Salesforce (NYSE:CRM) Shares Down 1.4% Following Analyst Downgrade

Salesforce, Inc. (NYSE:CRM)’s share price traded down 1.4% during trading on Thursday after Loop Capital lowered their price target on the stock from $330.00 to $300.00. Loop Capital currently has a hold rating on the stock. Salesforce traded as low as $292.67 and last traded at $303.08. 7,218,852 shares were traded during mid-day trading, an increase of 12% from the average session volume of 6,463,312 shares. The stock had previously closed at $307.33.

Several other research analysts also recently issued reports on the company. Erste Group Bank raised Salesforce from a “hold” rating to a “buy” rating in a research note on Tuesday, November 19th. Citigroup reaffirmed a “cautious” rating on shares of Salesforce in a research note on Thursday. Barclays lifted their price target on Salesforce from $415.00 to $425.00 and gave the stock an “overweight” rating in a research note on Wednesday, December 4th. TD Cowen raised shares of Salesforce from a “hold” rating to a “buy” rating and boosted their target price for the company from $380.00 to $400.00 in a research note on Friday, January 17th. Finally, Bank of America cut their target price on shares of Salesforce from $440.00 to $400.00 and set a “buy” rating for the company in a research note on Thursday. Two analysts have rated the stock with a sell rating, five have issued a hold rating, thirty-two have given a buy rating and four have given a strong buy rating to the stock. Based on data from MarketBeat, Salesforce has an average rating of “Moderate Buy” and a consensus target price of $365.32.

Insider Transactions at Salesforce

In other Salesforce news, CEO Marc Benioff sold 317,105 shares of the company’s stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $346.78, for a total value of $109,965,671.90. Following the completion of the transaction, the chief executive officer now owns 12,162,457 shares in the company, valued at $4,217,696,838.46. This represents a 2.54 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Sundeep G. Reddy sold 436 shares of the company’s stock in a transaction that occurred on Thursday, January 23rd. The stock was sold at an average price of $332.28, for a total value of $144,874.08. Following the completion of the transaction, the chief accounting officer now owns 7,057 shares of the company’s stock, valued at approximately $2,344,899.96. This represents a 5.82 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,102,572 shares of company stock worth $381,283,706. 3.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Salesforce

Institutional investors and hedge funds have recently bought and sold shares of the stock. Bernard Wealth Management Corp. purchased a new position in Salesforce in the 4th quarter worth approximately $25,000. Infrastructure Capital Advisors LLC acquired a new position in shares of Salesforce in the 3rd quarter valued at approximately $27,000. Accredited Wealth Management LLC acquired a new position in shares of Salesforce in the 4th quarter valued at approximately $27,000. Arlington Trust Co LLC raised its position in shares of Salesforce by 85.1% in the 4th quarter. Arlington Trust Co LLC now owns 87 shares of the CRM provider’s stock valued at $29,000 after purchasing an additional 40 shares in the last quarter. Finally, Compass Financial Services Inc acquired a new position in shares of Salesforce in the 4th quarter valued at approximately $30,000. Hedge funds and other institutional investors own 80.43% of the company’s stock.

Salesforce Stock Performance

The stock has a 50-day simple moving average of $329.11 and a 200-day simple moving average of $307.21. The company has a market capitalization of $284.83 billion, a price-to-earnings ratio of 48.95, a price-to-earnings-growth ratio of 2.58 and a beta of 1.31. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.14.

Salesforce (NYSE:CRM) last announced its earnings results on Tuesday, December 3rd. The CRM provider reported $2.41 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.44 by ($0.03). Salesforce had a net margin of 15.96% and a return on equity of 12.34%. The business had revenue of $9.44 billion during the quarter, compared to analyst estimates of $9.35 billion. During the same period in the previous year, the company earned $1.62 earnings per share. The business’s revenue for the quarter was up 8.3% on a year-over-year basis. On average, analysts anticipate that Salesforce, Inc. will post 7.46 earnings per share for the current year.

Salesforce Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, January 9th. Investors of record on Wednesday, December 18th were given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 0.54%. The ex-dividend date of this dividend was Wednesday, December 18th. Salesforce’s dividend payout ratio is currently 25.16%.

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.