Salesforce Inc. (NYSE:CRM) experienced a share price increase of 1.2% on Friday, October 6, 2023, after receiving an upgrade from Wall Street Zen. The firm raised its rating from “hold” to “buy,” prompting the stock to reach a peak of $232.56 before settling at $230.79. During this trading session, approximately 3,691,021 shares changed hands, significantly lower than the average daily trading volume of 7,714,801 shares. The previous day’s closing price stood at $228.15.
Several research firms have also recently provided insights into Salesforce’s stock performance. On September 4, 2023, Sanford C. Bernstein downgraded its target price from $255.00 to $221.00, assigning an “underperform” rating. In contrast, KeyCorp decreased its price objective from $440.00 to $400.00 while maintaining an “overweight” rating. Roth Capital reiterated a “buy” rating with a target price of $395.00 on the same day. Barclays also adjusted its price target from $347.00 to $316.00, keeping an “overweight” rating. Meanwhile, Macquarie reaffirmed a “neutral” rating and set a target price of $250.00 on October 16, 2023.
Analyst ratings reflect a mix of sentiments, with 25 investment analysts rating Salesforce as a “buy,” 13 assigning a “hold” rating, and one giving it a “sell” rating. According to data from MarketBeat, the stock currently holds a consensus rating of “Moderate Buy” with an average target price of $322.86.
Institutional Investor Activity
Recent movements among institutional investors indicate a growing interest in Salesforce. Painted Porch Advisors LLC expanded its stake by 260.0% in the second quarter, acquiring an additional 65 shares to bring its total to 90 shares valued at $25,000. Marquette Asset Management LLC and Evolution Wealth Management Inc. also entered new positions, investing approximately $26,000 and $27,000, respectively, in the third quarter. Texas Capital Bancshares Inc. and CBIZ Investment Advisory Services LLC further acquired new stakes valued at about $28,000 and $30,000, respectively. Presently, institutional investors own approximately 80.43% of Salesforce’s stock.
Salesforce’s financial metrics show a solid foundation for growth. The company reports a debt-to-equity ratio of 0.14, a quick ratio of 1.12, and a current ratio of 1.12. With a market capitalization of $219.71 billion and a price-to-earnings (P/E) ratio of 33.55, Salesforce remains a significant player in the industry. The stock has a price-to-earnings-growth (PEG) ratio of 2.11 and a beta of 1.19, indicating its volatility compared to the market.
Recent Earnings and Dividend Announcements
Salesforce recently announced its earnings results for the quarter ending September 3, 2023. The company reported earnings per share (EPS) of $2.91, surpassing the consensus estimate of $2.78 by $0.13. The firm achieved a net margin of 16.87% and a return on equity of 13.27%. Total revenue for the quarter reached $10.24 billion, exceeding expectations of $10.14 billion. Year-over-year, Salesforce’s revenue grew by 9.8%, up from earnings of $2.56 per share during the same quarter last year. The company has set its fiscal year 2026 guidance at an EPS ranging from 11.330 to 11.370, with a third-quarter estimate between 2.840 and 2.860.
In addition to its financial performance, Salesforce announced a quarterly dividend of $0.416 per share, paid on October 9, 2023. Shareholders of record on September 17, 2023, received this dividend, resulting in an annualized payout of $1.66 and a yield of 0.7%. The company’s dividend payout ratio stands at 24.13%.
Salesforce, Inc. continues to lead in providing Customer Relationship Management (CRM) technology, connecting companies with their customers on a global scale. The firm offers a range of services that include data storage, lead monitoring, opportunity forecasting, and analytics, ensuring companies can deliver personalized customer support efficiently.
