Investors Buy Shares of Salesforce.com Inc. (CRM) on Weakness on Insider Selling
Traders bought shares of Salesforce.com Inc. (NYSE:CRM) on weakness during trading hours on Tuesday after an insider sold shares in the company. $124.82 million flowed into the stock on the tick-up and $77.96 million flowed out of the stock on the tick-down, for a money net flow of $46.86 million into the stock. Of all stocks tracked, Salesforce.com had the 5th highest net in-flow for the day. Salesforce.com traded down ($0.14) for the day and closed at $70.05Specifically, insider Alexandre Dayon sold 2,158 shares of the stock in a transaction that occurred on Monday, September 12th. The shares were sold at an average price of $73.82, for a total value of $159,303.56. Following the sale, the insider now directly owns 17,454 shares in the company, valued at approximately $1,288,454.28. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Chairman Marc Benioff sold 12,500 shares of the stock in a transaction that occurred on Tuesday, September 27th. The shares were sold at an average price of $70.13, for a total transaction of $876,625.00. Following the completion of the sale, the chairman now owns 35,033,000 shares in the company, valued at $2,456,864,290. The disclosure for this sale can be found here. 6.70% of the stock is currently owned by insiders.
A number of brokerages recently weighed in on CRM. Bank of America Corp. reiterated a “buy” rating and issued a $77.82 price target (down from $100.00) on shares of Salesforce.com in a research report on Thursday, August 25th. Jefferies Group restated a “hold” rating and set a $80.00 target price on shares of Salesforce.com in a report on Tuesday, July 12th. Citigroup Inc. dropped their target price on shares of Salesforce.com from $97.00 to $94.00 and set a “buy” rating on the stock in a report on Wednesday, July 20th. Piper Jaffray Cos. restated a “buy” rating and set a $100.00 target price on shares of Salesforce.com in a report on Thursday, September 1st. Finally, Morgan Stanley dropped their target price on shares of Salesforce.com from $110.00 to $107.00 and set an “overweight” rating on the stock in a report on Thursday, September 1st. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and forty-two have given a buy rating to the company. The stock has an average rating of “Buy” and a consensus price target of $92.63.
The stock’s 50-day moving average price is $75.98 and its 200 day moving average price is $77.81. The firm has a market capitalization of $49.06 billion, a PE ratio of 221.05 and a beta of 1.57.
Salesforce.com (NYSE:CRM) last issued its quarterly earnings results on Wednesday, August 31st. The CRM provider reported $0.24 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.02. Salesforce.com had a return on equity of 2.19% and a net margin of 2.91%. The firm had revenue of $2.04 billion for the quarter, compared to the consensus estimate of $2.02 billion. During the same period in the prior year, the business posted $0.19 earnings per share. The company’s revenue for the quarter was up 25.0% on a year-over-year basis. Analysts expect that Salesforce.com Inc. will post $0.95 earnings per share for the current fiscal year.
Several large investors have recently modified their holdings of the company. Cullen Frost Bankers Inc. increased its stake in shares of Salesforce.com by 1.3% in the second quarter. Cullen Frost Bankers Inc. now owns 206,019 shares of the CRM provider’s stock valued at $16,360,000 after buying an additional 2,648 shares during the last quarter. Bank of Montreal Can acquired a new stake in shares of Salesforce.com during the second quarter valued at $31,592,000. Soroban Capital Partners LP acquired a new stake in shares of Salesforce.com during the first quarter valued at $290,380,000. Tybourne Capital Management HK Ltd. acquired a new stake in shares of Salesforce.com during the first quarter valued at $72,518,000. Finally, Thrax Management LLC increased its stake in shares of Salesforce.com by 42.5% in the first quarter. Thrax Management LLC now owns 401,562 shares of the CRM provider’s stock valued at $29,647,000 after buying an additional 119,731 shares during the last quarter. Hedge funds and other institutional investors own 87.23% of the company’s stock.
salesforce.com, inc. is a provider of enterprise cloud computing solutions, with a focus on customer relationship management (CRM). The Company’s Customer Success Platform, including sales force automation, customer service and support, marketing automation, community management, analytics, application development, Internet of Things (IoT) integration and its professional cloud services, provide the next-generation platform of enterprise applications and services.
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