Salesforce (NYSE:CRM) Trading Down 2.7% After Analyst Downgrade

Salesforce, Inc. (NYSE:CRM) shares dropped 2.7% on Monday after Jefferies Financial Group lowered their price target on the stock from $425.00 to $375.00. Jefferies Financial Group currently has a buy rating on the stock. Salesforce traded as low as $259.19 and last traded at $262.67. Approximately 1,857,690 shares were traded during trading, a decline of 72% from the average daily volume of 6,624,547 shares. The stock had previously closed at $269.97.

Other equities research analysts also recently issued reports about the stock. Robert W. Baird reduced their price objective on shares of Salesforce from $430.00 to $400.00 and set an “outperform” rating on the stock in a research note on Thursday, February 27th. Canaccord Genuity Group decreased their target price on Salesforce from $415.00 to $400.00 and set a “buy” rating on the stock in a research report on Thursday, February 27th. TD Cowen raised shares of Salesforce from a “hold” rating to a “buy” rating and increased their price objective for the company from $380.00 to $400.00 in a research note on Friday, January 17th. Loop Capital reduced their price objective on Salesforce from $330.00 to $300.00 and set a “hold” rating on the stock in a research report on Thursday, February 27th. Finally, Morgan Stanley increased their target price on Salesforce from $330.00 to $405.00 and gave the company an “overweight” rating in a research report on Wednesday, December 4th. One analyst has rated the stock with a sell rating, five have assigned a hold rating, thirty-one have assigned a buy rating and five have issued a strong buy rating to the company. According to data from MarketBeat, Salesforce currently has an average rating of “Moderate Buy” and a consensus target price of $361.42.

Insider Activity at Salesforce

In other Salesforce news, CFO Amy E. Weaver sold 6,221 shares of the company’s stock in a transaction on Monday, March 17th. The stock was sold at an average price of $277.37, for a total value of $1,725,518.77. Following the completion of the transaction, the chief financial officer now owns 46,750 shares in the company, valued at $12,967,047.50. This represents a 11.74 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Brian Millham sold 708 shares of the firm’s stock in a transaction dated Thursday, January 23rd. The stock was sold at an average price of $332.28, for a total transaction of $235,254.24. Following the sale, the chief operating officer now owns 1,239 shares of the company’s stock, valued at $411,694.92. This trade represents a 36.36 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 45,660 shares of company stock valued at $14,095,336 over the last 90 days. Insiders own 3.20% of the company’s stock.

Hedge Funds Weigh In On Salesforce

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CRM. Fire Capital Management LLC bought a new position in Salesforce in the 4th quarter worth approximately $1,326,000. Fairtree Asset Management Pty Ltd purchased a new stake in shares of Salesforce in the fourth quarter worth about $431,000. M1 Capital Management LLC bought a new position in shares of Salesforce in the fourth quarter valued at approximately $347,000. DSG Capital Advisors LLC purchased a new position in Salesforce during the fourth quarter valued at approximately $3,237,000. Finally, 111 Capital purchased a new stake in Salesforce in the 4th quarter worth approximately $1,808,000. Institutional investors own 80.43% of the company’s stock.

Salesforce Price Performance

The stock has a market capitalization of $253.62 billion, a PE ratio of 43.37, a price-to-earnings-growth ratio of 2.58 and a beta of 1.35. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.11 and a current ratio of 1.11. The business’s 50-day moving average price is $309.39 and its 200 day moving average price is $311.57.

Salesforce Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 24th. Investors of record on Thursday, April 10th will be given a $0.42 dividend. This represents a $1.68 annualized dividend and a dividend yield of 0.64%. This is a boost from Salesforce’s previous quarterly dividend of $0.40. The ex-dividend date is Thursday, April 10th. Salesforce’s dividend payout ratio is 26.10%.

About Salesforce

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.