Investors Buy Shares of Salesforce.com Inc. (CRM) on Weakness After Insider Selling
Investors purchased shares of Salesforce.com Inc. (NYSE:CRM) on weakness during trading hours on Monday following insider selling activity. $128.97 million flowed into the stock on the tick-up and $97.84 million flowed out of the stock on the tick-down, for a money net flow of $31.13 million into the stock. Of all stocks tracked, Salesforce.com had the 16th highest net in-flow for the day. Salesforce.com traded down ($1.44) for the day and closed at $72.83Specifically, CEO Marc Benioff sold 12,500 shares of the stock in a transaction dated Tuesday, July 19th. The shares were sold at an average price of $81.39, for a total value of $1,017,375.00. Following the sale, the chief executive officer now owns 35,383,000 shares of the company’s stock, valued at approximately $2,879,822,370. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Keith Block sold 20,000 shares of the stock in a transaction dated Thursday, August 4th. The stock was sold at an average price of $81.00, for a total transaction of $1,620,000.00. Following the completion of the sale, the insider now directly owns 20,000 shares in the company, valued at approximately $1,620,000. The disclosure for this sale can be found here. Company insiders own 6.70% of the company’s stock.
A number of analysts recently weighed in on CRM shares. Bank of America Corp. reaffirmed a “buy” rating and issued a $70.52 price objective (down previously from $100.00) on shares of Salesforce.com in a report on Wednesday, October 5th. Vetr raised shares of Salesforce.com from a “hold” rating to a “buy” rating in a research note on Friday, September 23rd. Morgan Stanley lowered their target price on shares of Salesforce.com from $110.00 to $94.00 and set an “overweight” rating on the stock in a research note on Monday, July 25th. Piper Jaffray Cos. reissued an “overweight” rating and set a $100.00 target price on shares of Salesforce.com in a research note on Monday, August 15th. Finally, Mizuho raised their target price on shares of Salesforce.com from $85.00 to $100.00 and gave the company a “buy” rating in a research note on Thursday, September 1st. Two analysts have rated the stock with a sell rating, three have issued a hold rating and forty-five have issued a buy rating to the company. The company has a consensus rating of “Buy” and an average target price of $92.23.
The firm has a 50-day moving average price of $73.60 and a 200-day moving average price of $77.68. The stock has a market capitalization of $49.89 billion, a PE ratio of 224.78 and a beta of 1.59.
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Salesforce.com (NYSE:CRM) last announced its quarterly earnings results on Wednesday, August 31st. The CRM provider reported $0.24 EPS for the quarter, beating the Zacks’ consensus estimate of $0.22 by $0.02. Salesforce.com had a return on equity of 2.19% and a net margin of 2.91%. The firm had revenue of $2.04 billion for the quarter, compared to analyst estimates of $2.02 billion. During the same period last year, the firm posted $0.19 earnings per share. The business’s revenue for the quarter was up 25.0% on a year-over-year basis. On average, analysts expect that Salesforce.com Inc. will post $0.95 earnings per share for the current year.
Several institutional investors have recently modified their holdings of CRM. Soroban Capital Partners LP bought a new position in shares of Salesforce.com during the first quarter worth about $290,380,000. Vanguard Group Inc. increased its position in shares of Salesforce.com by 3.1% in the second quarter. Vanguard Group Inc. now owns 39,426,135 shares of the CRM provider’s stock worth $3,130,829,000 after buying an additional 1,181,756 shares during the period. American Century Companies Inc. increased its position in shares of Salesforce.com by 54.4% in the second quarter. American Century Companies Inc. now owns 3,297,549 shares of the CRM provider’s stock worth $261,858,000 after buying an additional 1,161,596 shares during the period. Waddell & Reed Financial Inc. increased its position in shares of Salesforce.com by 489.5% in the second quarter. Waddell & Reed Financial Inc. now owns 1,384,048 shares of the CRM provider’s stock worth $109,908,000 after buying an additional 1,149,275 shares during the period. Finally, Tybourne Capital Management HK Ltd. bought a new position in shares of Salesforce.com during the first quarter worth about $72,518,000. Institutional investors own 87.03% of the company’s stock.
salesforce.com, inc. is a provider of enterprise cloud computing solutions, with a focus on customer relationship management (CRM). The Company’s Customer Success Platform, including sales force automation, customer service and support, marketing automation, community management, analytics, application development, Internet of Things (IoT) integration and its professional cloud services, provide the next-generation platform of enterprise applications and services.
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