Perpetual Ltd has reduced its stake in Salesforce Inc. (NYSE: CRM) by 26.0% during the third quarter of 2023, as revealed in its recent 13F filing with the Securities and Exchange Commission. Following the sale of 56,208 shares, Perpetual now holds 160,009 shares valued at approximately $37.9 million.
Several other institutional investors have made significant moves regarding their investments in Salesforce. For instance, Painted Porch Advisors LLC increased its stake by 260.0% in the second quarter, bringing its total to 90 shares worth about $25,000. Similarly, Evolution Wealth Management Inc. acquired a new position in Salesforce valued at around $27,000, while CBIZ Investment Advisory Services LLC raised its holdings by 314.8%, now owning 112 shares worth $30,000.
The trend of institutional investment reflects a complex landscape in which 80.43% of Salesforce’s stock is held by institutional investors and hedge funds. This activity comes as Salesforce continues to navigate market perceptions and performance.
Recent Developments and Market Sentiment
Salesforce has been the subject of varied market sentiment recently. Notably, director David Blair Kirk purchased 1,936 shares, increasing his stake by 22%. Such insider buying is often viewed as a positive signal regarding the company’s future prospects. Additionally, analysts at JPMorgan contend that the market is undervaluing Salesforce’s potential in artificial intelligence (AI), suggesting the stock is “priced like a value stock” during a time when AI-driven monetization is expected to ramp up.
Salesforce’s strategic moves include its agreement to acquire AI marketing firm Qualified, which aims to enhance its marketing capabilities. This acquisition is anticipated to create cross-selling opportunities across its various platforms, further accelerating annual recurring revenue (ARR) and the adoption of AI features.
On a more cautious note, Morgan Stanley lowered its price target for Salesforce, highlighting ongoing concerns about execution risk and near-term multiples. This perspective serves as a reminder that while some analysts are bullish, others remain wary of potential challenges.
Salesforce’s Financial Performance and Outlook
Salesforce’s stock performance has been closely monitored, with shares opening at $259.64 recently. The company boasts a market capitalization of $243.29 billion and has shown resilience, reporting a net margin of 17.91% and a return on equity of 14.41%. The firm’s latest earnings report revealed earnings per share (EPS) of $3.25, surpassing the consensus estimate of $2.86.
Looking forward, Salesforce has set its guidance for the fourth quarter of 2026 between $3.020 and $3.040 EPS. Analysts predict an annual EPS of $7.46 for the current year, underlining the company’s potential for growth despite mixed market signals.
In addition to its performance, Salesforce recently announced a quarterly dividend of $0.416 per share, set to be paid on January 8, 2024, to investors recorded by December 18, 2023. This represents an annualized dividend yield of 0.6%, reflecting a payout ratio of 22.16%.
As Salesforce continues to evolve within the competitive landscape of cloud-based software and customer relationship management, the actions of institutional investors and market analysts will play a crucial role in shaping its trajectory.
