Salesforce Inc. (NYSE:CRM) experienced a rise of 1.3% in its share price during mid-day trading on Wednesday, reaching a high of $261.97 before closing at $258.10. Approximately 6,250,471 shares changed hands during the session, reflecting a decline of 20% from the average daily volume of 7,829,800 shares. The stock had previously closed at $254.91.
Analysts Update Price Targets for Salesforce
Recent commentary from various analysts has influenced investor sentiment. Deutsche Bank Aktiengesellschaft raised its price target for Salesforce shares from $340.00 to $360.00, maintaining a “buy” rating in a report dated December 4, 2023. DA Davidson also increased its target, moving from $225.00 to $235.00, while issuing a “neutral” rating. BTIG Research initiated coverage, establishing a “buy” rating with a price target of $335.00. On the other hand, Evercore ISI lowered its price objective from $360.00 to $340.00 but retained an “outperform” rating.
Overall, one analyst has assigned a Strong Buy rating to Salesforce, while twenty-nine analysts favor a Buy rating, thirteen have issued a Hold rating, and one has given a Sell rating. According to data from MarketBeat.com, Salesforce currently holds an average rating of “Moderate Buy” with an average target price of $326.68.
Salesforce’s Financial Performance and Dividend Announcement
Salesforce reported its quarterly earnings on December 3, 2023, revealing earnings of $3.25 per share, which surpassed the consensus estimate of $2.86 by $0.39. The company achieved a net margin of 17.91% and a return on equity of 14.41%. Revenue for the quarter reached $10.26 billion, slightly below analysts’ expectations of $10.27 billion. This figure represented a 9.1% increase compared to the same quarter last year.
In addition to its earnings report, Salesforce announced a quarterly dividend of $0.416 per share, scheduled for payment on January 8, 2024. Shareholders on record as of December 18, 2023 will be eligible for this dividend. The ex-dividend date is also set for December 18, 2023, representing an annualized dividend of $1.66 and a yield of 0.6%. Salesforce’s dividend payout ratio stands at 22.16%.
Insider trading activity has also been notable. On October 15, 2023, CEO Marc Benioff sold 2,250 shares at an average price of $238.37, totaling approximately $536,332.50. After this transaction, he retained 11,911,571 shares, valued at around $2.84 billion. In another transaction, insider Parker Harris sold 134,662 shares on December 2, 2023, for about $31.61 million.
Institutional Investors Increase Holdings
Several institutional investors have recently adjusted their positions in Salesforce. Capital World Investors significantly increased its holdings by 159% during the third quarter, now owning 17,325,206 shares valued at $4.11 billion. Norges Bank acquired a new stake worth approximately $2.83 billion in the second quarter. Additionally, Laurel Wealth Advisors LLC raised its position by an astonishing 27,361.5%, while acquiring an additional 3,411,700 shares.
Other notable adjustments include Hotchkis & Wiley Capital Management LLC purchasing a new stake worth about $484.85 million, and Acadian Asset Management LLC boosting its position by 1,729.6%.
Currently, institutional investors own approximately 80.43% of Salesforce’s stock, indicating strong confidence in the company’s future prospects.
Salesforce, a leading provider of Customer Relationship Management (CRM) technology, continues to expand its influence in the market by enhancing customer engagement and driving business success. Its innovative solutions help companies connect and manage their relationships with customers effectively.
