Salesforce (NYSE:CRM) Trading Down 3% – Here’s Why

Salesforce Inc. (NYSE:CRM)’s stock price fell 3% during trading on Monday . The stock traded as low as $253.09 and last traded at $254.2960. 10,224,661 shares were traded during trading, an increase of 30% from the average session volume of 7,841,404 shares. The stock had previously closed at $262.23.

Wall Street Analysts Forecast Growth

CRM has been the topic of several recent research reports. Bank of America cut their price target on Salesforce from $325.00 to $305.00 and set a “buy” rating on the stock in a report on Monday, November 17th. Mizuho set a $340.00 target price on Salesforce in a research report on Wednesday, December 10th. Evercore ISI reduced their price target on shares of Salesforce from $360.00 to $340.00 and set an “outperform” rating for the company in a report on Thursday, December 4th. Northland Securities upped their price target on shares of Salesforce from $264.00 to $267.00 and gave the stock a “market perform” rating in a research report on Thursday, December 4th. Finally, Piper Sandler reiterated an “overweight” rating on shares of Salesforce in a research report on Thursday, December 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Salesforce has an average rating of “Moderate Buy” and an average target price of $326.68.

Salesforce Stock Up 1.3%

The stock has a market cap of $241.84 billion, a P/E ratio of 34.46, a price-to-earnings-growth ratio of 1.90 and a beta of 1.25. The company has a current ratio of 0.98, a quick ratio of 0.98 and a debt-to-equity ratio of 0.14. The stock’s 50-day moving average is $245.97 and its 200-day moving average is $251.76.

Salesforce (NYSE:CRM) last released its quarterly earnings results on Wednesday, December 3rd. The CRM provider reported $3.25 EPS for the quarter, topping analysts’ consensus estimates of $2.86 by $0.39. The company had revenue of $10.26 billion for the quarter, compared to the consensus estimate of $10.27 billion. Salesforce had a net margin of 17.91% and a return on equity of 14.41%. Salesforce’s revenue was up 9.1% on a year-over-year basis. During the same period in the previous year, the firm earned $2.41 EPS. Salesforce has set its Q4 2026 guidance at 3.020-3.040 EPS. As a group, research analysts anticipate that Salesforce Inc. will post 7.46 earnings per share for the current fiscal year.

Salesforce Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 8th. Stockholders of record on Thursday, December 18th will be issued a $0.416 dividend. The ex-dividend date is Thursday, December 18th. This represents a $1.66 annualized dividend and a dividend yield of 0.6%. Salesforce’s dividend payout ratio is 22.16%.

Insider Buying and Selling

In related news, insider Parker Harris sold 134,662 shares of the business’s stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $234.70, for a total value of $31,605,171.40. Following the sale, the insider directly owned 139,767 shares in the company, valued at $32,803,314.90. The trade was a 49.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Marc Benioff sold 2,250 shares of the firm’s stock in a transaction that occurred on Wednesday, October 15th. The stock was sold at an average price of $238.37, for a total transaction of $536,332.50. Following the sale, the chief executive officer owned 11,911,571 shares of the company’s stock, valued at $2,839,361,179.27. The trade was a 0.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 175,284 shares of company stock valued at $41,648,819 over the last three months. Company insiders own 3.00% of the company’s stock.

Institutional Investors Weigh In On Salesforce

Several large investors have recently modified their holdings of CRM. Capital World Investors lifted its position in shares of Salesforce by 159.0% in the 3rd quarter. Capital World Investors now owns 17,325,206 shares of the CRM provider’s stock valued at $4,106,255,000 after acquiring an additional 10,636,161 shares in the last quarter. Norges Bank acquired a new stake in shares of Salesforce during the second quarter worth approximately $2,826,049,000. Laurel Wealth Advisors LLC grew its position in Salesforce by 27,361.5% during the second quarter. Laurel Wealth Advisors LLC now owns 3,424,169 shares of the CRM provider’s stock valued at $933,737,000 after purchasing an additional 3,411,700 shares in the last quarter. Hotchkis & Wiley Capital Management LLC purchased a new stake in Salesforce in the 3rd quarter worth approximately $484,852,000. Finally, Acadian Asset Management LLC raised its holdings in shares of Salesforce by 1,729.6% during the second quarter. Acadian Asset Management LLC now owns 1,973,141 shares of the CRM provider’s stock worth $538,020,000 after acquiring an additional 1,865,297 shares in the last quarter. 80.43% of the stock is owned by institutional investors.

Salesforce Company Profile

Salesforce, Inc provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company's service includes sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and artificial intelligence, and deliver quotes, contracts, and invoices; and service that enables companies to deliver trusted and highly personalized customer support at scale.