Salesforce (NYSE:CRM) Shares Down 3.8% - Should You Sell?

Salesforce, Inc. (NYSE:CRM) experienced a decline of 3.8% in its share price on Thursday. The stock hit a low of $328.88 and was last seen trading at $330.01. During the day, roughly 7,471,475 shares changed hands, marking an increase of 19% over the usual daily volume of 6,302,406 shares. The stock had closed at $343.18 the previous day.

Analysts Set New Price Targets

Various research analysts have recently provided updates regarding Salesforce stock. Loop Capital raised its price target for Salesforce from $270.00 to $340.00 while maintaining a "hold" rating as of November 14. On November 20, JPMorgan Chase & Co. increased their price target from $310.00 to $340.00, assigning an "overweight" rating. Phillip Securities maintained a rating of "accumulate" with a target price of $305.00, as confirmed on August 30. Additionally, Truist Financial revised their price target up from $315.00 to $380.00 while endorsing a "buy" rating in a report released recently. Wells Fargo & Company also increased their price target from $275.00 to $330.00, assigning an "equal weight" rating. In total, eight analysts have given shares a hold rating, twenty-eight rated them as a buy, and four issued a strong buy rating. According to MarketBeat.com, Salesforce holds an average rating of "Moderate Buy" along with a consensus price target of $341.89.

Salesforce Trading Performance

Currently, Salesforce has a 50-day moving average price of $299.57 and a 200-day moving average of $269.87. The company has a market capitalization of $315.49 billion, with a price-to-earnings (P/E) ratio of 57.39 and a price-to-earnings growth (P/E/G) ratio of 3.07, indicating growth expectations. The beta stands at 1.29, indicating higher volatility compared to the market. Salesforce's current ratio is 1.04, and its quick ratio is also 1.04, with a debt-to-equity ratio of 0.15.

Salesforce Earnings Results

On August 28, Salesforce released its latest quarterly earnings, reporting earnings per share (EPS) of $2.56, exceeding analysts' estimates of $2.36 by $0.20. Revenue for the quarter totaled $9.33 billion, surpassing anticipated figures of $9.22 billion. The company's return on equity was 12.01%, with a net margin of 15.44%. When compared to the same quarter last year, Salesforce's revenue grew by 8.5%. Analysts predict an EPS of 7.55 for the current fiscal year.

Salesforce Dividend Payment

Salesforce recently declared a quarterly dividend of $0.40, which was disbursed on October 8 to shareholders who were on record as of September 18. This equates to an annual dividend of $1.60, giving a yield of 0.48%. The company's current dividend payout ratio is about 27.83%.

Insider Transactions

In other developments, insider Sabastian Niles sold 2,484 shares of Salesforce on September 11, realizing a total of $608,108.04 at an average price of $244.81. Following this sale, he still holds 828 shares valued at approximately $202,702.68. This transaction reflected a 75.00% decrease in his holdings. Meanwhile, insider Miguel Milano sold 719 shares on November 25 for $246,480.39, at an average price of $342.81. Post-transaction, he holds 4,659 shares worth $1,597,151.79, representing a 13.37% decrease. Over the past three months, insiders have sold 144,510 shares valued at $42,475,538, with company insiders currently owning 3.20% of Salesforce's stock.

Institutional Investment Activity

Several institutional investors have adjusted their holdings in Salesforce. Piscataqua Savings Bank increased its stake by an impressive 2,400.0% during the second quarter, now possessing 100 shares valued at $26,000 after acquiring an additional 96 shares. Infrastructure Capital Advisors LLC entered a new position in Salesforce valued at roughly $27,000 during the third quarter. Clear Investment Research LLC raised their stake by 816.7% in the second quarter, now owning 110 shares worth $28,000 after an additional purchase of 98 shares. Godsey & Gibb Inc. increased their shares by 300.0% during the third quarter and now has a total of 120 shares valued at $33,000 after purchasing 90 additional shares. Finally, Strategic Investment Solutions Inc. IL acquired a new stake worth about $33,000 in Salesforce in the second quarter. Institutional and hedge fund investors currently own about 80.43% of Salesforce's stock.

About Salesforce

Salesforce, Inc. specializes in Customer Relationship Management (CRM) technology, facilitating connections between businesses and their customers worldwide. Their services encompass sales for data management, lead tracking, opportunity forecasting, data analytics, and providing quotes, contracts, and invoices. Additionally, they support businesses in delivering reliable, personalized customer service at scale.

Should You Consider Investing?

Before making any investment decision in Salesforce, it may be valuable to evaluate expert recommendations from top analysts in the market. Fusion of various insights can aid in deciding whether to sell or hold onto your investment.

Salesforce, Stock, Analysis