Salesforce (NYSE:CRM) Trading Up 1.6% on Earnings Beat

Salesforce Inc. (NYSE:CRM)’s stock price traded up 1.6% during trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $239.26 and last traded at $238.4650. 12,470,397 shares were traded during trading, an increase of 61% from the average session volume of 7,724,326 shares. The stock had previously closed at $234.71.

The CRM provider reported $3.25 EPS for the quarter, topping the consensus estimate of $2.86 by $0.39. Salesforce had a net margin of 17.91% and a return on equity of 14.41%. The company had revenue of $10.26 billion for the quarter, compared to the consensus estimate of $10.27 billion. During the same period in the previous year, the firm earned $2.41 earnings per share. The firm’s revenue for the quarter was up 9.1% on a year-over-year basis. Salesforce has set its Q4 2026 guidance at 3.020-3.040 EPS.

Salesforce Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 8th. Shareholders of record on Thursday, December 18th will be given a dividend of $0.416 per share. This represents a $1.66 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Thursday, December 18th. Salesforce’s payout ratio is presently 24.13%.

Analysts Set New Price Targets

A number of analysts have recently commented on CRM shares. Sanford C. Bernstein reissued an “underperform” rating on shares of Salesforce in a research report on Thursday. Deutsche Bank Aktiengesellschaft boosted their target price on Salesforce from $340.00 to $360.00 and gave the stock a “buy” rating in a report on Thursday. Wall Street Zen raised Salesforce from a “hold” rating to a “buy” rating in a research note on Friday, November 28th. Citigroup reaffirmed an “outperform” rating on shares of Salesforce in a research report on Thursday. Finally, Wedbush reissued an “outperform” rating and set a $375.00 price objective on shares of Salesforce in a research report on Thursday. Twenty-nine equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $326.54.

Insiders Place Their Bets

In related news, insider Parker Harris sold 134,662 shares of the firm’s stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $234.70, for a total value of $31,605,171.40. Following the sale, the insider owned 139,767 shares in the company, valued at approximately $32,803,314.90. This trade represents a 49.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Marc Benioff sold 2,250 shares of the business’s stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $236.38, for a total transaction of $531,855.00. Following the sale, the chief executive officer owned 11,911,571 shares of the company’s stock, valued at approximately $2,815,657,152.98. This represents a 0.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 184,284 shares of company stock valued at $43,862,999. 3.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Salesforce

Institutional investors and hedge funds have recently bought and sold shares of the stock. Capital World Investors increased its holdings in Salesforce by 159.0% in the 3rd quarter. Capital World Investors now owns 17,325,206 shares of the CRM provider’s stock valued at $4,106,255,000 after acquiring an additional 10,636,161 shares during the last quarter. Norges Bank bought a new position in shares of Salesforce during the 2nd quarter valued at about $2,826,049,000. Nuveen LLC purchased a new position in shares of Salesforce during the first quarter valued at about $2,039,196,000. Laurel Wealth Advisors LLC increased its holdings in shares of Salesforce by 27,361.5% in the second quarter. Laurel Wealth Advisors LLC now owns 3,424,169 shares of the CRM provider’s stock worth $933,737,000 after purchasing an additional 3,411,700 shares during the last quarter. Finally, Hotchkis & Wiley Capital Management LLC purchased a new stake in shares of Salesforce in the third quarter worth about $484,852,000. 80.43% of the stock is currently owned by hedge funds and other institutional investors.

Salesforce Stock Up 5.4%

The business has a 50-day moving average of $243.26 and a 200 day moving average of $252.88. The company has a market capitalization of $248.26 billion, a PE ratio of 34.82, a P/E/G ratio of 1.94 and a beta of 1.25. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.98 and a quick ratio of 1.12.

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.