Salesforce (NYSE:CRM) Trading 3.9% Higher on Better-Than-Expected Earnings

Salesforce Inc. (NYSE:CRM)’s stock price was up 3.9% on Thursday following a stronger than expected earnings report. The company traded as high as $248.97 and last traded at $247.92. Approximately 19,926,160 shares traded hands during mid-day trading, an increase of 156% from the average daily volume of 7,784,122 shares. The stock had previously closed at $238.72.

The CRM provider reported $3.25 EPS for the quarter, topping analysts’ consensus estimates of $2.86 by $0.39. Salesforce had a net margin of 17.91% and a return on equity of 14.35%. The business had revenue of $10.26 billion during the quarter, compared to analysts’ expectations of $10.27 billion. During the same quarter in the previous year, the company earned $2.41 earnings per share. The company’s quarterly revenue was up 9.1% on a year-over-year basis. Salesforce has set its Q4 2026 guidance at 3.020-3.040 EPS.

Analysts Set New Price Targets

Several brokerages have recently issued reports on CRM. Mizuho reduced their price target on shares of Salesforce from $350.00 to $340.00 and set an “outperform” rating on the stock in a research report on Monday, November 17th. Deutsche Bank Aktiengesellschaft boosted their target price on Salesforce from $340.00 to $360.00 and gave the stock a “buy” rating in a research note on Thursday. Guggenheim reaffirmed a “neutral” rating on shares of Salesforce in a research report on Thursday. Cowen reissued a “buy” rating on shares of Salesforce in a research report on Thursday. Finally, Oppenheimer reduced their target price on shares of Salesforce from $315.00 to $300.00 and set an “outperform” rating on the stock in a report on Monday. Twenty-nine equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $326.27.

Insider Activity at Salesforce

In related news, insider Parker Harris sold 134,662 shares of Salesforce stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $234.70, for a total transaction of $31,605,171.40. Following the completion of the transaction, the insider directly owned 139,767 shares of the company’s stock, valued at approximately $32,803,314.90. The trade was a 49.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Marc Benioff sold 2,250 shares of the company’s stock in a transaction on Monday, September 8th. The shares were sold at an average price of $251.12, for a total value of $565,020.00. Following the completion of the sale, the chief executive officer directly owned 11,911,571 shares in the company, valued at $2,991,233,709.52. This trade represents a 0.02% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 184,284 shares of company stock valued at $43,862,999 in the last ninety days. Corporate insiders own 3.00% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Capital World Investors raised its holdings in Salesforce by 159.0% in the 3rd quarter. Capital World Investors now owns 17,325,206 shares of the CRM provider’s stock valued at $4,106,255,000 after acquiring an additional 10,636,161 shares during the last quarter. Norges Bank acquired a new position in Salesforce in the second quarter valued at $2,826,049,000. Nuveen LLC purchased a new position in Salesforce during the first quarter worth about $2,039,196,000. Laurel Wealth Advisors LLC lifted its position in Salesforce by 27,361.5% during the second quarter. Laurel Wealth Advisors LLC now owns 3,424,169 shares of the CRM provider’s stock worth $933,737,000 after buying an additional 3,411,700 shares during the period. Finally, Hotchkis & Wiley Capital Management LLC acquired a new stake in Salesforce in the 3rd quarter worth about $484,852,000. Institutional investors and hedge funds own 80.43% of the company’s stock.

Salesforce Stock Up 3.9%

The firm has a fifty day simple moving average of $242.92 and a 200 day simple moving average of $253.07. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.12 and a current ratio of 1.12. The company has a market cap of $236.02 billion, a PE ratio of 33.10, a PEG ratio of 1.87 and a beta of 1.25.

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.