Salesforce (NYSE:CRM) Shares Up 1.6% After Better-Than-Expected Earnings

Salesforce Inc. (NYSE:CRM)’s share price was up 1.6% on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $239.26 and last traded at $238.4650. Approximately 12,470,397 shares changed hands during trading, an increase of 61% from the average daily volume of 7,724,326 shares. The stock had previously closed at $234.71.

The CRM provider reported $3.25 earnings per share for the quarter, beating the consensus estimate of $2.86 by $0.39. Salesforce had a net margin of 17.91% and a return on equity of 14.41%. The firm had revenue of $10.26 billion for the quarter, compared to analysts’ expectations of $10.27 billion. During the same quarter in the previous year, the company posted $2.41 EPS. The company’s revenue was up 9.1% compared to the same quarter last year. Salesforce has set its Q4 2026 guidance at 3.020-3.040 EPS.

Salesforce Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 8th. Stockholders of record on Thursday, December 18th will be issued a dividend of $0.416 per share. The ex-dividend date is Thursday, December 18th. This represents a $1.66 dividend on an annualized basis and a dividend yield of 0.6%. Salesforce’s dividend payout ratio (DPR) is currently 24.13%.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. Cowen reiterated a “buy” rating on shares of Salesforce in a report on Thursday. Evercore ISI lowered their price target on Salesforce from $360.00 to $340.00 and set an “outperform” rating for the company in a report on Thursday. Royal Bank Of Canada reissued a “sector perform” rating and set a $250.00 price objective on shares of Salesforce in a research report on Thursday. KeyCorp lowered their target price on shares of Salesforce from $440.00 to $400.00 and set an “overweight” rating for the company in a research note on Thursday, September 4th. Finally, Barclays boosted their price target on shares of Salesforce from $316.00 to $330.00 and gave the company an “overweight” rating in a research note on Thursday. Twenty-nine investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $326.54.

Insider Activity at Salesforce

In other Salesforce news, CEO Marc Benioff sold 2,250 shares of the company’s stock in a transaction dated Monday, September 8th. The stock was sold at an average price of $251.12, for a total transaction of $565,020.00. Following the sale, the chief executive officer owned 11,911,571 shares in the company, valued at $2,991,233,709.52. This represents a 0.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Parker Harris sold 134,662 shares of Salesforce stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $234.70, for a total value of $31,605,171.40. Following the completion of the transaction, the insider owned 139,767 shares of the company’s stock, valued at $32,803,314.90. The trade was a 49.07% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 184,284 shares of company stock worth $43,862,999. Company insiders own 3.00% of the company’s stock.

Institutional Investors Weigh In On Salesforce

Several institutional investors have recently modified their holdings of the company. Capital World Investors lifted its stake in Salesforce by 159.0% during the third quarter. Capital World Investors now owns 17,325,206 shares of the CRM provider’s stock worth $4,106,255,000 after purchasing an additional 10,636,161 shares during the last quarter. Norges Bank acquired a new stake in Salesforce during the second quarter worth approximately $2,826,049,000. Nuveen LLC purchased a new stake in shares of Salesforce during the 1st quarter worth approximately $2,039,196,000. Laurel Wealth Advisors LLC lifted its position in shares of Salesforce by 27,361.5% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 3,424,169 shares of the CRM provider’s stock worth $933,737,000 after buying an additional 3,411,700 shares during the last quarter. Finally, Hotchkis & Wiley Capital Management LLC purchased a new position in shares of Salesforce in the 3rd quarter valued at $484,852,000. 80.43% of the stock is owned by hedge funds and other institutional investors.

Salesforce Price Performance

The stock’s 50-day moving average is $243.26 and its 200 day moving average is $252.88. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.12 and a current ratio of 0.98. The stock has a market capitalization of $248.26 billion, a PE ratio of 34.82, a P/E/G ratio of 1.94 and a beta of 1.25.

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.