities analysts forecast that Salesforce, Inc. will post 7.46 earnings per share for the current fiscal year.

Salesforce Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, January 9th. Stockholders of record on Wednesday, December 18th were paid a dividend of $0.40 per share. The ex-dividend date of this dividend was Wednesday, December 18th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.52%. Salesforce’s dividend payout ratio is 26.32%.

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.