Salesforce (NYSE:CRM) Trading Down 4.2% – Should You Sell?

Salesforce Inc. (NYSE:CRM)’s share price dropped 4.2% during mid-day trading on Wednesday . The stock traded as low as $154.23 and last traded at $154.8820. Approximately 18,328,311 shares were traded during trading, an increase of 35% from the average daily volume of 13,531,799 shares. The stock had previously closed at $161.71.

More Salesforce News

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce announced a $3.6 billion acquisition of Fin, a customer AI agent platform, which strengthens its Agentforce strategy and expands its push into AI-powered customer service. Several reports suggest the deal could help Salesforce capture more of the fast-growing agentic AI market. Article Title
• Positive Sentiment: Some analysts remain constructive, with buy ratings reaffirmed and price targets well above the current share price, citing strong cash generation, rising margins, and Salesforce’s large buyback program as support for shareholder returns. Article Title
• Neutral Sentiment: UBS reaffirmed its neutral rating on Salesforce, reflecting a wait-and-see stance as investors gauge whether AI investments will translate into faster growth and improved monetization. Article Title
• Negative Sentiment: Multiple articles and analyst notes highlight concerns that Salesforce’s AI growth path may be slower than hoped, with fair value estimates cut and questions raised about execution, unit economics, and the pace of revenue reacceleration. Article Title
• Negative Sentiment: Commentary also notes that CRM has fallen sharply this year, with some reports blaming the acquisition spree and broader skepticism about whether management can turn AI investments into durable growth, which is weighing on sentiment. Article Title

Analyst Ratings Changes

CRM has been the subject of several research reports. Truist Financial set a $280.00 price target on Salesforce in a report on Thursday, February 26th. Oppenheimer cut their price target on Salesforce from $275.00 to $250.00 and set an “outperform” rating for the company in a report on Thursday, February 26th. BMO Capital Markets cut their price target on Salesforce from $225.00 to $215.00 and set an “outperform” rating for the company in a report on Thursday, May 28th. Canaccord Genuity Group reaffirmed a “buy” rating and set a $225.00 price target on shares of Salesforce in a report on Tuesday. Finally, Mizuho lowered their price objective on Salesforce from $280.00 to $265.00 and set an “outperform” rating on the stock in a research report on Thursday, February 26th. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $259.26.

Salesforce Stock Down 4.2%

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 stock has a market cap of $126.85 billion, a P/E ratio of 17.93, a PEG ratio of 1.02 and a beta of 1.16. The firm has a 50-day simple moving average of $179.14 and a two-hundred day simple moving average of $205.79.

Salesforce (NYSE:CRM) last posted its quarterly earnings data on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share for the quarter, topping the consensus estimate of $3.13 by $0.75. The firm had revenue of $11.13 billion for the quarter, compared to analysts’ expectations of $11.05 billion. Salesforce had a return on equity of 18.72% and a net margin of 18.73%.The company’s quarterly revenue was up 13.3% compared to the same quarter last year. During the same quarter last year, the business earned $2.58 EPS. 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 research analysts expect that Salesforce Inc. will post 10.29 earnings per share for the current fiscal year.

Salesforce Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th will be issued a dividend of $0.44 per share. This represents a $1.76 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend is Thursday, June 11th. Salesforce’s dividend payout ratio is 20.37%.

Salesforce announced that its board has initiated a stock 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 repurchase up to 14.1% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board believes its stock is undervalued.

Insider Activity

In related news, Director Laura Alber bought 2,571 shares of Salesforce stock in a transaction dated Thursday, March 19th. The shares were bought at an average cost of $194.58 per share, with a total value of $500,265.18. Following the acquisition, the director owned 9,530 shares in the company, valued at $1,854,347.40. This trade represents a 36.94% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Company insiders own 3.50% of the company’s stock.

Institutional Trading of Salesforce

Large investors have recently modified their holdings of the stock. Temasek Holdings Private Ltd boosted its stake in shares of Salesforce by 3.7% during the fourth quarter. Temasek Holdings Private Ltd now owns 683,790 shares of the CRM provider’s stock valued at $181,143,000 after purchasing an additional 24,332 shares in the last quarter. NEOS Investment Management LLC boosted its stake in shares of Salesforce by 50.0% during the third quarter. NEOS Investment Management LLC now owns 116,874 shares of the CRM provider’s stock valued at $27,699,000 after purchasing an additional 38,963 shares in the last quarter. SFE Investment Counsel boosted its stake in shares of Salesforce by 82.7% during the fourth quarter. SFE Investment Counsel now owns 17,394 shares of the CRM provider’s stock valued at $4,608,000 after purchasing an additional 7,871 shares in the last quarter. Van ECK Associates Corp boosted its stake in shares of Salesforce by 8.9% during the third quarter. Van ECK Associates Corp now owns 1,299,513 shares of the CRM provider’s stock valued at $307,984,000 after purchasing an additional 106,107 shares in the last quarter. Finally, Fisher Asset Management LLC boosted its stake in shares of Salesforce by 2.4% during the third quarter. Fisher Asset Management LLC now owns 4,328,230 shares of the CRM provider’s stock valued at $1,025,791,000 after purchasing an additional 101,191 shares in the last quarter. 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.