Salesforce Target of Unusually High Options Trading (NYSE:CRM)

Salesforce Inc. (NYSE:CRM) saw unusually large options trading activity on Wednesday. Stock investors purchased 83,956 put options on the company. This represents an increase of 85% compared to the typical daily volume of 45,458 put options.

Insiders Place Their Bets

In other Salesforce news, CEO Brian Millham sold 3,937 shares of the stock in a transaction that occurred on Monday, March 24th. The shares were sold at an average price of $284.58, for a total transaction of $1,120,391.46. Following the sale, the chief executive officer now directly owns 5,518 shares in the company, valued at $1,570,312.44. This represents a 41.64% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Miguel Milano sold 705 shares of the business’s stock in a transaction on Friday, May 23rd. The stock was sold at an average price of $279.44, for a total transaction of $197,005.20. Following the completion of the transaction, the insider now owns 9,323 shares of the company’s stock, valued at approximately $2,605,219.12. This trade represents a 7.03% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 34,111 shares of company stock worth $9,299,283 over the last three months. Company insiders own 3.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Bernard Wealth Management Corp. acquired a new position in shares of Salesforce during the 4th quarter worth $25,000. Accredited Wealth Management LLC acquired a new position in Salesforce during the fourth quarter worth about $27,000. Capital A Wealth Management LLC increased its holdings in Salesforce by 450.0% in the first quarter. Capital A Wealth Management LLC now owns 110 shares of the CRM provider’s stock valued at $30,000 after buying an additional 90 shares in the last quarter. CBIZ Investment Advisory Services LLC lifted its position in shares of Salesforce by 314.8% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 112 shares of the CRM provider’s stock valued at $30,000 after acquiring an additional 85 shares during the period. Finally, Abound Financial LLC purchased a new stake in shares of Salesforce during the 1st quarter worth approximately $31,000. Institutional investors and hedge funds own 80.43% of the company’s stock.

Salesforce Stock Down 1.4%

Shares of NYSE:CRM opened at $258.98 on Friday. Salesforce has a fifty-two week low of $230.00 and a fifty-two week high of $369.00. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.14. The firm’s 50-day simple moving average is $268.39 and its 200-day simple moving average is $298.23. The company has a market cap of $247.59 billion, a price-to-earnings ratio of 40.53, a PEG ratio of 2.35 and a beta of 1.38.

Salesforce (NYSE:CRM) last announced its quarterly earnings data on Wednesday, May 28th. The CRM provider reported $2.58 EPS for the quarter, beating analysts’ consensus estimates of $2.55 by $0.03. Salesforce had a net margin of 16.08% and a return on equity of 12.94%. The firm had revenue of $9.83 billion during the quarter, compared to the consensus estimate of $9.74 billion. During the same quarter last year, the firm earned $2.44 earnings per share. The firm’s revenue was up 7.6% compared to the same quarter last year. As a group, equities research analysts predict that Salesforce will post 7.46 earnings per share for the current year.

Salesforce Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 10th. Investors of record on Wednesday, June 18th will be paid a $0.416 dividend. The ex-dividend date of this dividend is Wednesday, June 18th. This represents a $1.66 dividend on an annualized basis and a dividend yield of 0.64%. Salesforce’s dividend payout ratio (DPR) is presently 25.98%.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Sanford C. Bernstein lifted their price objective on Salesforce from $243.00 to $255.00 and gave the company an “underperform” rating in a research note on Thursday, May 29th. Canaccord Genuity Group decreased their price objective on shares of Salesforce from $400.00 to $350.00 and set a “buy” rating for the company in a research report on Wednesday, May 28th. Westpark Capital reissued a “buy” rating and issued a $320.00 target price on shares of Salesforce in a report on Wednesday, May 28th. BMO Capital Markets cut their price target on Salesforce from $367.00 to $350.00 and set an “outperform” rating on the stock in a research note on Tuesday, May 27th. Finally, Oppenheimer reaffirmed an “outperform” rating and set a $370.00 price objective on shares of Salesforce in a research report on Tuesday, June 10th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating, twenty-eight have issued a buy rating and four have issued a strong buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $349.08.

Salesforce Company Profile

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.