Salesforce (NYSE:CRM) Trading Up 4.7% – Should You Buy?

Shares of Salesforce, Inc. (NYSE:CRM) rose 4.7% on Tuesday . The company traded as high as $366.32 and last traded at $363.31. Approximately 5,243,574 shares were traded during trading, a decline of 10% from the average daily volume of 5,828,735 shares. The stock had previously closed at $347.10.

Analyst Upgrades and Downgrades

CRM has been the topic of a number of research analyst reports. Northland Capmk upgraded Salesforce from a “hold” rating to a “strong-buy” rating in a report on Wednesday, October 2nd. Royal Bank of Canada upped their target price on Salesforce from $300.00 to $420.00 and gave the stock an “outperform” rating in a report on Wednesday, December 4th. Northland Securities reiterated an “outperform” rating and set a $440.00 target price (up previously from $400.00) on shares of Salesforce in a report on Wednesday, December 4th. TD Cowen raised Salesforce from a “hold” rating to a “buy” rating and boosted their price target for the stock from $380.00 to $400.00 in a research report on Friday, January 17th. Finally, Loop Capital boosted their price target on Salesforce from $340.00 to $360.00 and gave the stock a “hold” rating in a research report on Wednesday, December 4th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating, thirty-one have issued a buy rating and four have assigned a strong buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $377.63.

Salesforce Price Performance

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 cap of $344.52 billion, a PE ratio of 59.21, a price-to-earnings-growth ratio of 3.01 and a beta of 1.30. The stock has a 50 day simple moving average of $337.23 and a 200-day simple moving average of $295.28.

Salesforce (NYSE:CRM) last issued its quarterly earnings results on Tuesday, December 3rd. The CRM provider reported $2.41 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.44 by ($0.03). Salesforce had a return on equity of 12.34% and a net margin of 15.96%. The business had revenue of $9.44 billion during the quarter, compared to analysts’ expectations of $9.35 billion. During the same quarter in the previous year, the company posted $1.62 EPS. The company’s quarterly revenue was up 8.3% on a year-over-year basis. Equities analysts anticipate that Salesforce, Inc. will post 7.48 earnings per share for the current fiscal year.

Salesforce Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, January 9th. Shareholders of record on Wednesday, December 18th were issued a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 0.44%. The ex-dividend date of this dividend was Wednesday, December 18th. Salesforce’s dividend payout ratio (DPR) is presently 26.32%.

Insider Buying and Selling at Salesforce

In other news, insider Parker Harris sold 3,970 shares of the firm’s stock in a transaction that occurred on Tuesday, November 5th. The shares were sold at an average price of $296.74, for a total transaction of $1,178,057.80. Following the transaction, the insider now directly owns 119,402 shares of the company’s stock, valued at approximately $35,431,349.48. This trade represents a 3.22 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Sundeep G. Reddy sold 500 shares of the firm’s stock in a transaction that occurred on Friday, November 1st. The stock was sold at an average price of $290.23, for a total transaction of $145,115.00. Following the transaction, the chief accounting officer now directly owns 6,506 shares in the company, valued at approximately $1,888,236.38. This trade represents a 7.14 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,109,169 shares of company stock valued at $383,432,020 in the last 90 days. Insiders own 3.20% of the company’s stock.

Hedge Funds Weigh In On Salesforce

Several institutional investors have recently bought and sold shares of the business. OMC Financial Services LTD increased its holdings in Salesforce by 0.3% during the fourth quarter. OMC Financial Services LTD now owns 11,390 shares of the CRM provider’s stock valued at $3,808,000 after buying an additional 31 shares during the period. Coronation Fund Managers Ltd. increased its holdings in Salesforce by 1.5% during the fourth quarter. Coronation Fund Managers Ltd. now owns 57,543 shares of the CRM provider’s stock valued at $19,238,000 after buying an additional 860 shares during the period. Wealthstar Advisors LLC acquired a new stake in Salesforce in the fourth quarter valued at approximately $625,000. Legacy Financial Strategies LLC acquired a new stake in Salesforce in the fourth quarter valued at approximately $204,000. Finally, Compass Financial Services Inc acquired a new stake in Salesforce in the fourth quarter valued at approximately $30,000. 80.43% of the stock is 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.