Salesforce (NYSE:CRM) Stock Price Down 1.7% on Insider Selling

Shares of Salesforce, Inc. (NYSE:CRM) dropped 1.7% during mid-day trading on Thursday following insider selling activity. The company traded as low as $271.07 and last traded at $274.19. Approximately 1,586,510 shares changed hands during trading, a decline of 71% from the average daily volume of 5,457,792 shares. The stock had previously closed at $278.97.

Specifically, CEO Marc Benioff sold 15,000 shares of the firm’s stock in a transaction dated Friday, March 1st. The shares were sold at an average price of $315.54, for a total transaction of $4,733,100.00. Following the completion of the transaction, the chief executive officer now owns 13,311,166 shares in the company, valued at approximately $4,200,205,319.64. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In other news, CEO Marc Benioff sold 15,000 shares of the stock in a transaction on Friday, March 1st. The stock was sold at an average price of $315.54, for a total transaction of $4,733,100.00. Following the completion of the sale, the chief executive officer now owns 13,311,166 shares in the company, valued at approximately $4,200,205,319.64. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Parker Harris sold 4,200 shares of the firm’s stock in a transaction on Tuesday, May 7th. The stock was sold at an average price of $277.22, for a total value of $1,164,324.00. Following the sale, the insider now directly owns 115,762 shares of the company’s stock, valued at $32,091,541.64. The disclosure for this sale can be found here. Insiders have sold a total of 624,193 shares of company stock valued at $182,005,898 over the last three months. Company insiders own 3.70% of the company’s stock.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. Royal Bank of Canada reissued an “outperform” rating and issued a $350.00 target price (up from $325.00) on shares of Salesforce in a research report on Friday, April 12th. UBS Group lifted their price objective on shares of Salesforce from $285.00 to $310.00 and gave the stock a “neutral” rating in a research report on Friday, February 16th. Needham & Company LLC restated a “buy” rating and issued a $345.00 target price on shares of Salesforce in a report on Monday, April 15th. Oppenheimer lifted their price target on Salesforce from $300.00 to $325.00 and gave the company an “outperform” rating in a report on Monday, February 12th. Finally, Stifel Nicolaus reissued a “buy” rating and set a $350.00 price target on shares of Salesforce in a research report on Wednesday, April 3rd. Nine investment analysts have rated the stock with a hold rating, twenty-four have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, Salesforce currently has an average rating of “Moderate Buy” and an average target price of $310.61.

Salesforce Stock Performance

The stock’s 50-day moving average price is $292.87 and its 200 day moving average price is $268.07. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.14. The company has a market cap of $266.36 billion, a P/E ratio of 65.52, a price-to-earnings-growth ratio of 2.10 and a beta of 1.30.

Salesforce (NYSE:CRM) last announced its earnings results on Wednesday, February 28th. The CRM provider reported $1.78 EPS for the quarter, topping the consensus estimate of $1.72 by $0.06. The firm had revenue of $9.29 billion for the quarter, compared to the consensus estimate of $9.22 billion. Salesforce had a net margin of 11.87% and a return on equity of 10.42%. The business’s quarterly revenue was up 10.8% on a year-over-year basis. During the same quarter last year, the firm posted $1.01 EPS. As a group, research analysts expect that Salesforce, Inc. will post 7.45 EPS for the current fiscal year.

Salesforce Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 11th. Shareholders of record on Thursday, March 14th were issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 0.58%. The ex-dividend date was Wednesday, March 13th. Salesforce’s dividend payout ratio (DPR) is currently 9.52%.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in CRM. Bear Mountain Capital Inc. bought a new stake in Salesforce in the 4th quarter valued at $26,000. Signature Resources Capital Management LLC bought a new stake in shares of Salesforce in the fourth quarter valued at about $26,000. Ruedi Wealth Management Inc. lifted its stake in shares of Salesforce by 186.7% in the first quarter. Ruedi Wealth Management Inc. now owns 86 shares of the CRM provider’s stock valued at $26,000 after buying an additional 56 shares during the period. Kathleen S. Wright Associates Inc. acquired a new stake in Salesforce during the fourth quarter worth about $31,000. Finally, Pacifica Partners Inc. increased its stake in Salesforce by 333.3% during the fourth quarter. Pacifica Partners Inc. now owns 130 shares of the CRM provider’s stock valued at $33,000 after acquiring an additional 100 shares during the period. 80.43% of the stock is owned by institutional investors.

About Salesforce

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.