Salesforce (NYSE:CRM) Releases Quarterly Earnings Results, Misses Expectations By $0.19 EPS

Salesforce (NYSE:CRM) posted its earnings results on Wednesday. The CRM provider reported $2.66 earnings per share for the quarter, missing analysts’ consensus estimates of $2.85 by ($0.19), Zacks reports. Salesforce had a net margin of 16.87% and a return on equity of 13.27%.

Salesforce Price Performance

CRM stock traded up $3.76 during midday trading on Wednesday, hitting $238.47. The company’s stock had a trading volume of 12,470,397 shares, compared to its average volume of 7,724,326. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 0.14. Salesforce has a 12 month low of $221.96 and a 12 month high of $369.00. The company has a 50 day moving average of $242.92 and a two-hundred day moving average of $253.21. The firm has a market capitalization of $227.02 billion, a price-to-earnings ratio of 34.66, a price-to-earnings-growth ratio of 1.83 and a beta of 1.25.

Salesforce Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 9th. Investors of record on Wednesday, September 17th were issued a $0.416 dividend. The ex-dividend date of this dividend was Wednesday, September 17th. This represents a $1.66 dividend on an annualized basis and a yield of 0.7%. Salesforce’s payout ratio is currently 24.13%.

Insider Buying and Selling at Salesforce

In related news, Director David Blair Kirk bought 3,400 shares of the business’s stock in a transaction that occurred on Tuesday, September 9th. The stock was bought at an average cost of $254.66 per share, with a total value of $865,844.00. Following the completion of the purchase, the director owned 3,824 shares of the company’s stock, valued at approximately $973,819.84. The trade was a 801.89% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Marc Benioff sold 2,250 shares of the business’s stock in a transaction on Monday, September 8th. The stock was sold at an average price of $251.12, for a total transaction of $565,020.00. Following the completion of the sale, the chief executive officer owned 11,911,571 shares in the company, valued at approximately $2,991,233,709.52. The trade was a 0.02% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 51,872 shares of company stock worth $12,801,203 in the last three months. Insiders own 3.00% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC lifted its position in Salesforce by 13.7% in the fourth quarter. Brighton Jones LLC now owns 25,668 shares of the CRM provider’s stock worth $8,582,000 after buying an additional 3,102 shares during the last quarter. Revolve Wealth Partners LLC lifted its holdings in shares of Salesforce by 12.6% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,827 shares of the CRM provider’s stock worth $611,000 after acquiring an additional 205 shares during the last quarter. Bison Wealth LLC lifted its holdings in shares of Salesforce by 9.0% in the 4th quarter. Bison Wealth LLC now owns 2,234 shares of the CRM provider’s stock worth $747,000 after acquiring an additional 184 shares during the last quarter. Sivia Capital Partners LLC boosted its stake in shares of Salesforce by 3.7% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,958 shares of the CRM provider’s stock worth $807,000 after purchasing an additional 106 shares during the period. Finally, United Bank grew its holdings in Salesforce by 5.2% during the 2nd quarter. United Bank now owns 10,198 shares of the CRM provider’s stock valued at $2,781,000 after purchasing an additional 500 shares during the last quarter. Hedge funds and other institutional investors own 80.43% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on CRM shares. Royal Bank Of Canada reduced their price target on shares of Salesforce from $275.00 to $250.00 and set a “sector perform” rating for the company in a research report on Thursday, September 4th. DA Davidson reiterated a “neutral” rating and issued a $225.00 price target on shares of Salesforce in a research report on Thursday, October 16th. Mizuho dropped their price target on shares of Salesforce from $350.00 to $340.00 and set an “outperform” rating on the stock in a research note on Monday, November 17th. Northland Capmk lowered Salesforce from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 14th. Finally, Piper Sandler reiterated an “overweight” rating and set a $315.00 target price on shares of Salesforce in a research report on Thursday, October 16th. Twenty-six analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Salesforce currently has an average rating of “Moderate Buy” and a consensus price target of $325.42.

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.