The stock of Salesforce Inc. (NYSE:CRM) increased by $2.25 on Monday to finish at $211.72, up 1.07 percent. The last five days have seen an average of 3,620,520 shares of common stock traded. 32 times new highs were reached in the current year, with a gain of $79.13. The average number of shares traded over the last 20 days was 4,174,965, while the average volume over the last 50 days totaled 5,178,478.
CRM stock dropped -6.15% since last month. On 08/18/23, the company’s shares reached a one-month low of $200.20. The stock touched a high of $238.22 on 07/19/23, after rallying from a low of $126.34 in 52 weeks. The price of CRM stock has risen by 59.68% or $79.13 this year, reaching a new high 32 times. Still, the stock price is down -11.12% 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 4 days ago on Aug 25. On Aug 25, Chair and CEO Benioff Marc sold 15,000 shares at $208.63 each. This transaction resulted in the insider making $3,129,513. On Aug 24, Benioff Marc sold 15,000 shares at a price of US$207.29. After the transaction, the insider now owns 16,011,166 shares. Chair and CEO Benioff Marc had earlier sold 15,000 shares on Aug 23 for $209.55 a share. The transaction was completed for $3,143,266.
Valuation Metrics
Salesforce Inc. (CRM) has a trailing price-to-earnings (P/E) ratio of 557.16. Beta for the stock is 1.20. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 6.29, the price-to-book (PB) ratio of 3.61, and the price-to-cash flow ratio of 28.64.
Financial Health
For the three months ended April 29, Salesforce Inc.’s quick ratio was 1.00, while its current ratio was 1.00, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending April 29 is 0.16, and the total debt to equity ratio is 0.17. As far as profitability goes, gross margin for the trailing twelve months is 73.80% percent. Salesforce Inc.’s EBITDA margin for the year ended April 29 was 23.32%, whereas its operating margin stood at 2.40% for the same period. Based on annual data, it had gross profit of $22.99 billion and revenue of $31.35 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. CRM’s return on assets (ROA) during the last 12 months has been 0.40%. There was a 0.10% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 0.60%.
Earnings Surprise
According to Salesforce Inc.’s quarterly financial report for the quarter that ended April 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $8.25 billion, while revenues rose by 10.14% to $3.52 billion. It was predicted that Salesforce Inc.’s quarterly earnings would be $1.69, but it ended up being $1.61, beating the consensus by 5.00%. EBITDA was $2.14 billion for the quarter. At the end of Salesforce Inc.’s most recent quarter ended April 29, its liabilities totaled 36.13 billion, while its total debt was $13.91 billion. Equity owned by shareholders amounts to $974.0 million.
Technical Picture
Here’s a quick look at Salesforce Inc.’s (CRM) price momentum from a technical perspective. As of 28 August, the RSI 9-day stood at 52.84%, suggesting the stock is Neutral, with a 22.13% historical volatility rate.
The stochastic %K and %D were 61.61% and 50.66% respectively, while the average true range (ATR) was 4.69. Based on the 14-day stochastic reading of 86.77%, the RSI (14) reading is 49.33%. On the 9-day MACD Oscillator, the stock is at 1.42, and the 14-day reading is at 0.98.
Analyst Ratings
Salesforce Inc. (NYSE: CRM) was downgraded by Morgan Stanley to a an Equal-weight rating in its latest research report. The stock was previously rated as a an Overweight. Analysts have assigned Salesforce Inc. (CRM) an Overweight rating. CRM is a stock that is recommended for selling by 1 brokerage firm, while 15 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 3 rates it overweight and 31 others recommend it as a buy.
What is CRM’s price target for the next 12 months?
The current consensus forecast for the stock is between $140.00 and $329.00, with a median target price of $245.00. In analyzing these forecasts, the average price target given by analysts for Salesforce Inc. (CRM) is $240.48.
