Traders Buy Large Volume of Salesforce Call Options (NYSE:CRM)

Salesforce Inc. (NYSE:CRM) was the target of some unusual options trading on Friday. Traders purchased 90,805 call options on the stock. Thisisanincreaseof92% compared to the typical volume of 47,172 call options.

Salesforce Trading Up 4.0%

Shares of Salesforce stock opened at $242.78 on Friday. The stock has a market cap of $232.10 billion, a P/E ratio of 37.99, a P/E/G ratio of 2.12 and a beta of 1.37. The stock’s 50 day simple moving average is $260.41 and its 200-day simple moving average is $275.84. Salesforce has a 1-year low of $226.48 and a 1-year high of $369.00. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.07 and a quick ratio of 1.07.

Salesforce (NYSE:CRM) last issued its earnings results on Wednesday, May 28th. The CRM provider reported $2.58 earnings per share for the quarter, topping the consensus estimate of $2.55 by $0.03. Salesforce had a return on equity of 12.94% and a net margin of 16.08%. The business had revenue of $9.83 billion for the quarter, compared to analysts’ expectations of $9.74 billion. During the same period in the previous year, the firm posted $2.44 EPS. The business’s revenue for the quarter was up 7.6% compared to the same quarter last year. Analysts predict that Salesforce will post 7.46 EPS for the current fiscal year.

Salesforce Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, July 10th. Shareholders of record on Wednesday, June 18th were paid a dividend of $0.416 per share. This represents a $1.66 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Wednesday, June 18th. Salesforce’s dividend payout ratio is 25.98%.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on CRM shares. Morgan Stanley reiterated an “overweight” rating and issued a $404.00 price target (up from $393.00) on shares of Salesforce in a report on Thursday, May 29th. Barclays cut their price target on Salesforce from $425.00 to $347.00 and set an “overweight” rating on the stock in a report on Thursday, May 29th. Wells Fargo & Company lifted their price target on Salesforce from $255.00 to $275.00 and gave the company an “equal weight” rating in a report on Thursday, May 29th. Needham & Company LLC reissued a “buy” rating and issued a $400.00 price objective on shares of Salesforce in a research report on Wednesday, May 28th. Finally, Cantor Fitzgerald cut Salesforce from an “overweight” rating to a “cautious” rating in a research report on Thursday, July 10th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating, twenty-seven have given a buy rating and four have given a strong buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $347.50.

Insider Activity

In other news, CEO Marc Benioff sold 2,250 shares of the stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $234.64, for a total value of $527,940.00. Following the sale, the chief executive officer directly owned 11,911,571 shares in the company, valued at approximately $2,794,931,019.44. This represents a 0.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Over the last three months, insiders sold 46,532 shares of company stock valued at $12,082,694. 3.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Bernard Wealth Management Corp. purchased a new stake in shares of Salesforce during the fourth quarter worth $25,000. Accredited Wealth Management LLC purchased a new position in shares of Salesforce during the fourth quarter worth about $27,000. Painted Porch Advisors LLC grew its holdings in shares of Salesforce by 260.0% during the second quarter. Painted Porch Advisors LLC now owns 90 shares of the CRM provider’s stock worth $25,000 after purchasing an additional 65 shares during the last quarter. Wood Tarver Financial Group LLC purchased a new position in shares of Salesforce during the fourth quarter worth about $35,000. Finally, Capital A Wealth Management LLC grew its holdings in shares of Salesforce by 450.0% during the first quarter. Capital A Wealth Management LLC now owns 110 shares of the CRM provider’s stock worth $30,000 after buying an additional 90 shares during the last quarter. 80.43% of the stock is currently owned by institutional investors and hedge funds.

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.