Salesforce Stock Price Declines 0.6% Amid Insider Sales

Salesforce, Inc. (NYSE:CRM) saw its share price dip by 0.6% during mid-day trading on Thursday after an insider sold a substantial number of shares. The stock hit a low of $341.03 and ultimately traded at $342.40. Notably, 506,766 shares changed hands during this period, which represents a significant decline of 92% from its average trading volume of 6,405,269 shares. Prior to this, the stock closed at $344.43.

The decline in share price correlates with recent insider transactions, particularly involving CFO Amy E. Weaver, who sold 6,221 shares on December 24th at an average price of $343.00, amounting to a total value of $2,133,803. Following this sale, Weaver's remaining stock ownership decreased by 10.35%, leaving her with 53,861 shares valued at approximately $18,474,323. This transaction was disclosed in a filing made with the Securities and Exchange Commission (SEC).

Additionally, COO Brian Millham also sold shares, offloading 16,487 shares on December 23rd at an average price of $340.68 for a total of $5,616,791.16. Millham's ownership now stands at just 1,662 shares, reflecting a sharp 90.84% decrease. This sale was also filed with the SEC. Another insider, Parker Harris, sold 942 shares on the same day, December 23rd, at an average price of $339.78, resulting in a total transaction of $320,072.76. Harris's remaining shares total 120,333, valued at approximately $40,886,746.74, indicating a 0.78% decrease in ownership.

Analyst Upgrades and Downgrades

Recently, several equities analysts have evaluated Salesforce's stock performance. Needham & Company LLC reaffirmed a "buy" rating, setting a target price of $375.00 in a report published on December 18th. TD Cowen revised their target price upward from $290.00 to $340.00, assigning a "hold" rating on November 21st. In a different assessment, Canaccord Genuity Group increased their price objective from $315.00 to $415.00, maintaining a "buy" rating as of December 4th. Phillip Securities retained an "accumulate" rating with a target price of $305.00 as noted in their report from August 30th. Meanwhile, Jefferies Financial Group elevated their target price from $400.00 to $425.00, also giving Salesforce a "buy" rating as per their December 4th report. Overall, 8 investment analysts have a "hold" rating, 30 have issued a "buy" rating, and 4 have a "strong buy" rating. Accordingly, data from MarketBeat shows an average rating of "Moderate Buy" and a price target of $378.86.

Salesforce Stock Performance Indicators

The company's financial ratios indicate a debt-to-equity ratio of 0.14, along with both a quick ratio and a current ratio of 1.11. Salesforce's average stock price over the last 50 days stands at $328.28, while the 200-day average is at $282.57. The firm has a market capitalization of $323.90 billion and a price-to-earnings (P/E) ratio of 55.67, with a P/E/G ratio of 3.21 and a beta of 1.30.

In its last quarterly earnings statement, announced on December 3rd, Salesforce reported earnings per share (EPS) of $2.41, slightly missing analysts’ expectations of $2.44 by $0.03. The company reported a net margin of 15.96% and a return on equity of 12.34%. It also generated revenues of $9.44 billion during the quarter, slightly surpassing the anticipated figure of $9.35 billion. This revenue signifies an 8.3% year-over-year increase compared to the prior year when they posted an EPS of $1.62. Analysts forecast that Salesforce, Inc. will achieve an EPS of 7.48 for the current fiscal year.

Dividend Announcement

Recently, Salesforce announced a quarterly dividend, which is set to be distributed on January 9th to shareholders recorded as of December 18th. They will receive a dividend of $0.40 per share, equating to an annualized dividend of $1.60, reflecting a yield of 0.47%. The company's current dividend payout ratio (DPR) is 26.32%.

Institutional Investments in Salesforce

Several hedge funds have made strategic moves concerning Salesforce stock. Veritas Asset Management LLP established a new position valued at approximately $733,805,000 during the third quarter. Massachusetts Financial Services Co. MA increased its holdings by 48.3% in the second quarter, now owning 5,906,877 shares worth $1,518,658,000 after acquiring an additional 1,922,674 shares. KBC Group NV bolstered its stake by 171.2% in the third quarter, now possessing 1,634,834 shares worth $447,470,000 after buying another 1,032,068 shares. Meanwhile, International Assets Investment Management LLC expanded its holdings dramatically by 23,664.2%, acquiring 1,002,848 shares valued at $274,490,000. Finally, Farallon Capital Management LLC raised its position by 51.0% in the second quarter, now owning 2,946,838 shares worth $757,632,000. Overall, institutional investors and hedge funds own 80.43% of the stock.

Company Overview

Salesforce, Inc. focuses on providing innovative Customer Relationship Management (CRM) technology created to connect companies with their customers globally. Their offerings include sales tools for managing data, tracking leads and progress, predicting opportunities, and analyzing insights with the use of analytics and artificial intelligence. They also provide customer service solutions enabling businesses to deliver highly personalized and trustworthy support on a larger scale.

Salesforce, Stock, Insider