Salesforce Inc. (NYSE:CRM) finished Thursday with a subtraction of -$3.62 to close at $205.51, a downside of -1.73 percent. An average of 3,847,480 shares of common stock have been traded in the last five days. There was a gain of $1.67 in the past week, and it reached a new high 20 times over the past 12 months. The last 20 days have seen an average of 4,307,800 shares traded, while the 50-day average volume stands at 5,372,738.
CRM stock has decreased by -8.90% in the last month. The company shares reached their 1-month lowest point of $200.20 on 08/18/23. With the stock rallying to its 52-week high on 07/19/23, shares of the company touched a low of $126.34 and a high of $238.22 in 52 weeks. It has reached a new high 32 times so far this year and achieved 55.00% or $72.92 in price. In spite of this, the price is down -13.73% from the 52-week high.
Insider Transactions
CRM stock investors should be aware that Salesforce Inc. (CRM) stock had its last reported insider trading activity 2 days ago on Aug 23. In this transaction, the insider spent $3,143,266. Chair and CEO, Benioff Marc, disposed of 15,000 shares at a price of $207.65 on Aug 22. The insider now owns more than $3,114,687 worth of shares. Prior to that, President and COO Millham Brian went on to Sale 1,746 shares at $209.85 each on Aug 22. An amount of $366,398 was transacted.
Valuation Metrics
Salesforce Inc. (CRM) has a trailing price-to-earnings (P/E) ratio of 540.82. The stock’s beta is 1.20. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 6.19, the price-to-book (PB) ratio at 3.51, and the price-to-cash flow ratio at 28.20.
Financial Health
The quick ratio of Salesforce Inc. for the three months ended April 29 was 1.00, and the current ratio was 1.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.16 and a total debt to equity ratio of 0.17 for the quarter ending April 29. Salesforce Inc.’s EBITDA margin for the year ending April 29 is 23.32%, while its operating margin for the same period stands at 2.40%. Its gross profit as reported stood at $22.99 billion compared to revenue of $31.35 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Salesforce Inc.’s return on assets was 0.40%.
Earnings Surprise
For the three-month period that ended April 29, Salesforce Inc. had $9.42 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $199.0 million in the quarter, while revenues of $1.14 billion were grew 85.93%. The analyst consensus anticipated Salesforce Inc.’s latest quarter earnings to come in at $1.61 per share, but it turned out to be $1.69, a 5.00% surprise. For the quarter, EBITDA amounted to $2.14 billion. Shareholders own equity worth $974.0 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Salesforce Inc. (CRM) price momentum. RSI 9-day as of the close on 24 August was 38.54%, suggesting the stock is Neutral, with historical volatility in this time frame at 22.22%.
As of today, CRM’s price is $207.05 +0.82% or $1.67 from its 5-day moving average. CRM is currently trading -8.72% lower than its 20-day SMA and +2.87% higher than its 100-day SMA. However, the stock’s current price level is -1.66% below the SMA50 and +47.03% above the SMA200.
The stochastic %K and %D were 40.20% and 38.07%, respectively, and the average true range (ATR) was 4.71. With the 14-day stochastic at 31.81% and the average true range at 4.73, the RSI (14) stands at 39.90%. The stock has reached -0.30 on the 9-day MACD Oscillator while the 14-day reading was at -1.25.
Analyst Ratings
Morgan Stanley downgraded Salesforce Inc. (NYSE: CRM) to a an Equal-weight rating in its most recent analyst report. Previously, the stock was rated as an Overweight. The consensus rating for Salesforce Inc. (CRM) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell CRM, while 15 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 31 others rate it as a “buy”.
What is CRM’s price target for the next 12 months?
Analysts predict a range of price targets between $140.00 and $329.00, with a median target of $245.00. Taking a look at these predictions, the average price target given by analysts for Salesforce Inc. (CRM) stock is $240.71.
