salesforce.com, inc. (NYSE:CRM) grew as high as $143.39 on Monday before closing at $142.22. The 3.09 percent rally pushed its market cap to $106.9B. The shares went down as low as $138.79 before recovering. Trading activity significantly improved as the volume at ready counter increased to 9,006,493 shares versus 7,079,790 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 6,716,200 shares. The stock is now 38.93% above against its bear-market low of $102.37 on February 09, 2018. It has retreated -13.34% since it’s 52-week high of $161.19 reached in October. Now the market price is up 33.31% on the year and up 3.83% YTD.
CRM’s 50 day simple moving average (SMA 50) price is $134.03 and its 200-day simple moving average (SMA 200) price is $137.1. The company’s stock currently has a total float of 728.83M shares. Its weekly volatility is hovering around 3.54% and felt 4.49% volatility in price over a month. On the upside, the share price will test short term resistance at around $144.14. On a downside, the stock is likely to find some support, which begins at $139.54. The failure to get near-term support could push it to $136.87.
Separately, it has been reported that multiple insider activity took place at salesforce.com, inc. (CRM). Chairman of the Board & co-CEO Benioff Marc sold 10,000 shares for $31,765,800 in transaction occurred on 2019/01/07. After making this transaction, the Chairman of the Board & co-CEO owns a direct stake of 1,394,800 shares, worth $4,520,000,000, as per the last closing price. On 2019/01/03 Benioff Marc, Chairman of the Board & co-CEO at CRM, dumped 5,000 shares at an average price of $132.08 per share. The selling total is valued at $4,520,000,000.
Director, Roos John Victor had divested 114 shares for $11,955 through a trade on 2019/01/03. Following this activity, the insider holds 15,217 shares worth $1,700,240 as of recent close. Wall Street’s most bullish salesforce.com, inc. (NYSE:CRM) analysts are predicting the share price to blow past $189 per share during the next 12 months. The current median share price forecast by them is $174.5, suggesting that the stock could increase 22.7% in that time frame. The average price target of $171.82 calls for a nearly 20.81% increase in the stock price.
It had seen a positive analyst call from Pivotal Research Group, which upgraded the stock from Hold to Buy on January 07. Analysts at BMO Capital Markets, maintained the company shares at Outperform on November 28 but switched target price from $174 to $175. Brokerage firm BMO Capital Markets, looks cautious as they stick to prior recommendation of Market Perform, in a call on October 15. However, they did change the target price from $165 to $174. Piper Jaffray, reiterated their call for Overweight, on September 28. On the other hand, they had set new target price to $190 versus $180.
When looking at valuations, salesforce.com, inc. (CRM) has a pricey P/E of 105.9x as compared to industry average of 22.12x. Moreover, it trades for 51.66 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 7.36x price/book and 8.53x price/sales. Compared to others, salesforce.com, inc. is in a different league with regards to profitability, having net margins of 6.5%. To put some perspective around this, the industry’s average net margin is 10.01%. CRM’s ROE is 6.6%, which is also considerably worse than the industry’s ROE of 15.96%. It’s also not liquid in the near term, with a current ratio of 0.9. The stock has a debt/capital of 0.3.
Shares of salesforce.com, inc. (CRM) have gained 8.2% since the company’s Apr-19 earnings report. Over the past 8 fiscal quarters, salesforce.com, inc. (NYSE:CRM) has topped consensus earnings estimates in 6 quarters (50%), missed earnings in 1 quarters (8%), whereas at 1 occasion EPS met analyst expectations. CRM last reported earnings on November 27, 2018 when it released Oct-18 results that exceeded expectations. The company raked in $0.61 per share, -97.22% change on the same period last year. That was better than consensus for $0.5. Revenue for the recent quarter stood at $3.39 billion, up 27% on last year and above the $3.37 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $3.59 billion to $3.77 billion, which should be compared with $3.45 billion generated last year. EPS is seen in a range of $0.52 to $0.75, against the $0.47 reported a year ago.