Vinva Investment Management Boosts Salesforce Holdings by Over 55%

Vinva Investment Management Ltd has significantly increased its stake in Salesforce Inc. (NYSE:CRM), raising its holdings by 55.2% during the second quarter of 2023. According to a filing with the Securities and Exchange Commission, the firm now owns 63,119 shares of the customer relationship management provider’s stock, valued at approximately $17.26 million.

This increase is part of a broader trend among institutional investors. Notably, Nuveen LLC established a new position in Salesforce during the first quarter, worth about $2.04 billion. In addition, Laurel Wealth Advisors LLC dramatically increased its holdings by 27,361.5%, now owning 3,424,169 shares valued at approximately $933.74 million. Other significant increases include Acadian Asset Management LLC, which raised its position by 1,729.6% and now holds 1,973,141 shares valued at around $538.02 million.

As of now, institutional investors and hedge funds collectively own 80.43% of Salesforce’s stock, indicating strong confidence in the company’s future prospects.

Salesforce Stock Performance and Market Insights

On Thursday, October 9, 2023, shares of Salesforce opened at $228.27, reflecting a 2.5% decline. The company boasts a market capitalization of $217.31 billion, a price-to-earnings ratio of 33.18, and a beta of 1.19. Over the past year, Salesforce recorded a low of $221.96 and a high of $369.00.

In its most recent earnings report on September 3, 2023, Salesforce announced earnings per share of $2.91, exceeding analyst expectations of $2.78 by $0.13. The company reported revenues of $10.24 billion, surpassing estimates of $10.14 billion and reflecting a year-over-year revenue increase of 9.8%. Salesforce’s net margin stood at 16.87% with a return on equity of 13.27%.

The company has set its fiscal year 2026 guidance at 11.330-11.370 EPS and Q3 2026 guidance at 2.840-2.860 EPS. Analysts forecast an average earnings per share of 7.46 for the current fiscal year.

Dividend Declaration and Analyst Ratings

Salesforce recently declared a quarterly dividend of $0.416 per share, which was distributed on October 9, 2023. Shareholders on record as of September 17, 2023, received the dividend, resulting in an annualized dividend of $1.66 and a yield of 0.7%. The company’s dividend payout ratio currently stands at 24.13%.

In terms of analyst coverage, several research firms have adjusted their ratings on Salesforce stock. Wall Street Zen downgraded its rating from “buy” to “hold” on November 8, 2023. UBS Group reduced its price target from $300.00 to $260.00 while maintaining a “neutral” rating. Similarly, Northland Capital Markets and DA Davidson have issued “hold” ratings, with price targets of $225.00 and maintaining a “neutral” stance respectively.

Overall, Salesforce has received 25 buy ratings, 13 hold ratings, and 1 sell rating from analysts, resulting in an average rating of “Moderate Buy” and an average target price of $322.86 according to MarketBeat.com.

In related news, CEO Marc Benioff sold 122 shares of the company’s stock on November 3, 2023, for a total value of $31,598. Following this transaction, he retains 11,911,571 shares valued at approximately $3.08 billion. Over the past ninety days, insiders have sold 56,372 shares valued at $13.94 million, with insiders holding 3.00% of the company’s stock.

Salesforce Inc. continues to lead in providing innovative Customer Relationship Management (CRM) technology, connecting businesses with their customers globally. The company’s offerings include sales data management, analytics, and personalized customer support solutions.