Salesforce (NYSE:CRM) Stock Price Down 0.4% - Should You Sell?

Salesforce, Inc. (NYSE:CRM) experienced a slight decrease in its share price, trading down 0.4% during mid-day trading on a recent Friday. The stock touched a low of $356.46 before concluding at the same price, with trading volume reaching 1,659,083 shares. This volume marked a substantial drop of 74% compared to its average trading volume of 6,390,628 shares. Previously, the stock closed at $358.03.

Analysts Set New Price Targets

In 2024, analysts remain optimistic about CRM stocks. Several equity research firms have recently published updated reports with revised price targets. For instance, Needham & Company LLC raised their target for Salesforce from $345.00 to $375.00, maintaining a "buy" rating as of December 4th. UBS Group also increased their price target from $275.00 to $360.00 while assigning a "neutral" rating on November 22nd. Similarly, Raymond James lifted their target from $325.00 to $350.00, giving it a "strong-buy" rating on August 29th. DA Davidson revised their target from $250.00 to $300.00, labeling the stock as "neutral" on December 3rd. Macquarie initiated coverage with a "neutral" rating and set a target at $370.00. Overall, eight analysts rate Salesforce as holding, thirty as buying, and four as strong buying. The consensus rating for the stock stands at "Moderate Buy" with an average price target of $377.24.

Salesforce Stock Performance

The company's financial metrics show a debt-to-equity ratio of 0.14, a quick ratio of 1.11, and a current ratio also at 1.11. Its fifty-day moving average price is $316.14, while the 200-day moving average price stands at $275.00. Salesforce has a market capitalization of $338.40 billion and a P/E ratio of 58.63 with a price-to-earnings-growth ratio of 3.21 and a beta of 1.30.

Salesforce Earnings Report

Salesforce recently announced its quarterly earnings on December 3rd. The company reported earnings per share (EPS) of $2.41, which was slightly below analysts' expectations of $2.44, missing by $0.03. The firm achieved a net margin of 15.96% and a return on equity of 12.34%. In terms of revenue, Salesforce generated $9.44 billion for the quarter, exceeding expectations of $9.35 billion. This indicates an 8.3% increase in revenue compared to the same quarter last year, where the EPS was recorded at $1.62 for the prior year. Analysts project that Salesforce will report an EPS of 7.48 for the current fiscal year.

Salesforce Dividend Announcement

Furthermore, Salesforce has announced its upcoming quarterly dividend, which will be distributed on January 9th. Stockholders who are on record by December 18th will receive a $0.40 dividend per share. The ex-dividend date is set for December 18th, leading to an annualized dividend of $1.60 and a dividend yield of 0.45%. Currently, Salesforce's dividend payout ratio is at 26.32%.

Insider Activity

In recent insider news, CAO Sundeep G. Reddy sold 413 shares of Salesforce on October 23rd at an average price of $285.29, totaling $117,824.77. Following the transaction, Reddy retained 7,006 shares valued at approximately $1,998,741.74, reflecting a 5.57% decrease in ownership. Another significant sale was by COO Brian Millham, who sold 60,522 shares on October 29th for $18,156,600. In total, insiders sold 138,498 shares valued at $40,983,349 over the past ninety days, with insiders owning 3.20% of the company's stock.

Institutional Trading of Salesforce

Several institutional investors have recently made adjustments to their stakes in Salesforce. Veritas Asset Management LLP acquired a new stake worth around $733,805,000 in Q3. Massachusetts Financial Services Co. MA increased their holdings by 48.3% during the second quarter, now owning 5,906,877 shares worth $1,518,658,000 after adding 1,922,674 shares. KBC Group NV expanded its holdings by 171.2% in the same period, while International Assets Investment Management LLC saw a staggering rise of 23,664.2%, now owning over 1 million shares. Farallon Capital Management LLC also ramped up their stake by 51%. Institutional and hedge fund ownership of Salesforce currently stands at 80.43%.

Salesforce Company Profile

Salesforce, Inc. provides Customer Relationship Management (CRM) technology that connects companies and customers globally. Their services encompass sales, lead monitoring, analytics, and customer support, enabling businesses to deliver personalized experiences effectively.

Conclusion

With Salesforce's stock showing slight declines and various analysts offering mixed reviews, investors are at a crossroads on whether to sell or hold. Given the company's performance metrics and market trends, prospective investors may want to weigh their options carefully before making decisions.

Salesforce, Stock, Earnings