Salesforce (NYSE:CRM) Stock Price Down 1.5% Following Insider Selling

Salesforce, Inc. (NYSE:CRM)’s share price traded down 1.5% on Monday after an insider sold shares in the company. The company traded as low as $336.68 and last traded at $338.42. 1,378,509 shares changed hands during mid-day trading, a decline of 79% from the average session volume of 6,431,390 shares. The stock had previously closed at $343.65.

Specifically, COO Brian Millham sold 16,487 shares of the firm’s stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $340.68, for a total value of $5,616,791.16. Following the sale, the chief operating officer now directly owns 1,662 shares in the company, valued at $566,210.16. This trade represents a 90.84 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Parker Harris sold 942 shares of the stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $339.78, for a total value of $320,072.76. Following the completion of the transaction, the insider now owns 120,333 shares in the company, valued at approximately $40,886,746.74. The trade was a 0.78 % decrease in their position. The disclosure for this sale can be found here. In related news, Director G Mason Morfit sold 15,353 shares of the business’s stock in a transaction that occurred on Friday, December 20th. The stock was sold at an average price of $340.55, for a total transaction of $5,228,464.15. Following the completion of the sale, the director now owns 2,898,509 shares in the company, valued at $987,087,239.95. The trade was a 0.53 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website.

Wall Street Analyst Weigh In

A number of analysts have weighed in on CRM shares. TD Cowen raised their price objective on shares of Salesforce from $290.00 to $340.00 and gave the stock a “hold” rating in a report on Thursday, November 21st. Cfra set a $343.00 price target on shares of Salesforce in a research note on Thursday, October 17th. Sanford C. Bernstein upped their price objective on shares of Salesforce from $234.00 to $236.00 and gave the company an “outperform” rating in a research note on Thursday, August 29th. Morgan Stanley lifted their target price on Salesforce from $330.00 to $405.00 and gave the stock an “overweight” rating in a research report on Wednesday, December 4th. Finally, Truist Financial reissued a “buy” rating and issued a $400.00 target price (up from $380.00) on shares of Salesforce in a report on Wednesday, December 4th. Eight investment analysts have rated the stock with a hold rating, thirty have given a buy rating and four have given a strong buy rating to the company’s stock. According to MarketBeat.com, Salesforce has a consensus rating of “Moderate Buy” and an average target price of $378.86.

Salesforce Stock Performance

The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $328.16 billion, a PE ratio of 56.40, a PEG ratio of 3.21 and a beta of 1.30. The stock’s 50 day moving average price is $323.14 and its two-hundred day moving average price is $279.61.

Salesforce (NYSE:CRM) last released its quarterly earnings results on Tuesday, December 3rd. The CRM provider reported $2.41 earnings per share for the quarter, missing analysts’ consensus estimates of $2.44 by ($0.03). The company had revenue of $9.44 billion during the quarter, compared to analyst estimates of $9.35 billion. Salesforce had a return on equity of 12.34% and a net margin of 15.96%. The business’s revenue was up 8.3% compared to the same quarter last year. During the same period last year, the firm earned $1.62 earnings per share. On average, equities analysts expect that Salesforce, Inc. will post 7.48 earnings per share for the current year.

Salesforce Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 9th. Shareholders of record on Wednesday, December 18th will be paid a $0.40 dividend. The ex-dividend date is Wednesday, December 18th. This represents a $1.60 annualized dividend and a yield of 0.47%. Salesforce’s payout ratio is currently 26.32%.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Independent Solutions Wealth Management LLC boosted its stake in Salesforce by 7.3% in the 3rd quarter. Independent Solutions Wealth Management LLC now owns 2,140 shares of the CRM provider’s stock worth $586,000 after buying an additional 145 shares during the last quarter. Legacy Wealth Management LLC MS acquired a new stake in shares of Salesforce in the third quarter worth approximately $210,000. Garden State Investment Advisory Services LLC grew its holdings in Salesforce by 28.0% in the third quarter. Garden State Investment Advisory Services LLC now owns 3,274 shares of the CRM provider’s stock valued at $898,000 after purchasing an additional 717 shares during the period. Copley Financial Group Inc. acquired a new position in Salesforce during the third quarter worth approximately $463,000. Finally, Oddo BHF Asset Management Sas purchased a new position in Salesforce during the third quarter worth approximately $15,894,000. Hedge funds and other institutional investors own 80.43% of the company’s stock.

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.