Salesforce (NYSE:CRM) Stock Falls 1.9% – Should You Sell?

Salesforce Inc. (NYSE:CRM) shares fell 1.9% on Tuesday. The stock traded as low as $214.67 and last traded at $221.9430. Approximately 6,593,476 shares were traded during trading, a decline of 50% from the average daily volume of 13,175,014 shares. The stock had previously closed at $226.18.

Key Salesforce News

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce agreed to acquire AI startup Cresta, a deal reported at about $2.7 billion. The purchase could add AI capabilities for customer service and support Salesforce’s effort to broaden its AI products. Salesforce Signs Definitive Agreement to Acquire Cresta
• Positive Sentiment: A Zacks analysis says Salesforce’s improving revenue outlook, AI adoption and valuation support a bullish case, despite a recent six-month rally. Another comparison highlights the company’s steadier revenue expansion, which may appeal to investors seeking more predictable growth. Salesforce Climbs 22% in Six Months: Is the Stock Still Worth Buying? Salesforce vs. IBM: Comparing Consistent Revenue Expansion Against Slow Sales Growth
• Negative Sentiment: Cresta is Salesforce’s fifth major acquisition this year, intensifying questions about whether the company can integrate multiple deals effectively. The $2.7 billion commitment may also sharpen investor scrutiny of acquisition spending while the stock is weak. The Selloff Didn’t Stop Salesforce From Spending $2.7 Billion on an AI Startup
• Negative Sentiment: Salesforce filed to offer 609,118 shares, valued at roughly $139.6 million, for an employee stock ownership plan. The offering adds a modest dilution concern for shareholders. Salesforce (CRM) Files Share Offering, Is The Pullback A Valuation Opportunity?

Analyst Upgrades and Downgrades

A number of analysts have issued reports on CRM shares. Freedom Broker lifted their target price on shares of Salesforce from $230.00 to $295.00 and gave the company a “buy” rating in a research note on Thursday, September 17th. Truist Financial restated a “buy” rating and set a $300.00 price target (up from $280.00) on shares of Salesforce in a research note on Thursday, August 27th. UBS Group restated a “buy” rating on shares of Salesforce in a report on Friday, September 11th. Wall Street Zen lowered shares of Salesforce from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Finally, BTIG Research reiterated a “buy” rating and issued a $300.00 price objective on shares of Salesforce in a report on Wednesday, September 2nd. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, thirteen have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $278.98.

Salesforce Stock Down 1.9%

The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 1.02. The business has a 50-day simple moving average of $239.27 and a 200-day simple moving average of $198.81. The stock has a market cap of $182.66 billion, a P/E ratio of 20.23, a PEG ratio of 1.10 and a beta of 1.26.

Salesforce (NYSE:CRM) last released its quarterly earnings results on Wednesday, August 26th. The CRM provider reported $5.90 EPS for the quarter, beating analysts’ consensus estimates of $3.27 by $2.63. Salesforce had a net margin of 21.99% and a return on equity of 24.90%. The company had revenue of $11.35 billion for the quarter, compared to analyst estimates of $11.33 billion. During the same quarter last year, the firm posted $2.91 earnings per share. The company’s quarterly revenue was up 10.8% compared to the same quarter last year. Salesforce has set its FY 2027 guidance at 16.670-16.710 EPS and its Q3 2027 guidance at 3.420-3.440 EPS. Analysts expect that Salesforce Inc. will post 12.82 EPS for the current year.

Salesforce Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, October 8th. Investors of record on Thursday, September 17th were issued a $0.44 dividend. This represents a $1.76 annualized dividend and a yield of 0.8%. The ex-dividend date was Thursday, September 17th. Salesforce’s dividend payout ratio (DPR) is 16.04%.

Insiders Place Their Bets

In other news, Director Craig Conway sold 4,500 shares of Salesforce stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $260.61, for a total value of $1,172,745.00. Following the transaction, the director directly owned 5,437 shares in the company, valued at approximately $1,416,936.57. The trade was a 45.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director David Blair Kirk acquired 4,176 shares of the business’s stock in a transaction that occurred on Friday, September 18th. The shares were acquired at an average cost of $239.33 per share, with a total value of $999,442.08. Following the transaction, the director directly owned 18,748 shares in the company, valued at $4,486,958.84. The trade was a 28.66% increase in their position. The SEC filing for this purchase provides additional information. 3.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Formidable Asset Management LLC raised its stake in shares of Salesforce by 14.6% in the third quarter. Formidable Asset Management LLC now owns 7,570 shares of the CRM provider’s stock worth $1,738,000 after purchasing an additional 965 shares during the last quarter. Asset Dedication LLC grew its position in shares of Salesforce by 64.7% in the third quarter. Asset Dedication LLC now owns 5,688 shares of the CRM provider’s stock valued at $1,306,000 after purchasing an additional 2,234 shares in the last quarter. Plancorp LLC lifted its stake in Salesforce by 2.3% in the 3rd quarter. Plancorp LLC now owns 4,439 shares of the CRM provider’s stock worth $1,017,000 after purchasing an additional 100 shares in the last quarter. Waycross Partners LLC bought a new stake in shares of Salesforce during the 3rd quarter valued at about $1,148,000. Finally, Ashton Thomas Private Wealth LLC raised its position in Salesforce by 14.9% during the third quarter. Ashton Thomas Private Wealth LLC now owns 21,830 shares of the CRM provider’s stock valued at $5,011,000 after purchasing an additional 2,837 shares in the last quarter. 80.43% of the stock is owned by institutional investors.

Salesforce Company Profile

Salesforce, Inc (NYSE: CRM) is a global enterprise software company that provides cloud-based customer relationship management (CRM) technology. Its platform helps organizations manage sales, customer service, marketing, commerce, data, analytics and interactions with customers across digital and traditional channels.

The company’s products include Sales Cloud, Service Cloud, Marketing Cloud, Commerce Cloud and Data Cloud. Salesforce also offers Tableau for data visualization and analytics, MuleSoft for application integration, and Slack for workplace collaboration.