Salesforce (NYSE:CRM) Trading Down 1.5% – What’s Next?

Salesforce Inc. (NYSE:CRM) shares traded down 1.5% on Thursday . The company traded as low as $148.78 and last traded at $150.3940. Approximately 11,246,220 shares changed hands during trading, a decline of 20% from the average daily volume of 14,011,568 shares. The stock had previously closed at $152.76.

Wall Street Analyst Weigh In

CRM has been the subject of a number of research reports. Canaccord Genuity Group reissued a “buy” rating and issued a $225.00 price target on shares of Salesforce in a research note on Tuesday, June 16th. Wells Fargo & Company cut their price objective on Salesforce from $210.00 to $200.00 and set an “equal weight” rating on the stock in a research report on Thursday, May 28th. DA Davidson decreased their target price on Salesforce from $200.00 to $175.00 and set a “neutral” rating for the company in a research report on Thursday, May 28th. Macquarie Infrastructure dropped their price target on Salesforce from $200.00 to $190.00 and set a “neutral” rating on the stock in a research report on Thursday, May 28th. Finally, Jefferies Financial Group reaffirmed a “buy” rating on shares of Salesforce in a research note on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, eleven have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $257.61.

Salesforce Stock Performance

The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.79 and a current ratio of 0.79. The business has a 50-day moving average price of $176.37 and a 200 day moving average price of $202.28. The stock has a market capitalization of $123.17 billion, a P/E ratio of 17.41, a PEG ratio of 0.96 and a beta of 1.16.

Salesforce (NYSE:CRM) last posted its quarterly earnings data on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share for the quarter, beating analysts’ consensus estimates of $3.13 by $0.75. The company had revenue of $11.13 billion during the quarter, compared to analyst estimates of $11.05 billion. Salesforce had a return on equity of 18.72% and a net margin of 18.73%.The firm’s revenue for the quarter was up 13.3% on a year-over-year basis. During the same quarter last year, the company earned $2.58 EPS. Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS. As a group, sell-side analysts forecast that Salesforce Inc. will post 10.29 EPS for the current fiscal year.

Salesforce Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Thursday, June 11th will be paid a $0.44 dividend. The ex-dividend date is Thursday, June 11th. This represents a $1.76 dividend on an annualized basis and a yield of 1.2%. Salesforce’s payout ratio is presently 20.37%.

Salesforce declared that its Board of Directors has initiated a share buyback program on Monday, March 16th that permits the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization permits the CRM provider to buy up to 14.1% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Commonwealth Retirement Investments LLC purchased a new position in Salesforce in the 4th quarter worth approximately $25,000. Board of the Pension Protection Fund purchased a new stake in Salesforce during the 4th quarter valued at $26,000. Key Capital Management INC bought a new stake in shares of Salesforce in the 4th quarter worth $26,000. Gilpin Wealth Management LLC bought a new stake in shares of Salesforce in the 4th quarter worth $26,000. Finally, Legacy Bridge LLC purchased a new position in shares of Salesforce in the fourth quarter worth $27,000. 80.43% of the stock is owned by hedge funds and other institutional investors.

Salesforce Company Profile

Salesforce, founded in 1999 and headquartered in San Francisco, is a global provider of cloud-based software focused on customer relationship management (CRM) and enterprise applications. The company popularized the software-as-a-service (SaaS) model for CRM and has built a broad portfolio of products designed to help organizations manage sales, service, marketing, commerce and analytics through a unified, cloud-first platform.

Core offerings include Sales Cloud for sales automation, Service Cloud for customer support, Marketing Cloud for digital marketing and engagement, and Commerce Cloud for e-commerce.