salesforce.com (NYSE:CRM) Shares Gap Up on Earnings Beat

salesforce.com, inc. (NYSE:CRM) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $138.78, but opened at $148.24. salesforce.com shares last traded at $151.57, with a volume of 25,282,773 shares trading hands.

The CRM provider reported $0.66 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.09 by $0.57. salesforce.com had a net margin of 8.26% and a return on equity of 8.18%. The business had revenue of $4 billion during the quarter, compared to analysts’ expectations of $3.96 billion. During the same quarter in the prior year, the business posted $0.71 earnings per share. salesforce.com’s revenue was up 21.8% compared to the same quarter last year.

Several research firms have recently issued reports on CRM. Credit Suisse Group set a $175.00 price objective on salesforce.com and gave the company a “buy” rating in a research note on Thursday. Sanford C. Bernstein reissued a “neutral” rating and set a $169.00 target price on shares of salesforce.com in a research report on Tuesday, June 11th. Nomura increased their target price on shares of salesforce.com from $180.00 to $185.00 and gave the company a “buy” rating in a research report on Friday. JMP Securities increased their target price on shares of salesforce.com from $178.00 to $191.00 and gave the company a “market outperform” rating in a research report on Friday. Finally, Bank of America reissued a “buy” rating and set a $200.00 target price on shares of salesforce.com in a research report on Wednesday, June 5th. Four analysts have rated the stock with a hold rating, thirty-eight have given a buy rating and one has issued a strong buy rating to the company. The company has an average rating of “Buy” and an average target price of $182.03.

In other salesforce.com news, insider Parker Harris sold 620 shares of salesforce.com stock in a transaction that occurred on Tuesday, May 28th. The stock was sold at an average price of $156.09, for a total value of $96,775.80. Following the transaction, the insider now directly owns 30,281 shares of the company’s stock, valued at approximately $4,726,561.29. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Marc Benioff sold 5,000 shares of salesforce.com stock in a transaction that occurred on Wednesday, July 17th. The stock was sold at an average price of $158.94, for a total value of $794,700.00. The disclosure for this sale can be found here. Insiders sold a total of 297,406 shares of company stock worth $45,207,736 over the last ninety days. Insiders own 5.50% of the company’s stock.

A number of institutional investors have recently made changes to their positions in the business. Nuveen Asset Management LLC increased its stake in shares of salesforce.com by 36,379.9% during the second quarter. Nuveen Asset Management LLC now owns 12,648,680 shares of the CRM provider’s stock valued at $1,919,183,000 after buying an additional 12,614,007 shares during the period. Price T Rowe Associates Inc. MD increased its stake in shares of salesforce.com by 13.5% during the second quarter. Price T Rowe Associates Inc. MD now owns 33,910,865 shares of the CRM provider’s stock valued at $5,145,296,000 after buying an additional 4,046,077 shares during the period. Viking Global Investors LP purchased a new position in shares of salesforce.com during the second quarter valued at approximately $443,415,000. BlackRock Inc. increased its stake in shares of salesforce.com by 4.7% during the second quarter. BlackRock Inc. now owns 56,165,345 shares of the CRM provider’s stock valued at $8,521,967,000 after buying an additional 2,499,996 shares during the period. Finally, Jennison Associates LLC increased its stake in shares of salesforce.com by 8.4% during the second quarter. Jennison Associates LLC now owns 21,575,462 shares of the CRM provider’s stock valued at $3,273,645,000 after buying an additional 1,673,392 shares during the period. 82.03% of the stock is currently owned by institutional investors and hedge funds.

The company has a debt-to-equity ratio of 0.34, a current ratio of 0.96 and a quick ratio of 0.96. The stock has a market capitalization of $112.94 billion, a PE ratio of 104.53, a PEG ratio of 5.31 and a beta of 1.27. The company has a 50 day moving average price of $151.52 and a 200-day moving average price of $156.22.

salesforce.com Company Profile (NYSE:CRM)

salesforce.com, inc. develops enterprise cloud computing solutions with a focus on customer relationship management. The company offers Sales Cloud to store data, monitor leads and progress, forecast opportunities, and gain insights through analytics and relationship intelligence, as well as deliver quotes, contracts, and invoices.

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