Plimoth Trust Co. LLC has bolstered its investment in Salesforce Inc. (NYSE: CRM) by acquiring an additional 2,091 shares, representing an 11.1% increase in its holdings during the third quarter. Following this transaction, the institutional investor now owns a total of 20,956 shares of the cloud-based software provider, contributing to a portfolio value of approximately $4,967,000 at the end of the reporting period. Salesforce constitutes 1.1% of Plimoth Trust Co.’s total holdings, making it the firm’s 25th largest investment.
The recent purchase is part of a broader trend among institutional investors, many of whom have either increased or decreased their stakes in Salesforce. For instance, Painted Porch Advisors LLC significantly raised its holdings by 260% in the second quarter, now owning 90 shares valued at about $25,000. Similarly, Evolution Wealth Management Inc. entered the market with a new position valued at approximately $27,000 during the same quarter. CBIZ Investment Advisory Services LLC also expanded its stake by 314.8%, bringing its total to 112 shares worth $30,000. Other notable increases include Christopher J. Hasenberg Inc., which lifted its holdings by 383.3%, and Maseco LLP, which acquired a new stake valued at around $34,000. Overall, institutional investors and hedge funds currently own 80.43% of Salesforce’s stock.
Wall Street Analysts’ Outlook on Salesforce
Several brokerages have recently provided updated assessments of Salesforce, indicating positive sentiment in the market. Wall Street Zen upgraded the stock from a “hold” to a “buy” rating on November 28, 2023. Conversely, Evercore ISI lowered its price target for the stock from $360.00 to $340.00, maintaining an “outperform” rating. Stifel Nicolaus adjusted its price target down to $300.00 while retaining a “buy” rating, and Robert W. Baird also reduced its target from $325.00 to $315.00.
Currently, one research analyst has assigned a Strong Buy rating to Salesforce, while 29 analysts have given it a Buy rating. Thirteen analysts have rated the stock as a Hold, and one analyst issued a Sell rating. According to data from MarketBeat, the average rating remains a “Moderate Buy,” with a consensus target price set at $326.68.
Insider Transactions and Market Performance
Recent insider trading activity has also captured attention. On December 17, 2023, Director David Blair Kirk purchased 1,936 shares at an average price of $258.64 per share, totaling around $500,727.04. This acquisition increased his ownership in the company by 22.15%, raising his total holdings to 10,677 shares valued at approximately $2,761,499.28.
In contrast, insider Parker Harris sold 134,662 shares on December 2, 2023, at an average price of $234.70, resulting in a total transaction value of $31,605,171.40. Following this sale, Harris’s direct ownership decreased by 49.07%, leaving him with 139,767 shares valued at around $32,803,314.90. Over the past three months, insiders have sold 164,034 shares of Salesforce stock, valued at approximately $38,889,037, while corporate insiders now hold 3.00% of the company’s stock.
As of Monday, Salesforce shares opened at $266.09. The company has faced fluctuations throughout the year, with a 52-week low of $221.96 and a high of $367.09. Salesforce’s market capitalization stands at approximately $249.33 billion, with a price-to-earnings ratio of 35.53.
In its latest earnings report, announced on December 3, 2023, Salesforce reported earnings per share (EPS) of $3.25, surpassing analysts’ expectations of $2.86 by $0.39. The company’s revenue for the quarter reached $10.26 billion, slightly below analyst estimates. Year-over-year, Salesforce’s revenue increased by 9.1%. The company has projected a Q4 2026 EPS guidance between $3.020 and $3.040, with analysts forecasting an annual EPS of $7.46 for the current fiscal year.
In addition to its financial performance, Salesforce has announced a quarterly dividend of $0.416 per share, to be paid on January 8, 2024, to investors of record as of December 18, 2023. This dividend reflects an annualized amount of $1.66 and a yield of 0.6%, with a payout ratio of 22.16%.
Salesforce, established in 1999 and headquartered in San Francisco, is recognized as a leading provider of cloud-based software for customer relationship management (CRM) and enterprise applications, popularizing the software-as-a-service (SaaS) model. Its extensive product portfolio includes tools for sales automation, customer support, digital marketing, and e-commerce.
