Zacks Investment Research lowered shares of salesforce.com (NYSE:CRM) from a buy rating to a hold rating in a research note published on Thursday morning.
According to Zacks, “Salesforce reported stellar Q4 results and provided a strong outlook. We are also encouraged by the fact that the company achieved the $10-billion mark in revenues faster than any other enterprise software company. The company’s diverse cloud offerings and strong spending on digital marketing remain the catalysts. Additionally, strategic acquisitions and the resultant synergies are anticipated to prove conducive to growth over the long run. Furthermore, the company’s move of utilizing other data center operators like Amazon and Alphabet’s geographical reach to expand its international business is commendable and will help it in achieving its targeted $20 billion sales mark in next few years as well. The stock has outperformed the industry in the last one year. Nonetheless, stiff competition and an increase in investments for international expansions and data centers could negatively impact near-term profitability.”
A number of other analysts also recently issued reports on CRM. Vetr raised shares of salesforce.com from a sell rating to a hold rating and set a $130.00 price objective for the company in a report on Thursday. Robert W. Baird reissued a buy rating on shares of salesforce.com in a report on Thursday, March 1st. Guggenheim reissued a buy rating and issued a $128.00 price objective on shares of salesforce.com in a report on Thursday, January 11th. JMP Securities boosted their price objective on shares of salesforce.com from $125.00 to $126.00 and gave the company a market outperform rating in a report on Thursday, March 1st. Finally, JPMorgan Chase & Co. upped their price target on shares of salesforce.com to $130.00 and gave the stock an overweight rating in a report on Thursday, March 1st. One analyst has rated the stock with a sell rating, six have given a hold rating and forty-four have assigned a buy rating to the stock. The stock currently has an average rating of Buy and a consensus target price of $123.51.
salesforce.com (NYSE:CRM) last posted its quarterly earnings data on Wednesday, February 28th. The CRM provider reported $0.35 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.34 by $0.01. The firm had revenue of $2.85 billion during the quarter, compared to the consensus estimate of $2.81 billion. salesforce.com had a net margin of 1.22% and a return on equity of 3.86%. The business’s revenue for the quarter was up 24.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.28 EPS. equities research analysts expect that salesforce.com will post 0.9 earnings per share for the current fiscal year.
In other news, insider Joe Allanson sold 22,606 shares of the stock in a transaction on Friday, January 12th. The shares were sold at an average price of $110.00, for a total transaction of $2,486,660.00. Following the completion of the sale, the insider now directly owns 52,916 shares in the company, valued at $5,820,760. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Craig Conway sold 250 shares of the stock in a transaction on Tuesday, January 16th. The stock was sold at an average price of $110.85, for a total transaction of $27,712.50. Following the sale, the director now owns 8,908 shares of the company’s stock, valued at $987,451.80. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 248,557 shares of company stock valued at $27,603,409. 6.20% of the stock is currently owned by corporate insiders.
Several institutional investors and hedge funds have recently bought and sold shares of the company. Ark Investment Management LLC increased its position in shares of salesforce.com by 38.3% during the second quarter. Ark Investment Management LLC now owns 111,279 shares of the CRM provider’s stock worth $9,637,000 after purchasing an additional 30,792 shares in the last quarter. Nationwide Fund Advisors grew its holdings in salesforce.com by 1.4% in the 3rd quarter. Nationwide Fund Advisors now owns 243,771 shares of the CRM provider’s stock valued at $22,773,000 after buying an additional 3,345 shares in the last quarter. Raymond James Financial Services Advisors Inc. grew its holdings in salesforce.com by 8.1% in the 3rd quarter. Raymond James Financial Services Advisors Inc. now owns 288,562 shares of the CRM provider’s stock valued at $26,957,000 after buying an additional 21,733 shares in the last quarter. Andra AP fonden grew its holdings in salesforce.com by 61.2% in the 3rd quarter. Andra AP fonden now owns 27,400 shares of the CRM provider’s stock valued at $2,560,000 after buying an additional 10,400 shares in the last quarter. Finally, Keybank National Association OH grew its holdings in salesforce.com by 29.7% in the 3rd quarter. Keybank National Association OH now owns 21,380 shares of the CRM provider’s stock valued at $1,997,000 after buying an additional 4,899 shares in the last quarter. Institutional investors own 86.68% of the company’s stock.
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Salesforce.com, Inc is a provider of enterprise software, delivered through the cloud, with a focus on customer relationship management (CRM). The Company focuses on cloud, mobile, social, Internet of Things (IoT) and artificial intelligence technologies. The Company’s service offerings are configured and integrated with other platforms and enterprise applications.
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