Salesforce (NYSE:CRM) Trading Up 2.2% – Time to Buy?

Shares of Salesforce, Inc. (NYSE:CRM) shot up 2.2% during mid-day trading on Friday . The stock traded as high as $329.57 and last traded at $326.90. 1,881,796 shares changed hands during mid-day trading, a decline of 61% from the average session volume of 4,813,855 shares. The stock had previously closed at $320.00.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Wedbush reiterated an “outperform” rating and set a $425.00 price target on shares of Salesforce in a report on Wednesday, December 18th. Canaccord Genuity Group raised their target price on Salesforce from $315.00 to $415.00 and gave the company a “buy” rating in a research report on Wednesday, December 4th. Erste Group Bank upgraded shares of Salesforce from a “hold” rating to a “buy” rating in a research note on Tuesday, November 19th. The Goldman Sachs Group upped their price target on shares of Salesforce from $360.00 to $400.00 and gave the company a “buy” rating in a research note on Wednesday, December 4th. Finally, JMP Securities reiterated a “market outperform” rating and issued a $450.00 price objective on shares of Salesforce in a research note on Wednesday, December 18th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating, thirty-one have issued a buy rating and four have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, Salesforce has an average rating of “Moderate Buy” and a consensus target price of $377.63.

Salesforce Trading Up 2.2 %

The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $313.02 billion, a P/E ratio of 53.79, a P/E/G ratio of 2.87 and a beta of 1.30. The stock has a 50 day simple moving average of $337.05 and a 200-day simple moving average of $290.87.

Salesforce (NYSE:CRM) last issued its quarterly earnings results on Tuesday, December 3rd. The CRM provider reported $2.41 earnings per share for the quarter, missing the consensus estimate of $2.44 by ($0.03). The firm had revenue of $9.44 billion for 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%. Salesforce’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.62 EPS. On average, equities research analysts forecast that Salesforce, Inc. will post 7.48 EPS for the current fiscal year.

Salesforce Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, January 9th. Shareholders of record on Wednesday, December 18th were paid a $0.40 dividend. The ex-dividend date was Wednesday, December 18th. This represents a $1.60 annualized dividend and a yield of 0.49%. Salesforce’s payout ratio is 26.32%.

Insider Activity at Salesforce

In related news, CEO Marc Benioff sold 317,105 shares of the firm’s stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $346.78, for a total value of $109,965,671.90. Following the completion of the transaction, the chief executive officer now directly owns 12,162,457 shares of the company’s stock, valued at approximately $4,217,696,838.46. This trade represents a 2.54 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Sundeep G. Reddy sold 413 shares of the company’s stock in a transaction on Wednesday, October 23rd. The shares were sold at an average price of $285.29, for a total transaction of $117,824.77. Following the sale, the chief accounting officer now directly owns 7,006 shares in the company, valued at approximately $1,998,741.74. The trade was a 5.57 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,183,838 shares of company stock valued at $405,595,158. Corporate insiders own 3.20% of the company’s stock.

Institutional Investors Weigh In On Salesforce

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Meiji Yasuda Asset Management Co Ltd. boosted its stake in shares of Salesforce by 11.8% during the 2nd quarter. Meiji Yasuda Asset Management Co Ltd. now owns 18,356 shares of the CRM provider’s stock worth $4,719,000 after purchasing an additional 1,937 shares during the period. Waterloo Capital L.P. lifted its stake in Salesforce by 42.5% in the second quarter. Waterloo Capital L.P. now owns 1,533 shares of the CRM provider’s stock worth $394,000 after purchasing an additional 457 shares during the last quarter. SkyOak Wealth LLC purchased a new position in shares of Salesforce during the second quarter valued at approximately $215,000. First Eagle Investment Management LLC grew its stake in shares of Salesforce by 35.8% during the second quarter. First Eagle Investment Management LLC now owns 2,624,665 shares of the CRM provider’s stock valued at $674,801,000 after buying an additional 692,493 shares during the last quarter. Finally, Venator Management LLC bought a new position in Salesforce in the second quarter worth approximately $643,000. 80.43% of the stock is currently owned by hedge funds and other institutional investors.

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.