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

Shares of Salesforce, Inc. (NYSE:CRM) experienced a decline of 3.8% on Thursday, trading at a low of $328.88 before ending the day at $330.01. During the trading session, around 7,471,475 shares changed hands, which is a 19% increase compared to the average daily volume of 6,302,406 shares. The previous closing price was $343.18.

Recent Analyst Assessments

Several analysts have updated their price targets for Salesforce's shares recently. Loop Capital raised their target from $270.00 to $340.00, maintaining a "hold" rating as of November 14th. On November 20th, JPMorgan Chase & Co. increased their target from $310.00 to $340.00 and assigned an "overweight" rating. Phillip Securities confirmed an "accumulate" rating with a price target of $305.00 on August 30th. Truist Financial set a new target at $380.00 with a "buy" rating on the company, while Wells Fargo & Company adjusted their target from $275.00 to $330.00, assigning an "equal weight" rating on November 12th. Overall, eight analysts hold a "hold" rating, twenty-eight have a "buy" rating, and four have recommended a "strong buy". Salesforce currently holds an average rating of "Moderate Buy" and a consensus price target of $341.89 according to MarketBeat.com.

Stock Movement Overview

Recent trading has seen a 3.8% drop in Salesforce's stock value. The company's 50-day moving average stands at $299.57, while the 200-day moving average is $269.87. Salesforce has a market capitalization of approximately $315.49 billion. Its price-to-earnings (P/E) ratio is 57.39, with a price-to-earnings growth (P/E/G) ratio of 3.07, and a beta of 1.29. The company's financial ratios include a current ratio of 1.04, a quick ratio of 1.04, and a debt-to-equity ratio of 0.15.

Earnings Report Insights

Salesforce's last reported quarterly earnings were on August 28th, where they announced an earnings per share (EPS) of $2.56, surpassing analyst expectations of $2.36 by $0.20. The company reported revenues of $9.33 billion for the quarter, exceeding forecasts of $9.22 billion. Salesforce saw a return on equity of 12.01% and a net margin of 15.44%, with year-over-year revenue growth of 8.5%. During the same quarter last year, the company had an EPS of $1.63. Forecasts from analysts suggest that Salesforce is expected to report an EPS of 7.55 for the current fiscal year.

Dividend Declaration

Recently, Salesforce announced a quarterly dividend that was paid to shareholders on October 8th. Shareholders registered as of September 18th received a dividend of $0.40, leading to an annualized payout of $1.60, which reflects a yield of 0.48%. The company has a dividend payout ratio of 27.83%.

Insider Activity

Regarding insider trading, Sabastian Niles, an insider at Salesforce, sold 2,484 shares on September 11th at an average price of $244.81, totaling $608,108.04. This sale represented a 75.00% reduction in Niles’ holdings. Following the sale, he retained 828 shares valued at around $202,702.68. Additionally, insider Miguel Milano sold 719 shares on November 25th at an average price of $342.81, amounting to $246,480.39, which was a 13.37% decrease in his position. In the last three months, insiders have sold a total of 144,510 shares valued at approximately $42,475,538, and currently, insiders hold 3.20% of the company stock.

Institutional Investor Trends

Several institutional investors have recently adjusted their investments in Salesforce. Piscataqua Savings Bank significantly increased its holdings by 2,400.0%, now owning 100 shares valued at $26,000 after acquiring additional shares. Infrastructure Capital Advisors acquired new positions worth about $27,000 in the third quarter. Clear Investment Research also raised its holdings by 816.7%, now owning 110 shares valued at $28,000. Other firms like Godsey & Gibb Inc. and Strategic Investment Solutions Inc. IL also increased their stakes in Salesforce, reflecting a broader trend where 80.43% of the stock is owned by institutional investors.

About Salesforce

Salesforce, Inc. is a leader in customer relationship management (CRM) technology, connecting companies and customers across the globe. Their services assist businesses in managing data, tracking leads, analyzing opportunities, and maintaining customer support at scale through automation and insight-driven analytics.

Conclusion

As Salesforce shares experience a notable decline, investors may ponder whether it's time to sell. With various analysts providing differing perspectives on the stock, alongside significant insider activity and institutional investment trends, careful consideration is vital for current and potential shareholders.

Salesforce, Stock, Investment