Salesforce (NYSE:CRM) Shares Gap Down - Should You Sell?

Salesforce, Inc. (NYSE:CRM - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $354.00, but opened at $340.90. Salesforce shares last traded at $343.21, with a volume of 1,611,660 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on CRM shares. Canaccord Genuity Group upped their price target on Salesforce from $315.00 to $415.00 and gave the company a "buy" rating in a research report on Wednesday, December 4th. Piper Sandler restated an "overweight" rating and issued a $405.00 price target on shares of Salesforce in a research report on Wednesday, December 18th. BMO Capital Markets lifted their price objective on shares of Salesforce from $385.00 to $425.00 and gave the company an "outperform" rating in a research note on Wednesday, December 4th. The Goldman Sachs Group increased their target price on shares of Salesforce from $360.00 to $400.00 and gave the stock a "buy" rating in a research note on Wednesday, December 4th. Finally, Needham & Company LLC lifted their price target on shares of Salesforce from $375.00 to $400.00 and gave the company a "buy" rating in a research note on Wednesday, January 8th. One research analyst has rated the stock with a sell rating, six have issued a hold rating, thirty-one have issued a buy rating and four have assigned a strong buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $377.63.

Salesforce Stock Down 2.5 %

The business has a 50-day moving average price of $338.53 and a 200 day moving average price of $296.43. The stock has a market capitalization of $330.31 billion, a P/E ratio of 56.81, a P/E/G ratio of 3.01 and a beta of 1.30. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.14.

Salesforce (NYSE:CRM - Get Free Report) last announced its quarterly earnings data on Tuesday, December 3rd. The CRM provider reported $2.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.44 by ($0.03). Salesforce had a return on equity of 12.34% and a net margin of 15.96%. The firm had revenue of $9.44 billion during the quarter, compared to the consensus estimate of $9.35 billion. During the same period in the previous year, the business earned $1.62 EPS. The firm's revenue for the quarter was up 8.3% on a year-over-year basis. On average, equities analysts expect that Salesforce, Inc. will post 7.48 EPS for the current fiscal year.

Salesforce Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, January 9th. Stockholders of record on Wednesday, December 18th were given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.46%. The ex-dividend date of this dividend was Wednesday, December 18th. Salesforce's dividend payout ratio (DPR) is presently 26.32%.

Insider Buying and Selling

In related news, insider Parker Harris sold 3,970 shares of Salesforce stock in a transaction on Tuesday, November 5th. The stock was sold at an average price of $296.74, for a total value of $1,178,057.80. Following the completion of the transaction, the insider now directly owns 119,402 shares in the company, valued at approximately $35,431,349.48. This trade represents a 3.22 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Brian Millham sold 708 shares of the firm's stock in a transaction that occurred on Thursday, January 23rd. The shares were sold at an average price of $332.28, for a total transaction of $235,254.24. Following the completion of the sale, the chief operating officer now directly owns 1,239 shares in the company, valued at approximately $411,694.92. This trade represents a 36.36 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,109,169 shares of company stock worth $383,432,020. 3.20% of the stock is owned by insiders.

Institutional Trading of Salesforce

Institutional investors have recently modified their holdings of the stock. Veritas Asset Management LLP acquired a new position in Salesforce in the third quarter valued at $733,805,000. Jennison Associates LLC grew its holdings in shares of Salesforce by 52.7% during the fourth quarter. Jennison Associates LLC now owns 4,433,785 shares of the CRM provider's stock worth $1,482,347,000 after buying an additional 1,530,572 shares during the last quarter. Swedbank AB raised its stake in Salesforce by 46.7% during the 4th quarter. Swedbank AB now owns 3,829,773 shares of the CRM provider's stock valued at $1,280,408,000 after acquiring an additional 1,219,254 shares during the last quarter. KBC Group NV lifted its position in Salesforce by 171.2% during the 3rd quarter. KBC Group NV now owns 1,634,834 shares of the CRM provider's stock worth $447,470,000 after acquiring an additional 1,032,068 shares during the period. Finally, International Assets Investment Management LLC grew its stake in shares of Salesforce by 23,664.2% in the 3rd quarter. International Assets Investment Management LLC now owns 1,002,848 shares of the CRM provider's stock valued at $274,490,000 after purchasing an additional 998,628 shares during the last quarter. 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.

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