Salesforce (NYSE:CRM) Stock Price Down 2.7% – Should You Sell?

Salesforce, Inc. (NYSE:CRM)’s share price fell 2.7% on Wednesday . The company traded as low as $333.47 and last traded at $334.00. 682,021 shares traded hands during mid-day trading, a decline of 89% from the average session volume of 6,271,541 shares. The stock had previously closed at $343.18.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. Bank of America upped their price objective on shares of Salesforce from $325.00 to $390.00 and gave the stock a “buy” rating in a report on Wednesday, November 13th. Wells Fargo & Company raised their price target on Salesforce from $275.00 to $330.00 and gave the company an “equal weight” rating in a research report on Tuesday, November 12th. Needham & Company LLC reissued a “buy” rating and set a $345.00 price objective on shares of Salesforce in a research report on Friday, September 20th. Morgan Stanley increased their target price on Salesforce from $320.00 to $330.00 and gave the company an “overweight” rating in a research note on Thursday, August 29th. Finally, Wedbush lifted their price target on Salesforce from $325.00 to $375.00 and gave the stock an “outperform” rating in a research report on Monday. Eight research analysts have rated the stock with a hold rating, twenty-eight have given a buy rating and four have given a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $341.89.

Salesforce Trading Down 3.8 %

The company has a market cap of $315.49 billion, a price-to-earnings ratio of 57.39, a price-to-earnings-growth ratio of 3.07 and a beta of 1.29. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.04 and a quick ratio of 1.04. The business has a 50 day simple moving average of $300.85 and a 200 day simple moving average of $270.29.

Salesforce (NYSE:CRM) last issued its quarterly earnings data on Wednesday, August 28th. The CRM provider reported $2.56 EPS for the quarter, topping analysts’ consensus estimates of $2.36 by $0.20. Salesforce had a net margin of 15.44% and a return on equity of 12.01%. The firm had revenue of $9.33 billion for the quarter, compared to analyst estimates of $9.22 billion. During the same quarter in the prior year, the firm earned $1.63 EPS. The company’s revenue was up 8.5% on a year-over-year basis. As a group, equities analysts forecast that Salesforce, Inc. will post 7.55 EPS for the current year.

Salesforce Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, October 8th. Investors of record on Wednesday, September 18th were issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.48%. The ex-dividend date was Wednesday, September 18th. Salesforce’s dividend payout ratio is currently 27.83%.

Insiders Place Their Bets

In related news, insider Parker Harris sold 3,528 shares of the business’s stock in a transaction that occurred on Tuesday, September 3rd. The shares were sold at an average price of $250.59, for a total transaction of $884,081.52. Following the completion of the sale, the insider now directly owns 117,581 shares of the company’s stock, valued at $29,464,622.79. The trade was a 2.91 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider Sabastian Niles sold 2,484 shares of the firm’s stock in a transaction that occurred on Wednesday, September 11th. The shares were sold at an average price of $244.81, for a total transaction of $608,108.04. Following the completion of the transaction, the insider now directly owns 828 shares in the company, valued at approximately $202,702.68. The trade was a 75.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 144,510 shares of company stock valued at $42,475,538. 3.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Virtu Financial LLC bought a new position in Salesforce during the first quarter worth about $859,000. OMC Financial Services LTD bought a new position in Salesforce during the 1st quarter worth approximately $3,415,000. Mosaic Family Wealth Partners LLC grew its holdings in Salesforce by 6.9% during the first quarter. Mosaic Family Wealth Partners LLC now owns 1,044 shares of the CRM provider’s stock valued at $314,000 after purchasing an additional 67 shares during the period. Old Port Advisors bought a new stake in Salesforce in the first quarter valued at approximately $226,000. Finally, Bright Futures Wealth Management LLC. acquired a new stake in Salesforce in the first quarter worth $579,000. 80.43% of the stock is currently owned by institutional investors.

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.