Salesforce (NYSE:CRM) Shares Up 1.8% – Still a Buy?

Salesforce, Inc. (NYSE:CRM)’s stock price shot up 1.8% during trading on Monday . The stock traded as high as $263.98 and last traded at $262.98. 1,895,235 shares were traded during mid-day trading, a decline of 71% from the average session volume of 6,518,870 shares. The stock had previously closed at $258.40.

Analyst Ratings Changes

A number of equities analysts have weighed in on CRM shares. BMO Capital Markets decreased their price target on Salesforce from $367.00 to $350.00 and set an “outperform” rating for the company in a report on Tuesday, May 27th. Needham & Company LLC restated a “buy” rating and issued a $400.00 target price on shares of Salesforce in a research note on Wednesday, May 28th. Citigroup dropped their price target on shares of Salesforce from $320.00 to $295.00 and set a “neutral” rating on the stock in a research note on Friday, May 30th. Mizuho dropped their target price on Salesforce from $425.00 to $380.00 and set an “outperform” rating on the stock in a research report on Thursday, May 15th. Finally, Erste Group Bank lowered Salesforce from a “buy” rating to a “hold” rating in a research note on Thursday, June 5th. Two analysts have rated the stock with a sell rating, nine have issued a hold rating, twenty-seven have assigned a buy rating and four have assigned a strong buy rating to the company’s stock. According to MarketBeat.com, Salesforce presently has an average rating of “Moderate Buy” and a consensus price target of $346.34.

Salesforce Price 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 company’s 50 day moving average price is $268.09 and its 200-day moving average price is $299.72. The company has a market cap of $251.69 billion, a price-to-earnings ratio of 43.33, a PEG ratio of 2.58 and a beta of 1.38.

Salesforce (NYSE:CRM) last posted its quarterly earnings results on Wednesday, May 28th. The CRM provider reported $2.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.55 by $0.03. Salesforce had a net margin of 15.96% and a return on equity of 12.34%. The firm had revenue of $9.83 billion for the quarter, compared to analyst estimates of $9.74 billion. During the same quarter in the previous year, the business posted $2.44 earnings per share. The firm’s quarterly revenue was up 7.6% compared to the same quarter last year. On average, equities research analysts forecast that Salesforce, Inc. will post 7.46 earnings per share for the current fiscal year.

Salesforce Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 10th. Stockholders of record on Wednesday, June 18th will be issued a dividend of $0.416 per share. The ex-dividend date is Wednesday, June 18th. This represents a $1.66 dividend on an annualized basis and a dividend yield of 0.63%. Salesforce’s dividend payout ratio is currently 25.98%.

Insider Activity at Salesforce

In other news, insider Parker Harris sold 3,273 shares of the business’s stock in a transaction dated Monday, March 24th. The stock was sold at an average price of $284.58, for a total value of $931,430.34. Following the sale, the insider now directly owns 125,146 shares in the company, valued at $35,614,048.68. The trade was a 2.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Brian Millham sold 3,937 shares of the business’s stock in a transaction that occurred on Monday, March 24th. The shares were sold at an average price of $284.58, for a total value of $1,120,391.46. Following the completion of the sale, the chief executive officer now owns 5,518 shares in the company, valued at $1,570,312.44. The trade was a 41.64% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 34,111 shares of company stock worth $9,299,283. 3.20% of the stock is owned by corporate insiders.

Institutional Trading of Salesforce

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Capital Advisors Ltd. LLC raised its position in shares of Salesforce by 4.1% in the 4th quarter. Capital Advisors Ltd. LLC now owns 787 shares of the CRM provider’s stock valued at $263,000 after purchasing an additional 31 shares during the last quarter. Prossimo Advisors LLC raised its position in shares of Salesforce by 1.0% in the fourth quarter. Prossimo Advisors LLC now owns 3,366 shares of the CRM provider’s stock worth $1,125,000 after acquiring an additional 32 shares during the period. Mainstream Capital Management LLC boosted its stake in shares of Salesforce by 0.5% during the 4th quarter. Mainstream Capital Management LLC now owns 6,409 shares of the CRM provider’s stock worth $2,143,000 after acquiring an additional 33 shares in the last quarter. Citizens National Bank Trust Department grew its position in shares of Salesforce by 1.9% during the 4th quarter. Citizens National Bank Trust Department now owns 1,924 shares of the CRM provider’s stock valued at $643,000 after acquiring an additional 35 shares during the period. Finally, Delap Wealth Advisory LLC increased its stake in shares of Salesforce by 2.7% in the 4th quarter. Delap Wealth Advisory LLC now owns 1,336 shares of the CRM provider’s stock valued at $447,000 after purchasing an additional 35 shares in the last quarter. 80.43% of the stock is currently owned by institutional investors and hedge funds.

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.