Daiwa Securities Group Inc. has increased its investment in Salesforce Inc. (NYSE: CRM) by acquiring an additional 52,695 shares during the second quarter of 2023. This purchase raised Daiwa’s total holdings in the customer relationship management provider to 277,804 shares, representing a rise of 23.4%. According to the latest filing with the Securities and Exchange Commission, these shares are valued at approximately $75.75 million.
Several other institutional investors have also made significant adjustments to their positions in Salesforce. Vanguard Group Inc. increased its stake by 1.0%, now holding 88,823,481 shares worth around $24.22 billion after purchasing an additional 909,853 shares. Similarly, Geode Capital Management LLC raised its position by 0.6%, acquiring an additional 114,504 shares, bringing its total to 20,873,900 shares valued at $5.67 billion. Norges Bank entered the picture as well, purchasing a new stake in Salesforce valued at $2.83 billion during the same period.
In the first quarter, UBS AM, a distinct business unit of UBS Asset Management Americas LLC, increased its holdings by 6.9%, acquiring an additional 600,386 shares, bringing its total to 9,258,518 shares worth approximately $2.48 billion. Amundi also made headlines by boosting its position by 26.2% during the second quarter, amassing 7,755,317 shares valued at $2.09 billion. Collectively, institutional investors now own around 80.43% of Salesforce’s stock.
Recent Insider Transactions and Market Performance
In related developments, Salesforce’s Director, G Mason Morfit, acquired 96,000 shares at an average price of $260.58 each on December 5, 2023, totaling approximately $25 million. This transaction increased his holdings to nearly 3 million shares, valued at around $780.31 million. Conversely, insider Parker Harris sold 134,662 shares on December 2, 2023, for about $31.61 million, reducing his position by 49.07%. Over the past three months, insiders have sold a total of 182,034 shares valued at approximately $43.30 million, leaving corporate insiders with 3.00% of the company’s stock.
Salesforce’s stock experienced a slight decline of 0.5% following its quarterly earnings report released on December 3, 2023. The company reported earnings per share (EPS) of $3.25, exceeding analysts’ expectations of $2.86 by $0.39. The firm achieved a return on equity of 14.41%, with a net margin of 17.91%. Revenue for the quarter reached $10.26 billion, marginally below the anticipated $10.27 billion, marking a year-over-year increase of 9.1%.
Salesforce has projected EPS guidance for Q4 2026 between $3.020 and $3.040. Analysts forecast a total EPS of $7.46 for the current fiscal year.
Dividend Declaration and Analyst Ratings
In another update, Salesforce announced a quarterly dividend of $0.416 per share, set to be paid on January 8, 2024, to investors on record by December 18, 2023. This dividend translates to an annualized payout of $1.66 and represents a yield of 0.6%. The company’s current payout ratio stands at 22.16%.
Salesforce has been the subject of multiple analyst reports recently. KeyCorp reduced its price target for Salesforce shares from $440.00 to $400.00, maintaining an “overweight” rating. Meanwhile, BMO Capital Markets adjusted its target from $280.00 to $275.00, while Bank of America lowered its target from $325.00 to $305.00. Northland Securities and Morgan Stanley also made minor adjustments to their price objectives, reflecting a cautious outlook.
Overall, Salesforce has received a consensus rating of “Moderate Buy” from analysts, with 28 firms recommending a buy, 13 suggesting hold, and one indicating sell. The average target price stands at $326.65 according to MarketBeat data.
For further insights on Salesforce and institutional holdings, investors can visit HoldingsChannel.com for the latest 13F filings and insider trades.
