Salesforce (NYSE:CRM) Sets New 1-Year Low – Here’s Why

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

Key Headlines Impacting Salesforce

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce announced a new partnership with the Visa Cash App Racing Bulls Formula 1 team, which will use Agentforce 360 to improve fan engagement, hospitality, and race-day operations. The deal highlights continued momentum for Salesforce’s AI platform. Article: VCARB Partners with Salesforce to Supercharge Fan Engagement with AI, Deploying Agentforce 360
• Neutral Sentiment: Needham reiterated a Buy rating and a $400 price target, suggesting some Wall Street analysts still see significant upside if Salesforce’s AI strategy gains traction. Article: Needham Maintains Buy Rating on Salesforce (CRM) Stock
• Negative Sentiment: Salesforce extended its slide amid a record losing streak and broad investor concern that AI could pressure software-as-a-service pricing and margins. The stock was also described as hitting a 52-week low, underscoring weak sentiment. Article: Salesforce stock hits 52-week low amid record losing streak and AI fears
• Negative Sentiment: Reports that a breach at Klue exposed Salesforce data through stolen OAuth tokens may add to concerns about data security and platform trust. Article: Klue breach exposed Salesforce CRM data through stolen OAuth tokens
• Negative Sentiment: Commentary around Salesforce’s $3.6 billion acquisition of Fin and a “buy the dip” debate reflects ongoing uncertainty about whether aggressive AI investment will translate into faster growth soon enough to justify the stock’s decline. Article: Salesforce (CRM) Is Spending $3.6 Billion To Grow Agentforce And Reach More Customers

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Citizens Jmp reiterated a “market outperform” rating and issued a $315.00 target price on shares of Salesforce in a research report on Thursday, May 28th. B. Riley Financial increased their target price on shares of Salesforce from $205.00 to $240.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. DA Davidson lowered their price objective on shares of Salesforce from $200.00 to $175.00 and set a “neutral” rating for the company in a research report on Thursday, May 28th. KeyCorp dropped their price objective on shares of Salesforce from $300.00 to $290.00 and set an “overweight” rating for the company in a research note on Thursday, May 28th. Finally, Wall Street Zen upgraded shares of Salesforce from a “hold” rating to a “buy” rating in a research report on Saturday, June 6th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, eleven have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $257.61.

Salesforce Price Performance

The company has a 50 day moving average price of $177.01 and a 200-day moving average price of $203.55. 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 company has a market cap of $122.99 billion, a price-to-earnings ratio of 17.38, a P/E/G ratio of 0.94 and a beta of 1.16.

Salesforce (NYSE:CRM) last issued its quarterly earnings data on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.13 by $0.75. Salesforce had a net margin of 18.73% and a return on equity of 18.72%. The business had revenue of $11.13 billion during the quarter, compared to analyst estimates of $11.05 billion. During the same quarter last year, the business earned $2.58 EPS. The firm’s quarterly 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, equities research analysts predict that Salesforce Inc. will post 10.29 EPS for the current fiscal year.

Salesforce Announces Dividend

The business also recently disclosed 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. This represents a $1.76 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Thursday, June 11th. Salesforce’s dividend payout ratio is presently 20.37%.

Salesforce announced that its board has authorized a share buyback plan on Monday, March 16th that authorizes the company to repurchase $25.00 billion in shares. This repurchase authorization authorizes the CRM provider to repurchase up to 14.1% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its stock is undervalued.

Institutional Investors Weigh In On Salesforce

Institutional investors have recently made changes to their positions in the stock. Brighton Jones LLC lifted its position in shares of Salesforce by 13.7% in the 4th quarter. Brighton Jones LLC now owns 25,668 shares of the CRM provider’s stock worth $8,582,000 after purchasing an additional 3,102 shares during the period. Revolve Wealth Partners LLC increased its position in shares of Salesforce by 12.6% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,827 shares of the CRM provider’s stock worth $611,000 after buying an additional 205 shares during the period. Bison Wealth LLC raised its stake in Salesforce by 9.0% during the fourth quarter. Bison Wealth LLC now owns 2,234 shares of the CRM provider’s stock worth $747,000 after buying an additional 184 shares during the last quarter. Sivia Capital Partners LLC lifted its holdings in Salesforce by 3.7% in the second quarter. Sivia Capital Partners LLC now owns 2,958 shares of the CRM provider’s stock valued at $807,000 after buying an additional 106 shares during the period. Finally, United Bank lifted its holdings in Salesforce by 5.2% in the second quarter. United Bank now owns 10,198 shares of the CRM provider’s stock valued at $2,781,000 after buying an additional 500 shares during the period. Institutional investors own 80.43% of the company’s stock.

About Salesforce

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.