Zacks Investment Research downgraded shares of salesforce.com (NYSE:CRM) from a buy rating to a hold rating in a research note published on Thursday.
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.”
Several other research analysts have also recently issued reports on the company. Vetr raised salesforce.com from a sell rating to a hold rating and set a $130.00 price objective on the stock in a research note on Thursday. Morgan Stanley increased their target price on salesforce.com from $134.00 to $140.00 and gave the company an overweight rating in a research report on Friday, March 2nd. Argus increased their target price on salesforce.com to $141.00 and gave the company a buy rating in a research report on Friday, March 2nd. TheStreet raised salesforce.com from a c rating to a b- rating in a research report on Wednesday, February 28th. Finally, Robert W. Baird reaffirmed a buy rating on shares of salesforce.com in a research report on Thursday, March 1st. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and forty-four have given a buy rating to the company’s stock. The stock has a consensus rating of Buy and an average target price of $122.77.
salesforce.com (NYSE:CRM) last announced its quarterly earnings data on Wednesday, February 28th. The CRM provider reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.01. salesforce.com had a return on equity of 3.86% and a net margin of 1.22%. The company had revenue of $2.85 billion for the quarter, compared to analysts’ expectations of $2.81 billion. During the same quarter in the prior year, the firm earned $0.28 earnings per share. salesforce.com’s revenue was up 24.3% compared to the same quarter last year. analysts expect that salesforce.com will post 0.9 EPS for the current year.
In other salesforce.com news, CAO Joe Allanson sold 321 shares of the stock in a transaction dated Friday, February 23rd. The stock was sold at an average price of $113.47, for a total transaction of $36,423.87. Following the sale, the chief accounting officer now directly owns 30,618 shares of the company’s stock, valued at approximately $3,474,224.46. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Alexandre Dayon sold 1,015 shares of the stock in a transaction dated Friday, February 23rd. The stock was sold at an average price of $113.47, for a total value of $115,172.05. Following the sale, the insider now directly owns 17,452 shares in the company, valued at $1,980,278.44. The disclosure for this sale can be found here. Insiders have sold a total of 288,337 shares of company stock worth $31,729,390 over the last ninety days. 6.20% of the stock is owned by insiders.
Several large investors have recently bought and sold shares of CRM. Egerton Capital UK LLP acquired a new stake in shares of salesforce.com during the 4th quarter valued at about $294,547,000. Arrowstreet Capital Limited Partnership grew its position in shares of salesforce.com by 323.4% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,568,872 shares of the CRM provider’s stock valued at $364,846,000 after acquiring an additional 2,725,972 shares during the period. Tybourne Capital Management HK Ltd. grew its position in shares of salesforce.com by 27.8% during the 4th quarter. Tybourne Capital Management HK Ltd. now owns 4,346,500 shares of the CRM provider’s stock valued at $444,343,000 after acquiring an additional 945,000 shares during the period. Assenagon Asset Management S.A. acquired a new stake in shares of salesforce.com during the 4th quarter valued at about $83,414,000. Finally, Janus Henderson Group PLC grew its position in shares of salesforce.com by 5.3% during the 3rd quarter. Janus Henderson Group PLC now owns 13,435,212 shares of the CRM provider’s stock valued at $1,255,082,000 after acquiring an additional 675,471 shares during the period. Hedge funds and other institutional investors own 85.82% of the company’s stock.
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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