Salesforce (NYSE:CRM) Downgraded to “Neutral” Rating by Phillip Securities

Salesforce (NYSE:CRM) was downgraded by Phillip Securities from a “buy” rating to a “neutral” rating in a research report issued on Monday,MarketScreener reports. They presently have a $166.00 price objective on the CRM provider’s stock, down from their prior price objective of $253.00. Phillip Securities’ price objective would suggest a potential upside of 4.91% from the stock’s current price.

Several other research firms have also issued reports on CRM. Wall Street Zen upgraded Salesforce from a “hold” rating to a “buy” rating in a research report on Saturday, June 6th. Wedbush reissued an “outperform” rating and issued a $325.00 target price on shares of Salesforce in a research note on Thursday, May 28th. BTIG Research restated a “buy” rating and set a $255.00 target price on shares of Salesforce in a research report on Tuesday, May 26th. Macquarie Infrastructure cut their price target on shares of Salesforce from $200.00 to $190.00 and set a “neutral” rating on the stock in a research report on Thursday, May 28th. Finally, Citigroup restated a “market outperform” rating on shares of Salesforce in a report on Thursday, May 28th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating, twelve have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, Salesforce has an average rating of “Moderate Buy” and an average price target of $255.14.

Salesforce Stock Performance

Salesforce stock opened at $158.23 on Monday. Salesforce has a 1 year low of $146.32 and a 1 year high of $276.80. The company’s 50-day moving average is $175.56 and its two-hundred day moving average is $200.79. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.15. The company has a market cap of $129.59 billion, a PE ratio of 18.31, a PEG ratio of 0.99 and a beta of 1.16.

Salesforce (NYSE:CRM) last announced its quarterly earnings data on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $11.05 billion. During the same period in the prior year, the business posted $2.58 earnings per share. Salesforce’s revenue was up 13.3% compared to the same quarter last year. Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS. Equities analysts anticipate that Salesforce will post 10.29 earnings per share for the current year.

Salesforce announced that its Board of Directors has approved a share repurchase program on Monday, March 16th that authorizes the company to buyback $25.00 billion in outstanding shares. This buyback authorization authorizes the CRM provider to purchase up to 14.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

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

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.