Salesforce Inc. (NYSE: CRM) saw its stock price increase by 1.3% during trading on December 3, 2023, reaching a high of $261.97 before closing at $258.10. Approximately 6,250,471 shares exchanged hands, marking a 20% decrease from the average daily volume of 7,829,800 shares. The stock had previously closed at $254.91, showcasing a positive trend in the company’s market performance.
Analyst Ratings Signal Confidence
Recent research reports have highlighted Salesforce as a strong investment opportunity. Notably, Northland Securities raised its price target for Salesforce shares from $264.00 to $267.00, maintaining a “market perform” rating. DA Davidson also increased its price target from $225.00 to $235.00, providing a “neutral” rating in its report. Additionally, Wedbush reiterated an “outperform” rating with a target price of $375.00.
Weiss Ratings issued a “hold (c+)” rating, while Macquarie set its price objective at $265.00, also holding a “neutral” stance. Overall, one analyst rated the stock as a Strong Buy, while twenty-nine others assigned a Buy rating. Thirteen analysts issued a Hold rating, and one recommended selling the stock. According to MarketBeat.com, the average rating stands at “Moderate Buy” with a consensus price target of $326.68.
Strong Earnings Report
Salesforce announced its quarterly earnings on December 3, reporting an earnings per share (EPS) of $3.25, surpassing analysts’ expectations of $2.86 by $0.39. The company generated revenue of $10.26 billion, slightly below the anticipated $10.27 billion. Compared to the same quarter last year, Salesforce experienced a revenue increase of 9.1%. Last year during this period, the company reported an EPS of $2.41.
Salesforce expects its Q4 2026 guidance to be between 3.020 and 3.040 EPS. Analysts predict that Salesforce will achieve an EPS of 7.46 for the current year, indicating robust growth potential.
Additionally, Salesforce has declared a quarterly dividend of $0.416 per share, set to be paid on January 8, 2024. Shareholders of record on December 18 will receive this dividend, which translates to an annualized dividend of $1.66 and a yield of 0.6%. The ex-dividend date is also December 18, with a payout ratio currently at 22.16%.
Insider Trading Activities
In other corporate news, Salesforce’s CEO, Marc Benioff, sold 122 shares on November 3 at an average price of $259.00, amounting to a total sale value of $31,598. Following this transaction, Benioff retains ownership of 11,911,571 shares, valued at approximately $3.08 billion.
Meanwhile, Director G. Mason Morfit acquired 96,000 shares on December 5 at an average price of $260.58, totaling $25,015,680. After this purchase, Morfit directly owns 2,994,509 shares, worth around $780.31 million. Over the last three months, insiders have sold 175,284 shares for a total of $41,648,819, with company insiders now holding 3.00% of the stock.
Institutional Investor Activity
Institutional trading has seen significant movement concerning Salesforce shares. Farmers National Bank increased its position by 8.9% in the third quarter, now holding 1,179 shares valued at $279,000 after acquiring an additional 96 shares. Hudson Bay Capital Management LP raised its stake by 142.8%, owning 3,420 shares worth $811,000 after purchasing 11,416 shares.
Alecta Tjanstepension Omsesidigt boosted its position by 13.1%, now owning 560,000 shares valued at $132.70 million after acquiring 65,000 shares. Other investors, such as Saranac Partners Ltd and IFP Advisors Inc., also expanded their holdings significantly during this period. Overall, institutional investors and hedge funds control 80.43% of Salesforce’s stock.
Salesforce continues to be a leader in Customer Relationship Management (CRM) technology, combining sales and service solutions that enhance customer engagement on a global scale. With recent analyst upgrades, strong earnings, and ongoing support from institutional investors, Salesforce remains a company to watch in the coming months.
