Salesforce (NYSE:CRM) Shares Decline Following Insider Sales

On Friday, shares of Salesforce, Inc. (NYSE:CRM) experienced a decrease of 1.1% following news of insider selling. During the trading session, the stock reached a low of $336.55 before closing at $338.08. A total of 912,109 shares were traded, marking a significant drop of 86% compared to the average volume of 6,395,108 shares. The stock had previously ended the day at $341.72.

Among the recent insider transactions, R. David Schmaier sold 1,785 shares on December 26, fetching an average price of $344.00, which totaled $614,040. As a result of this sale, Schmaier now holds 19,116 shares of Salesforce, valued at approximately $6,575,904, reflecting an 8.54% reduction in his stake. These details have been disclosed in a filing with the SEC.

Furthermore, Amy E. Weaver, the Chief Financial Officer of Salesforce, sold 6,221 shares on December 24 at an average price of $343.00, worth around $2,133,803. After this transaction, Weaver retains 53,861 shares valued at approximately $18,474,323, which is a 10.35% decrease from her previous holdings. This sale has also been reported to the SEC.

Additionally, COO Brian Millham sold 16,487 shares on December 23, at an average price of $340.68, totaling $5,616,791.16. Following the sale, he now owns 1,662 shares, valued at roughly $566,210.16, indicating a drastic decrease of 90.84% in his ownership.

Analyst Ratings and Price Targets

Various research institutions have recently reviewed Salesforce’s stock. For instance, JPMorgan Chase & Co. raised their price target from $340.00 to $380.00 and retained an “overweight” rating on the stock. Truist Financial maintained a “buy” rating and increased their target to $400.00. Wells Fargo upped their price estimate from $275.00 to $330.00 while assigning an “equal weight” rating. The Royal Bank of Canada also increased their price target from $300.00 to $420.00, giving Salesforce an “outperform” rating. Jefferies Financial Group similarly raised their target from $400.00 to $425.00 with a “buy” rating.

In total, eight research analysts recommend holding the stock, thirty have assigned a buy rating, and four have classified it as a strong buy. As per MarketBeat.com, Salesforce holds an average rating of “Moderate Buy” with a consensus target price of $378.86.

Salesforce's Financial Metrics

Salesforce maintains a market capitalization of $323.90 billion with a price-to-earnings (PE) ratio of 55.67. The company’s financial position shows a debt-to-equity ratio of 0.14, a quick ratio of 1.11, and a current ratio of 1.11. Over the past 50 days, the average price has been $328.28, while the 200-day average stands at $282.57.

In its latest quarterly earnings report released on December 3, Salesforce reported earnings per share (EPS) of $2.41, slightly missing the expected $2.44 by $0.03. The revenue for the quarter was $9.44 billion, surpassing the analysts' forecast of $9.35 billion, which marks an increase of 8.3% compared to the previous year. In the same quarter last year, the company had posted an EPS of $1.62. Analysts forecast Salesforce to achieve an EPS of 7.48 for the current fiscal year.

Dividends and Investor Relations

Recently, Salesforce declared a quarterly dividend of $0.40, which will be distributed on January 9 to shareholders recorded on December 18. This equates to an annualized dividend of $1.60, representing a yield of 0.47%. The ex-dividend date for this particular dividend is December 18, with Salesforce currently having a payout ratio of 26.32%.

Institutional Investments

Several institutional investors have adjusted their positions in Salesforce recently. Infrastructure Capital Advisors LLC entered a new stake worth around $27,000 in the third quarter. Clear Investment Research LLC significantly increased their holdings by 816.7% during the second quarter and now owns 110 shares, valued at about $28,000. Strategic Investment Solutions, Inc. also acquired a new stake worth approximately $33,000 during this quarter. Godsey & Gibb increased their holdings by 300.0% in the last quarter, now owning 120 shares valued at $33,000.

Moreover, Annapolis Financial Services LLC raised their position by 135.6% in the third quarter, owning 139 shares valued at $38,000. Currently, institutional shareholders and hedge funds own about 80.43% of the company's stock.

Company Overview

Salesforce, Inc is known for its Customer Relationship Management (CRM) technology that connects businesses with their customers globally. Their services include data storage, lead management, progress tracking, opportunity forecasting, analytics, and delivering quotes and invoices. The company also offers powerful service tools enabling firms to provide personalized customer support on a large scale.

Salesforce, Stock, Insider