Salesforce (NYSE:CRM) Stock Price Up 0.5% - Should You Buy?

The stock price of Salesforce, Inc. (NYSE:CRM) increased by 0.5% during mid-day trading on Monday. The stock reached a high of $336.60 and was last seen at $334.62. In total, around 1,515,588 shares were traded during the day, which is a significant drop of 56% from the average daily volume of 3,419,230 shares. The previous closing price for the stock was $332.90.

Wall Street Analyst Opinions

Several research analysts have provided their insights on Salesforce shares. On December 4th, BMO Capital Markets raised their price target for Salesforce from $385.00 to $425.00, giving the company an "outperform" rating. TD Cowen also increased their target from $290.00 to $340.00 with a "hold" rating reported on November 21st. KeyCorp upgraded Salesforce from a "sector weight" rating to an "overweight" rating, setting a target price of $440.00 on December 13th. Similarly, Northland Securities reissued an "outperform" rating with a price target of $440.00, increased from $400.00 on December 4th. Scotiabank also lifted their target price from $425.00 to $440.00 with a "sector outperform" rating. Overall, one analyst rates the stock as a sell, seven as hold, thirty as buy, and four as strong buy. According to data from MarketBeat, Salesforce has an average rating of "Moderate Buy" and a consensus price target of $375.39.

Salesforce's Stock Performance

The current market capitalization of Salesforce stands at $313.78 billion. The company has a price-to-earnings (P/E) ratio of 53.93 and a price/earnings to growth (PEG) ratio of 3.21, indicating growth considerations. Additionally, the beta for the stock is 1.30, suggesting it is slightly more volatile than the broader market. The debt-to-equity ratio is at 0.14, and both quick and current ratios sit at 1.11. Salesforce's fifty-day simple moving average is $332.81, while the two-hundred-day moving average is $286.81.

Recent Earnings Results

Salesforce last released its earnings results on December 3rd. They reported earnings per share (EPS) of $2.41 for the quarter, which was slightly below analysts' expectations of $2.44 by $0.03. The company displayed a return on equity of 12.34% and a net margin of 15.96%. Revenue for the quarter was reported at $9.44 billion, beating the anticipated $9.35 billion, which represents an 8.3% increase year-over-year. Analysts forecast Salesforce will achieve an EPS of 7.48 for the current fiscal year.

Dividend Announcement

Recently, Salesforce declared a quarterly dividend of $0.40, which is scheduled to be paid on January 9th. Shareholders who are on record by December 18th will qualify for this dividend, which means the ex-dividend date falls on the same date. This annualizes to a dividend of $1.60, resulting in a yield of 0.49%. The current payout ratio for dividends stands at 26.32%.

Insider Trading Activity

In insider trading news, Miguel Milano, an insider, sold 719 shares of Salesforce on November 25th at an average price of $342.81, totaling to approximately $246,480.39. After this transaction, he retained 4,659 shares with a value of $1,597,151.79, representing a 13.37% reduction in his holdings. Another insider, Parker Harris, sold 4,200 shares on October 8th at an average of $288.42 for a total of $1,211,364.00. Currently, insiders have sold 1,186,017 shares worth roughly $405,971,793 in the last quarter. Corporate insiders hold about 3.20% of the company’s total shares.

Hedge Fund Activities

Several hedge funds have recently adjusted their stakes in Salesforce. Veritas Asset Management LLP acquired a new stake valued at approximately $733,805,000 in the third quarter. Massachusetts Financial Services Co. MA increased its stake by 48.3% in the second quarter, now holding 5,906,877 shares valued at $1,518,658,000 after purchasing an additional 1,922,674 shares. KBC Group NV raised its investment by 171.2%, owning 1,634,834 shares worth $447,470,000 after acquiring 1,032,068 shares in the same period. International Assets Investment Management LLC boosted their ownership by an astonishing 23,664.2%, bringing their total to 1,002,848 shares now valued at $274,490,000 after purchasing 998,628 new shares. Lastly, Farallon Capital Management LLC increased its position by 51.0% in the second quarter, now owning 2,946,838 shares valued at $757,632,000. Currently, institutional investors account for 80.43% of Salesforce’s ownership.

About Salesforce

Salesforce, Inc. specializes in Customer Relationship Management (CRM) technologies, connecting companies and customers on a global scale. Their services encompass sales processes such as data storage, lead monitoring, opportunity forecasting, insight generation through analytics and AI, and managing quotes, contracts, and invoices. Furthermore, they provide services that allow businesses to deliver reliable and personalized customer support at scale.

Investment Considerations

Before making any investment decisions regarding Salesforce, it's recommended to examine other stock opportunities in the market. Although Salesforce holds a "Moderate Buy" rating among certain analysts, some top-rated analysts highlight five other stocks that they believe to be more promising investment options.

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