Salesforce (NYSE:CRM) Shares Up 2.7% – Time to Buy?

Salesforce, Inc. (NYSE:CRM)’s share price traded up 2.7% during mid-day trading on Tuesday . The stock traded as high as $329.94 and last traded at $327.57. Approximately 1,943,676 shares were traded during trading, a decline of 57% from the average session volume of 4,476,940 shares. The stock had previously closed at $319.07.

Analyst Upgrades and Downgrades

CRM has been the subject of several research reports. BMO Capital Markets increased their price objective on shares of Salesforce from $385.00 to $425.00 and gave the company an “outperform” rating in a research note on Wednesday, December 4th. Scotiabank upped their target price on Salesforce from $425.00 to $440.00 and gave the stock a “sector outperform” rating in a report on Wednesday, December 4th. Wedbush reaffirmed an “outperform” rating and set a $425.00 price target on shares of Salesforce in a research note on Wednesday, December 18th. Citigroup raised their target price on Salesforce from $368.00 to $390.00 and gave the stock a “neutral” rating in a research report on Wednesday, December 4th. Finally, Piper Sandler reissued an “overweight” rating and issued a $405.00 price target on shares of Salesforce in a research note on Wednesday, December 18th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating, thirty have given a buy rating and four have assigned a strong buy rating to the company. According to data from MarketBeat.com, Salesforce has an average rating of “Moderate Buy” and an average price target of $376.05.

Salesforce Stock Performance

The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.11 and a current ratio of 1.11. The stock has a market cap of $309.65 billion, a PE ratio of 53.22, a price-to-earnings-growth ratio of 3.21 and a beta of 1.30. The company’s 50 day simple moving average is $336.25 and its 200 day simple moving average is $290.19.

Salesforce (NYSE:CRM) last released its earnings results on Tuesday, December 3rd. The CRM provider reported $2.41 earnings per share for the quarter, missing analysts’ consensus estimates of $2.44 by ($0.03). The company had revenue of $9.44 billion during the quarter, compared to analysts’ expectations of $9.35 billion. Salesforce had a net margin of 15.96% and a return on equity of 12.34%. The firm’s revenue was up 8.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.62 earnings per share. Analysts expect that Salesforce, Inc. will post 7.48 earnings per share for the current year.

Salesforce Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, January 9th. Investors of record on Wednesday, December 18th were issued a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 0.49%. The ex-dividend date of this dividend was Wednesday, December 18th. Salesforce’s dividend payout ratio (DPR) is currently 26.32%.

Insiders Place Their Bets

In related news, CFO Amy E. Weaver sold 897 shares of the firm’s stock in a transaction dated Wednesday, October 23rd. The stock was sold at an average price of $285.29, for a total transaction of $255,905.13. Following the transaction, the chief financial officer now directly owns 52,930 shares of the company’s stock, valued at approximately $15,100,399.70. This trade represents a 1.67 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CAO Sundeep G. Reddy sold 413 shares of the company’s stock in a transaction that occurred on Wednesday, October 23rd. The stock was sold at an average price of $285.29, for a total value of $117,824.77. Following the completion of the sale, the chief accounting officer now directly owns 7,006 shares of the company’s stock, valued at approximately $1,998,741.74. This represents a 5.57 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,177,617 shares of company stock worth $403,542,975 in the last quarter. 3.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Salesforce

Institutional investors have recently made changes to their positions in the business. Infrastructure Capital Advisors LLC purchased a new position in shares of Salesforce in the third quarter worth $27,000. Strategic Investment Solutions Inc. IL bought a new position in shares of Salesforce during the second quarter valued at about $33,000. Godsey & Gibb Inc. boosted its holdings in shares of Salesforce by 300.0% during the third quarter. Godsey & Gibb Inc. now owns 120 shares of the CRM provider’s stock worth $33,000 after purchasing an additional 90 shares during the period. Annapolis Financial Services LLC grew its stake in shares of Salesforce by 135.6% in the third quarter. Annapolis Financial Services LLC now owns 139 shares of the CRM provider’s stock worth $38,000 after purchasing an additional 80 shares during the last quarter. Finally, GHP Investment Advisors Inc. increased its holdings in Salesforce by 38.3% during the 2nd quarter. GHP Investment Advisors Inc. now owns 206 shares of the CRM provider’s stock valued at $53,000 after purchasing an additional 57 shares during the period. Hedge funds and other institutional investors own 80.43% of the company’s stock.

About Salesforce

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.