Salesforce (NYSE:CRM) Reaches New 52-Week Low – Time to Sell?

Salesforce Inc. (NYSE:CRM)’s share price hit a new 52-week low on Tuesday . The company traded as low as $146.32 and last traded at $150.1690, with a volume of 20468475 shares changing hands. The stock had previously closed at $151.78.

Analyst Ratings Changes

A number of equities research analysts have commented on the stock. HC Wainwright downgraded shares of Salesforce to a “negative” rating in a research report on Thursday, June 18th. Wedbush restated an “outperform” rating and issued a $325.00 price target on shares of Salesforce in a research note on Thursday, May 28th. Daiwa Securities Group reduced their price objective on Salesforce from $295.00 to $280.00 and set a “buy” rating for the company in a research report on Tuesday, June 2nd. Roth Mkm reissued a “buy” rating and issued a $325.00 target price on shares of Salesforce in a research report on Thursday, May 28th. Finally, BTIG Research reaffirmed a “buy” rating and set a $255.00 price target on shares of Salesforce in a research report on Tuesday, May 26th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, eleven have issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, Salesforce presently has an average rating of “Moderate Buy” and an average price target of $257.61.

Salesforce Trading Down 0.6%

The stock has a fifty day simple moving average of $176.37 and a 200 day simple moving average of $202.28. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.15. The firm has a market capitalization of $124.86 billion, a P/E ratio of 17.64, a PEG ratio of 0.96 and a beta of 1.16.

Salesforce (NYSE:CRM) last announced its quarterly earnings results on Wednesday, May 27th. The CRM provider reported $3.88 EPS for the quarter, beating analysts’ consensus estimates of $3.13 by $0.75. Salesforce had a return on equity of 18.72% and a net margin of 18.73%.The company had revenue of $11.13 billion during the quarter, compared to analyst estimates of $11.05 billion. During the same period in the prior year, the company earned $2.58 earnings per share. The firm’s revenue was up 13.3% on a year-over-year basis. Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS. As a group, research analysts forecast that Salesforce Inc. will post 10.29 EPS for the current year.

Salesforce Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Thursday, June 11th will be issued a $0.44 dividend. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 1.2%. Salesforce’s dividend payout ratio (DPR) is 20.37%.

Salesforce announced that its Board of Directors has authorized a stock repurchase program on Monday, March 16th that allows the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization allows the CRM provider to reacquire up to 14.1% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On Salesforce

A number of institutional investors and hedge funds have recently made changes to their positions in CRM. Commonwealth Retirement Investments LLC purchased a new position in shares of Salesforce in the 4th quarter worth approximately $25,000. Board of the Pension Protection Fund purchased a new stake in shares of Salesforce in the fourth quarter worth approximately $26,000. Key Capital Management INC bought a new stake in shares of Salesforce during the 4th quarter worth approximately $26,000. Gilpin Wealth Management LLC purchased a new position in Salesforce during the 4th quarter valued at $26,000. Finally, Legacy Bridge LLC purchased a new stake in Salesforce in the fourth quarter worth $27,000. 80.43% of the stock is owned by hedge funds and other institutional investors.

Salesforce Company Profile

Salesforce, founded in 1999 and headquartered in San Francisco, is a global provider of cloud-based software focused on customer relationship management (CRM) and enterprise applications. The company popularized the software-as-a-service (SaaS) model for CRM and has built a broad portfolio of products designed to help organizations manage sales, service, marketing, commerce and analytics through a unified, cloud-first platform.

Core offerings include Sales Cloud for sales automation, Service Cloud for customer support, Marketing Cloud for digital marketing and engagement, and Commerce Cloud for e-commerce.