Salesforce.com Inc (NYSE:CRM) Lowered to “Sell” at Zacks Investment Research
Zacks Investment Research cut shares of Salesforce.com Inc (NYSE:CRM) from a hold rating to a sell rating in a research report sent to investors on Tuesday, July 11th.
According to Zacks, “The leading CRM platform provider, Salesforce has outperformed the broader market on a year-to-date basis. We consider the rapid adoption of the Salesforce1 Customer Platform to be a positive. Overall, the company’s diverse cloud offerings and considerable spending on digital marketing remain catalysts. Additionally, strategic acquisitions and the resultant synergies are anticipated to prove conducive to growth over the long run. In view of increasing customer adoption and satisfactory performances, market research firm, Gartner, acknowledged Salesforce as the leading social CRM solution provider. We believe that the rapid adoption of Salesforce’s platforms indicates solid growth opportunities in the ever-growing cloud computing segment. However, currency fluctuations and stepped-up investments in international expansions and data centers could impact near-term results.”
A number of other brokerages also recently issued reports on CRM. Oppenheimer Holdings, Inc. reissued a hold rating and issued a $100.00 price target (up from $95.00) on shares of Salesforce.com in a report on Friday, May 19th. SunTrust Banks, Inc. assumed coverage on Salesforce.com in a research report on Monday, June 26th. They issued a buy rating and a $110.00 price objective for the company. Robert W. Baird restated an outperform rating and issued a $90.00 price objective on shares of Salesforce.com in a research report on Saturday, March 25th. ValuEngine upgraded Salesforce.com from a sell rating to a hold rating in a research report on Saturday, June 3rd. Finally, Credit Suisse Group started coverage on Salesforce.com in a research report on Thursday, April 27th. They issued an outperform rating and a $110.00 price objective for the company. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating and forty have issued a buy rating to the company. Salesforce.com currently has a consensus rating of Buy and a consensus target price of $97.41.
Salesforce.com (CRM) traded up 0.06% during midday trading on Tuesday, reaching $90.50. 1,895,631 shares of the company traded hands. The stock has a market capitalization of $64.45 billion, a P/E ratio of 478.84 and a beta of 1.29. Salesforce.com has a 1-year low of $66.43 and a 1-year high of $92.13. The firm has a 50-day moving average of $88.60 and a 200-day moving average of $85.06.
Salesforce.com (NYSE:CRM) last announced its quarterly earnings results on Thursday, May 18th. The CRM provider reported $0.28 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.26 by $0.02. Salesforce.com had a return on equity of 1.80% and a net margin of 1.49%. The company had revenue of $2.39 billion during the quarter, compared to the consensus estimate of $2.35 billion. During the same period in the previous year, the company posted $0.24 earnings per share. Salesforce.com’s revenue for the quarter was up 24.6% on a year-over-year basis. On average, analysts predict that Salesforce.com will post $1.30 earnings per share for the current year.
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In other news, CEO Marc Benioff sold 10,000 shares of the stock in a transaction on Tuesday, May 16th. The stock was sold at an average price of $89.80, for a total transaction of $898,000.00. Following the completion of the sale, the chief executive officer now owns 34,195,300 shares in the company, valued at approximately $3,070,737,940. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Parker Harris sold 8,027 shares of the stock in a transaction on Tuesday, August 1st. The shares were sold at an average price of $91.30, for a total value of $732,865.10. Following the sale, the insider now owns 49,913 shares of the company’s stock, valued at approximately $4,557,056.90. The disclosure for this sale can be found here. Insiders sold a total of 1,397,777 shares of company stock valued at $125,569,365 over the last three months. Corporate insiders own 6.70% of the company’s stock.
Hedge funds have recently made changes to their positions in the stock. Peddock Capital Advisors LLC increased its stake in shares of Salesforce.com by 3,000.0% in the second quarter. Peddock Capital Advisors LLC now owns 1,395 shares of the CRM provider’s stock valued at $121,000 after buying an additional 1,350 shares during the period. Shine Investment Advisory Services Inc. bought a new position in Salesforce.com during the second quarter worth $130,000. First Personal Financial Services increased its position in Salesforce.com by 7.5% in the first quarter. First Personal Financial Services now owns 1,611 shares of the CRM provider’s stock worth $133,000 after buying an additional 112 shares during the period. Dubuque Bank & Trust Co. increased its position in Salesforce.com by 387.1% in the first quarter. Dubuque Bank & Trust Co. now owns 1,622 shares of the CRM provider’s stock worth $134,000 after buying an additional 1,289 shares during the period. Finally, Harfst & Associates Inc. bought a new position in Salesforce.com during the first quarter worth $141,000. 85.87% of the stock is currently owned by institutional investors.
Salesforce.com, inc. is a provider of enterprise software, delivered through the cloud, with a focus on customer relationship management (CRM). The Company focuses on cloud, mobile, social, Internet of Things (IoT) and artificial intelligence technologies. The Company’s service offerings are configured and integrated with other platforms and enterprise applications.
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