Salesforce Stock Price Declines Following Insider Sales

Salesforce, Inc. (NYSE:CRM) saw its stock price decrease by 0.6% during mid-day trading on Thursday, primarily due to insider selling. At one point, the stock fell to $341.03 before ending the day at $342.40. During mid-day trading, the volume of shares traded was 506,766, marking a significant drop of 92% compared to the average session volume of 6,405,269 shares. The previous closing price for Salesforce stock was $344.43.

Specifically, CFO Amy E. Weaver sold 6,221 shares on December 24, realizing an average sale price of $343.00, which amounted to a total value of approximately $2.13 million. Following this transaction, Weaver now holds 53,861 shares, valued at about $18.47 million, which reflects a decrease of 10.35% in her ownership of the company’s stock. Detailed information on this transaction can be found in her filing with the Securities and Exchange Commission (SEC).

Additionally, COO Brian Millham sold 16,487 shares on December 23, with an average price of $340.68 for a total of around $5.62 million. After this sale, Millham owns only 1,662 shares, which are valued at approximately $566,210. This sale represents a drastic decrease of 90.84% in his ownership. Details can again be found in SEC filings. Another insider, Parker Harris, sold 942 shares on December 23 at an average price of $339.78, totaling about $320,073. He now owns 120,333 shares worth around $40.89 million, reflecting a minimal decrease of 0.78% in his stake.

Analyst Ratings

Several financial analysts have recently weighed in on Salesforce’s stock. On December 18, Needham & Company LLC reaffirmed a “buy” rating and issued a price target of $375.00 for the shares. TD Cowen also adjusted its target price from $290.00 to $340.00 while maintaining a “hold” rating as of November 21. Canaccord Genuity Group raised their price objective from $315.00 to $415.00, giving the stock a “buy” rating highlighted in a research note on December 4. Lastly, Jefferies Financial Group increased their price target on Salesforce from $400.00 to $425.00 while retaining a “buy” rating on December 4. Overall, the stock has received positive ratings, with eight investment analysts recommending a hold, thirty issuing buy ratings, and four assigning a strong buy rating. According to MarketBeat, Salesforce holds an average rating of "Moderate Buy" along with an average price target of $378.86.

Salesforce Financial Overview

Salesforce has a debt-to-equity ratio of 0.14 and a quick and current ratio of 1.11. The stock's 50-day moving average stands at $328.28, while the 200-day moving average is $282.57. The company's market capitalization is around $323.90 billion with a price-to-earnings (PE) ratio of 55.67 and a price-to-earnings growth (P/E/G) ratio of 3.21. The stock has a beta value of 1.30, indicating a relatively high volatility.

On December 3, Salesforce reported its quarterly earnings, posting earnings per share (EPS) of $2.41, slightly below the analysts’ expectation of $2.44. Its net margin was 15.96%, and it achieved a return on equity of 12.34%. The firm reported revenues of $9.44 billion, surpassing the projected $9.35 billion, marking an 8.3% increase from the same quarter the previous year. Analysts predict that Salesforce will report about $7.48 in EPS for the current year.

Dividend Information

Salesforce has declared a quarterly dividend of $0.40, which will be paid on January 9. Shareholders registered as of December 18 will receive this dividend, which reflects an annualized rate of $1.60 and represents a yield of 0.47%. The company has a dividend payout ratio of 26.32%.

Institutional Investment Around Salesforce

Numerous hedge funds have recently adjusted their stakes in Salesforce. Veritas Asset Management LLP invested about $733.81 million in the third quarter. Massachusetts Financial Services Co. MA increased its holdings by 48.3% during the second quarter, accumulating a total of 5,906,877 shares valued at approximately $1.52 billion after purchasing an additional 1,922,674 shares. KBC Group NV lifted its stake by 171.2% in the third quarter, now owning 1,634,834 shares valued at $447.47 million. Furthermore, International Assets Investment Management LLC raised its stake by 23,664.2%, reaching ownership of 1,002,848 shares worth $274.49 million. Lastly, Farallon Capital Management LLC increased its position by 51.0% during the second quarter, now holding 2,946,838 shares valued at $757.63 million. Overall, 80.43% of Salesforce stock is owned by institutional investors and hedge funds.

Company Information

Salesforce, Inc. specializes in providing Customer Relationship Management (CRM) technology that connects companies with their customers globally. The company’s services encompass sales data management, lead tracking, opportunity forecasting, analytics, artificial intelligence, and delivering quotes, contracts, and invoices. They also provide exceptional customer support at scale.

Salesforce, Stock, Insider