On September 10, 2023, it was revealed that investment firm Fernbridge Capital Management LP had reduced its stake in technology giant Salesforce, Inc. (NYSE:CRM) by 19.3% during the first quarter of the year. This information was disclosed through the company’s most recent filing with the Securities and Exchange Commission (SEC). The fund now owns 609,625 shares of Salesforce stock after selling off 145,981 shares over the quarter.
Despite reducing its position, Salesforce remains a significant part of Fernbridge Capital Management LP’s portfolio, accounting for 13.7% of its total holdings. In fact, it is still the second-largest holding in the firm’s portfolio. At the end of the most recent quarter, Fernbridge Capital Management LP’s stake in Salesforce was valued at approximately $121,791,000.
Moving on to other news surrounding Salesforce, the company recently released its quarterly earnings report on August 30th. According to the report, Salesforce reported earnings per share (EPS) of $2.12 for the quarter. This figure exceeded analysts’ consensus estimate of $1.90 per share by $0.22.
Furthermore, it is worth noting that Salesforce achieved a net margin of 4.77% and a return on equity of 7.67%. The company generated revenue totaling $8.60 billion during this period, surpassing analyst estimates which projected revenue at $8.53 billion.
Comparatively speaking to the same quarter from last year, Salesforce experienced an impressive increase in quarterly revenue—11.4% higher than before. These positive results have led equities analysts to predict that Salesforce will post earnings per share of 5.86 for the current fiscal year.
As these developments unfold within Fernbridge Capital Management LP and Salesforce itself, market participants may find it valuable to stay updated with future reports to gauge potential shifts in fortunes for both parties involved in this business endeavor.
Confidence in Salesforce: Institutional Investors, Analysts, and Insider Trading
In recent news, several institutional investors have made changes to their stakes in the company Salesforce, a customer relationship management (CRM) provider. Financial Management Professionals Inc. increased its holdings by 237.4% in the first quarter and now owns 722 shares valued at $144,000. Similarly, William Blair Investment Management LLC saw a 1.1% growth in its position, owning 1,047,620 shares worth $209,294,000 after purchasing an additional 11,322 shares. VELA Investment Management LLC also increased its holdings by 5.9%, now owning 5,040 shares valued at $1,007,000.
Additionally, Csenge Advisory Group bought a new position in Salesforce during the first quarter for around $329,000. Lastly, Ethic Inc., boosted its stake by an astonishing 66.7%, now owning 55,264 shares valued at $11,041,000.
These changes reflect a high level of confidence from institutional investors and demonstrate their belief in Salesforce’s potential for long-term growth and success.
Turning to research analysts’ reports on the company’s performance and outlook— Royal Bank of Canada reaffirmed an “outperform” rating with a price target of $240.00 on Thursday, August 31st. Evercore ISI also provided an “outperform” rating and raised their price target from $240.00 to $275.00 on the same day.
However,” Morgan Stanley downgraded Salesforce from ‘overweight’ to ‘equal weight’ and increased the stock’s price objective from $251 to $278,” as indicated in their report released on Monday July 31st.
Oppenheimer provided a positive outlook as well by raising their target price from $235.00 to $250.00 while issuing an “outperform” rating on Thursday August 31st.The research reports reveal that the majority of analysts are bullish about Salesforce’s future, with 13 analysts giving a ‘hold’ rating and a resounding 24 analysts assigning a ‘buy’ rating.
In recent insider trading news, CEO Marc Benioff sold 15,000 shares of the company’s stock on September 7th at an average price of $221.70 per share. Following this sale, Benioff now directly owns over 15 million shares valued at $3.5 billion.
These transactions indicate the confidence of the CEO in the company’s performance and may be seen as a positive signal by investors.
Furthermore, Chief Accounting Officer Sundeep G. Reddy also sold 164 shares of Salesforce stock on July 24th at an average price of $225.05 per share.
During Friday’s trading session, Salesforce stocks were observed to have risen by $2.23, reaching a price of $224.76. The traded volume amounted to 4,580,356 shares compared to an average volume of 4,963,453 shares.
The market capitalization for Salesforce stands at approximately $218.69 billion with a P/E ratio of 141.36 and a price-to-earnings-growth ratio of 1.68.
The company exhibits solid liquidity with both its quick ratio and current ratio measuring at 1.02 while maintaining a low debt-to-equity ratio of 0.15.
Salesforce’s stock has experienced considerable growth over the past year, ranging from lows of $126.34 to highs of $238.22 during this period. Currently, the fifty-day moving average sits at $217.39 and the 200-day moving average stands at $204.43.
Overall, with positive changes in institutional investor stakes, analyst ratings leaning towards buy recommendations ,and recent insider selling indicating confident leadership within the company—Salesforce appears to be positioned well for continued growth in the foreseeable future , providing investors with a potentially fruitful investment opportunity.