Stocks

Salesforce (NYSE:CRM) Shares Down 3.8% - Should You Sell?

Published November 29, 2024

Salesforce, Inc. (NYSE:CRM) saw its shares decline by 3.8% on Thursday. The stock dipped to a low of $328.88 before being last traded at $330.01. A total of approximately 7,471,475 shares changed hands during the session, which is a 19% increase compared to the average daily volume of 6,302,406 shares. The previous closing price stood at $343.18.

Analysts Set New Price Targets

Various research analysts have updated their forecasts on Salesforce shares. Loop Capital raised its price target for Salesforce from $270.00 to $340.00, maintaining a "hold" rating in a recent report. JPMorgan Chase & Co. also increased their price objective from $310.00 to $340.00, rating the company as "overweight." Phillip Securities reaffirmed an "accumulate" rating with a target price of $305.00. Truist Financial raised their price target from $315.00 to $380.00, rating Salesforce as a "buy." Wells Fargo & Company increased their target from $275.00 to $330.00 and rated the stock as "equal weight." Overall, eight analysts have assigned a hold rating, twenty-eight have given a buy rating, and four have prescribed a strong buy rating. According to MarketBeat.com, Salesforce currently holds an average rating of "Moderate Buy" with a consensus price target of $341.89.

Salesforce Trading Down 3.8%

Looking at recent performance, Salesforce's stock has a 50-day moving average price of $299.57 and a 200-day moving average price of $269.87. The company boasts a market capitalization of $315.49 billion, along with a price-to-earnings (P/E) ratio standing at 57.39 and a P/E growth (P/E/G) ratio of 3.07. The stock displays a beta of 1.29, indicating higher volatility compared to the market. Furthermore, Salesforce has a current ratio and quick ratio both at 1.04, with a low debt-to-equity ratio of 0.15.

Salesforce Earnings Report

Salesforce last reported its quarterly earnings on August 28. The CRM giant announced earnings of $2.56 per share, surpassing analysts' expectations of $2.36 by $0.20. For that quarter, total revenue reached $9.33 billion, exceeding the anticipated $9.22 billion. The company reported a return on equity of 12.01% and a net margin of 15.44%. Year-over-year, Salesforce's revenue grew by 8.5%. Analysts currently forecast that the company will post $7.55 earnings per share for the ongoing fiscal year.

Salesforce Dividend Announcement

Recently, Salesforce declared a quarterly dividend of $0.40 per share, which was paid on October 8. Shareholders on record as of September 18 received this dividend. The annualized dividend equates to $1.60, giving a yield of 0.48%. Salesforce's current dividend payout ratio stands at 27.83%.

Insider Transactions at Salesforce

In other news, insider Sabastian Niles divested 2,484 shares of Salesforce stock on September 11, selling at an average price of $244.81, totaling approximately $608,108.04. Following this transaction, he retains 828 shares valued at roughly $202,702.68. This sale represented a 75% decrease in his holdings. Furthermore, insider Miguel Milano sold 719 shares of Salesforce stock on November 25 at an average price of $342.81, amounting to about $246,480.39. Milano's remaining shares are valued at around $1,597,151.79, reflecting a decrease in his position by 13.37%. In total, insiders sold 144,510 shares worth approximately $42,475,538 over the last three months, with 3.20% of company stock currently held by insiders.

Hedge Funds Weigh In On Salesforce

In recent developments, several institutional investors have adjusted their positions in Salesforce. Piscataqua Savings Bank boosted its holdings by 2,400% during the second quarter, now owning 100 shares valued at $26,000 after purchase. Infrastructure Capital Advisors LLC acquired a new position valued at around $27,000. Clear Investment Research LLC raised its stake by 816.7%, now owning 110 shares worth $28,000 after recent buying. Godsey & Gibb Inc. increased its holdings by 300% in the third quarter and purchased 120 shares valued at $33,000. Strategic Investment Solutions Inc. IL also picked up a new stake worth approximately $33,000. Roughly 80.43% of Salesforce stock is owned by institutional investors and hedge funds.

About Salesforce

Salesforce, Inc. offers comprehensive Customer Relationship Management (CRM) technology that connects companies and customers on a global scale. Their services include sales tools for data storage, lead tracking, forecasting opportunities, and insights through analytics and AI, as well as customer support solutions for effective and personalized service.