NEOS Investment Management LLC has significantly increased its stake in Salesforce Inc. (NYSE: CRM) by 50.0% during the third quarter of 2023. According to reports from HoldingsChannel, the firm now owns 116,874 shares of the customer relationship management (CRM) provider, having acquired an additional 38,963 shares during this period. As of its most recent filing with the Securities and Exchange Commission, NEOS’s holdings in Salesforce are valued at approximately $27.7 million.
Several other institutional investors have also adjusted their positions in Salesforce recently. Marquette Asset Management LLC acquired a new stake worth around $26,000 in the third quarter, while Evolution Wealth Management Inc. made a similar move in the second quarter with an investment of about $27,000. Notably, Quaker Wealth Management LLC raised its holdings by 208.6%, bringing its total ownership to 126 shares valued at roughly $34,000 after purchasing an additional 242 shares. Meanwhile, Country Trust Bank raised its position by an impressive 658.8%, now owning 129 shares worth approximately $35,000.
Currently, institutional investors and hedge funds collectively own 80.43% of Salesforce’s stock.
Analysts Adjust Price Targets for Salesforce
The stock has attracted attention from analysts, resulting in various updated ratings and price targets. Wolfe Research reaffirmed an “outperform” rating in a report released on January 15, 2024. Similarly, Citizens JMP set a price objective of $430.00 while maintaining a “market outperform” rating in a note dated December 2, 2023. Notably, Morgan Stanley adjusted its price target down from $405.00 to $398.00, although it still holds an “overweight” rating on the stock.
Investment house BTIG Research initiated coverage on Salesforce, providing a “buy” rating and a price target of $335.00. Additionally, The Goldman Sachs Group began coverage, also issuing a “buy” rating with a target of $330.00. Overall, Salesforce has received a strong consensus rating, with one analyst giving a Strong Buy, twenty-nine recommending Buy, twelve issuing Hold ratings, and one suggesting Sell. The average rating stands at “Moderate Buy,” with a price target of $323.57 according to data from MarketBeat.
Insider Trading Activity
In recent insider trading, Director David Blair Kirk purchased 1,936 shares on December 17, 2023, at an average price of $258.64 per share, totaling $500,727.04. This acquisition increased his position by 22.15%, bringing his total ownership to 10,677 shares valued at approximately $2.76 million. This transaction was disclosed in a filing with the Securities and Exchange Commission.
Conversely, Director Neelie Kroes sold 3,893 shares on January 14, 2024, at an average price of $238.70, resulting in a total transaction value of $929,259.10. Following this sale, Kroes holds 7,299 shares valued at around $1.74 million, marking a 34.78% decrease in ownership. Currently, insiders own 3.00% of Salesforce’s stock.
Salesforce continues to be a prominent player in the technology sector. As of January 15, 2024, shares of Salesforce opened at $189.58, with a market capitalization of $177.63 billion. The stock has a price-to-earnings (P/E) ratio of 25.31 and a beta of 1.27. Its performance over the past year has seen a low of $180.24 and a high of $329.74.
Salesforce’s latest quarterly earnings report, released on December 3, 2023, revealed earnings of $3.25 per share, surpassing analysts’ estimates of $2.86 by $0.39. Revenue for the quarter reached $10.26 billion, closely aligning with expectations of $10.27 billion, marking a 9.1% increase compared to the previous year’s quarter.
The company has also announced a quarterly dividend of $0.416, which was paid on January 8, 2024. This represents an annualized dividend of $1.66 and a yield of 0.9%. Salesforce’s current dividend payout ratio stands at 22.16%.
Founded in 1999 and headquartered in San Francisco, Salesforce has established itself as a leader in cloud-based software solutions focused on customer relationship management and enterprise applications. The company was a pioneer in the software-as-a-service (SaaS) model and continues to expand its offerings to assist organizations in managing sales, service, marketing, commerce, and analytics through a unified cloud platform.
