Compass Capital Management Inc. Cuts Position in Salesforce Inc. $CRM

Compass Capital Management Inc. cut its stake in Salesforce Inc. (NYSE:CRM) by 12.1% in the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 37,587 shares of the CRM provider’s stock after selling 5,172 shares during the period. Compass Capital Management Inc.’s holdings in Salesforce were worth $9,957,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in CRM. Vanguard Group Inc. lifted its stake in Salesforce by 0.3% in the fourth quarter. Vanguard Group Inc. now owns 89,843,166 shares of the CRM provider’s stock worth $23,800,353,000 after purchasing an additional 270,913 shares during the last quarter. State Street Corp lifted its stake in Salesforce by 0.3% in the third quarter. State Street Corp now owns 49,420,657 shares of the CRM provider’s stock worth $11,732,966,000 after purchasing an additional 159,739 shares during the last quarter. Capital International Investors lifted its stake in Salesforce by 13.3% in the fourth quarter. Capital International Investors now owns 22,721,010 shares of the CRM provider’s stock worth $6,019,199,000 after purchasing an additional 2,669,891 shares during the last quarter. Geode Capital Management LLC lifted its stake in Salesforce by 3.8% in the fourth quarter. Geode Capital Management LLC now owns 21,782,556 shares of the CRM provider’s stock worth $5,751,073,000 after purchasing an additional 791,345 shares during the last quarter. Finally, Capital World Investors lifted its stake in Salesforce by 13.5% in the fourth quarter. Capital World Investors now owns 19,672,684 shares of the CRM provider’s stock worth $5,211,515,000 after purchasing an additional 2,347,478 shares during the last quarter. 80.43% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Citizens Jmp reissued a “market outperform” rating and issued a $315.00 price target on shares of Salesforce in a research note on Thursday, May 28th. Royal Bank Of Canada reissued a “neutral” rating on shares of Salesforce in a research note on Thursday, June 4th. Morgan Stanley lowered their price target on shares of Salesforce from $398.00 to $287.00 and set an “overweight” rating for the company in a research note on Monday, February 23rd. BTIG Research reissued a “buy” rating and issued a $255.00 price target on shares of Salesforce in a research note on Tuesday, May 26th. Finally, Barclays lowered their price target on shares of Salesforce from $252.00 to $236.00 and set an “overweight” rating for the company in a research note on Thursday, May 28th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $259.26.

Salesforce Price Performance

Shares of NYSE CRM opened at $166.81 on Friday. Salesforce Inc. has a 1 year low of $163.31 and a 1 year high of $276.80. The company has a debt-to-equity ratio of 1.15, a current ratio of 0.79 and a quick ratio of 0.79. The company’s 50-day moving average is $180.50 and its 200 day moving average is $207.18. The stock has a market capitalization of $136.61 billion, a P/E ratio of 19.31, a P/E/G ratio of 1.06 and a beta of 1.16.

Salesforce (NYSE:CRM) last announced its quarterly earnings results on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.13 by $0.75. Salesforce had a net margin of 18.73% and a return on equity of 18.72%. The company had revenue of $11.13 billion for the quarter, compared to analysts’ expectations of $11.05 billion. During the same quarter in the previous year, the company earned $2.58 earnings per share. Salesforce’s quarterly revenue was up 13.3% on a year-over-year basis. Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS. On average, sell-side analysts expect that Salesforce Inc. will post 10.3 earnings per share for the current year.

Salesforce Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Thursday, June 11th will be given a dividend of $0.44 per share. The ex-dividend date is Thursday, June 11th. This represents a $1.76 annualized dividend and a dividend yield of 1.1%. Salesforce’s payout ratio is currently 20.37%.

Salesforce announced that its Board of Directors has authorized a share buyback program on Monday, March 16th that allows the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization allows the CRM provider to buy up to 14.1% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its shares are undervalued.

Insider Activity

In related news, Director Laura Alber purchased 2,571 shares of Salesforce stock in a transaction that occurred on Thursday, March 19th. The shares were bought at an average price of $194.58 per share, for a total transaction of $500,265.18. Following the completion of the transaction, the director directly owned 9,530 shares of the company’s stock, valued at $1,854,347.40. This represents a 36.94% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director David Blair Kirk acquired 2,570 shares of the business’s stock in a transaction on Wednesday, March 18th. The stock was acquired at an average price of $194.62 per share, for a total transaction of $500,173.40. Following the acquisition, the director owned 13,689 shares of the company’s stock, valued at approximately $2,664,153.18. This trade represents a 23.11% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 3.50% of the stock is owned by insiders.

Key Salesforce News

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce’s Agentforce annual recurring revenue has surged to $1.2 billion, up 205% year over year, suggesting its AI push is gaining real traction and could support longer-term growth. Salesforce’s AI Business Is Growing More Than 200%, but the Stock Is Near a 52-Week Low. Something Has to Give.
• Positive Sentiment: Salesforce’s acquisition of m3ter should help expand usage-based AI revenue by improving metering and billing for Agentforce and other AI products, which may open new monetization opportunities. Salesforce m3ter Deal Highlights Shift Toward Usage Based AI Revenue
• Positive Sentiment: Reports that Salesforce’s stake in Anthropic has risen to about $5 billion highlight its strategic exposure to a leading AI startup and reinforce the company’s commitment to AI investment. Salesforce’s Anthropic Stake Reportedly Reaches $5 Billion as AI Startup Eyes IPO, Bloomberg Reports
• Neutral Sentiment: TitanX expanded its Salesforce integration with automated phone intent scoring and contact enrichment, which is incremental ecosystem news but not likely to move CRM shares by itself. TitanX Expands Salesforce and HubSpot Integrations with Automated Phone Intent™ Scoring and Contact Enrichment
• Negative Sentiment: Several recent articles note that Salesforce stock is still sliding, near a 52-week low, and that investors remain skeptical despite AI growth, reflecting ongoing valuation and execution concerns. Our Salesforce Stock Pick Has Flopped. We’re Moving On.
• Negative Sentiment: Broader cloud-stock weakness, highlighted by Oracle’s sharp decline after earnings, is adding sector pressure that can weigh on Salesforce even when company-specific news is positive. Oracle Plunges 10% After Earnings, Salesforce Slips Near 52-Week Lows as Cloud Stocks Slide

Salesforce Company Profile

Salesforce, founded in 1999 and headquartered in San Francisco, is a global provider of cloud-based software focused on customer relationship management (CRM) and enterprise applications. The company popularized the software-as-a-service (SaaS) model for CRM and has built a broad portfolio of products designed to help organizations manage sales, service, marketing, commerce and analytics through a unified, cloud-first platform.

Core offerings include Sales Cloud for sales automation, Service Cloud for customer support, Marketing Cloud for digital marketing and engagement, and Commerce Cloud for e-commerce.