Salesforce (NYSE:CRM) Shares Down 0.2% After Earnings Miss

Salesforce, Inc. (NYSE:CRM) was down 0.2% during trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $323.65 and last traded at $330.31. Approximately 2,503,109 shares traded hands during trading, a decline of 60% from the average daily volume of 6,272,413 shares. The stock had previously closed at $331.01.

The CRM provider reported $2.41 EPS for the quarter, missing analysts’ consensus estimates of $2.44 by ($0.03). Salesforce had a return on equity of 12.31% and a net margin of 15.96%. The firm had revenue of $9.44 billion for the quarter, compared to analyst estimates of $9.35 billion. During the same period in the previous year, the firm posted $1.62 earnings per share. The company’s revenue for the quarter was up 8.3% on a year-over-year basis.

Wall Street Analysts Forecast Growth

CRM has been the topic of a number of recent research reports. Northland Securities reissued an “outperform” rating and set a $440.00 target price (up from $400.00) on shares of Salesforce in a research report on Wednesday. Phillip Securities reissued an “accumulate” rating and set a $305.00 target price on shares of Salesforce in a research report on Friday, August 30th. Piper Sandler upped their price target on shares of Salesforce from $325.00 to $395.00 and gave the company an “overweight” rating in a report on Monday. Wedbush upped their price target on shares of Salesforce from $325.00 to $375.00 and gave the company an “outperform” rating in a report on Monday, November 25th. Finally, Guggenheim reaffirmed a “neutral” rating on shares of Salesforce in a report on Wednesday. Eight equities research analysts have rated the stock with a hold rating, thirty have given a buy rating and four have issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $372.86.

Insider Buying and Selling

In other Salesforce news, COO Brian Millham sold 60,522 shares of the company’s stock in a transaction dated Tuesday, October 29th. The shares were sold at an average price of $300.00, for a total value of $18,156,600.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Sundeep G. Reddy sold 413 shares of the company’s stock in a transaction dated Wednesday, October 23rd. The shares were sold at an average price of $285.29, for a total transaction of $117,824.77. Following the sale, the chief accounting officer now directly owns 7,006 shares of the company’s stock, valued at $1,998,741.74. This represents a 5.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 140,982 shares of company stock valued at $41,591,457 over the last 90 days. 3.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Salesforce

A number of hedge funds have recently added to or reduced their stakes in the company. Oddo BHF Asset Management Sas acquired a new position in Salesforce during the third quarter valued at approximately $15,894,000. Inspire Trust Co. N.A. bought a new stake in shares of Salesforce in the third quarter valued at approximately $821,000. Beaird Harris Wealth Management LLC boosted its position in shares of Salesforce by 1,639.5% in the third quarter. Beaird Harris Wealth Management LLC now owns 661 shares of the CRM provider’s stock valued at $181,000 after acquiring an additional 623 shares during the period. Tidal Investments LLC lifted its position in Salesforce by 37.6% in the third quarter. Tidal Investments LLC now owns 196,584 shares of the CRM provider’s stock worth $53,807,000 after purchasing an additional 53,739 shares during the period. Finally, Wilmington Savings Fund Society FSB lifted its position in Salesforce by 7.4% in the third quarter. Wilmington Savings Fund Society FSB now owns 43,812 shares of the CRM provider’s stock worth $11,992,000 after purchasing an additional 3,021 shares during the period. Institutional investors and hedge funds own 80.43% of the company’s stock.

Salesforce Stock Performance

The stock has a market capitalization of $351.75 billion, a P/E ratio of 60.52, a PEG ratio of 3.00 and a beta of 1.30. The firm has a 50-day moving average of $306.55 and a 200 day moving average of $271.81. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.15.

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.