Salesforce (NYSE:CRM) Shares Gap Up Following Earnings Beat

Salesforce, Inc. (NYSE:CRM)’s share price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $258.90, but opened at $271.01. Salesforce shares last traded at $259.69, with a volume of 5,643,710 shares changing hands.

The CRM provider reported $1.92 EPS for the quarter, beating analysts’ consensus estimates of $1.73 by $0.19. The company had revenue of $9.33 billion for the quarter, compared to analyst estimates of $9.22 billion. Salesforce had a net margin of 15.30% and a return on equity of 11.57%. Salesforce’s quarterly revenue was up 8.5% on a year-over-year basis. During the same period in the previous year, the business posted $1.63 earnings per share.

Salesforce Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, July 25th. Stockholders of record on Tuesday, July 9th were issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 0.62%. The ex-dividend date of this dividend was Tuesday, July 9th. Salesforce’s payout ratio is 28.78%.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the stock. Deutsche Bank Aktiengesellschaft lowered their target price on shares of Salesforce from $350.00 to $300.00 and set a “buy” rating on the stock in a report on Thursday, May 30th. Canaccord Genuity Group lowered their target price on shares of Salesforce from $350.00 to $300.00 and set a “buy” rating on the stock in a report on Thursday, May 30th. Bank of America lifted their target price on shares of Salesforce from $316.00 to $325.00 and gave the company a “buy” rating in a report on Thursday. BMO Capital Markets boosted their price objective on shares of Salesforce from $265.00 to $305.00 and gave the stock an “outperform” rating in a report on Thursday. Finally, Mizuho decreased their price objective on shares of Salesforce from $345.00 to $300.00 and set a “buy” rating on the stock in a report on Thursday, May 30th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating, twenty-five have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $298.03.

Insiders Place Their Bets

In other Salesforce news, Director G Mason Morfit acquired 428,000 shares of the firm’s stock in a transaction on Monday, June 3rd. The stock was bought at an average cost of $233.17 per share, for a total transaction of $99,796,760.00. Following the completion of the purchase, the director now directly owns 3,914,309 shares in the company, valued at $912,699,429.53. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In other news, CEO Marc Benioff sold 15,000 shares of the company’s stock in a transaction on Tuesday, June 4th. The shares were sold at an average price of $235.71, for a total value of $3,535,650.00. Following the completion of the transaction, the chief executive officer now directly owns 12,362,327 shares in the company, valued at $2,913,924,097.17. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director G Mason Morfit bought 428,000 shares of the firm’s stock in a transaction dated Monday, June 3rd. The stock was purchased at an average price of $233.17 per share, with a total value of $99,796,760.00. Following the completion of the purchase, the director now directly owns 3,914,309 shares of the company’s stock, valued at approximately $912,699,429.53. The disclosure for this purchase can be found here. Insiders sold a total of 112,964 shares of company stock worth $27,956,647 over the last ninety days. 3.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Ruedi Wealth Management Inc. raised its holdings in shares of Salesforce by 186.7% during the first quarter. Ruedi Wealth Management Inc. now owns 86 shares of the CRM provider’s stock worth $26,000 after purchasing an additional 56 shares during the period. Signature Resources Capital Management LLC acquired a new stake in shares of Salesforce during the fourth quarter worth $26,000. Piscataqua Savings Bank raised its holdings in shares of Salesforce by 2,400.0% during the second quarter. Piscataqua Savings Bank now owns 100 shares of the CRM provider’s stock worth $26,000 after purchasing an additional 96 shares during the period. Red Tortoise LLC acquired a new stake in shares of Salesforce during the first quarter worth $33,000. Finally, Clear Investment Research LLC raised its holdings in shares of Salesforce by 816.7% during the second quarter. Clear Investment Research LLC now owns 110 shares of the CRM provider’s stock worth $28,000 after purchasing an additional 98 shares during the period. 80.43% of the stock is currently owned by institutional investors.

Salesforce Stock Up 0.3 %

The company has a market capitalization of $251.56 billion, a price-to-earnings ratio of 46.79, a PEG ratio of 2.22 and a beta of 1.29. The stock’s fifty day simple moving average is $253.44 and its two-hundred day simple moving average is $271.63. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.11 and a quick ratio of 1.11.

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.