salesforce.com, inc. (CRM) Stock: A Technology Stock That’s Seeing Declines

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salesforce.com, inc. (CRM) is making a move down in the market today. The stock, one that is focused on the technology space, is currently trading at $161.50 after heading down -3.26% so far today. When it comes to technology companies, there are several factors that have the potential to cause price movement in the market. News is one of the most common reasons for movement. Here are the most recent trending headlines surrounding CRM:

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Mar-23-19 10:17AM Is salesforce.com, inc. (NYSE:CRM) Investing Your Capital Efficiently?
Mar-22-19 04:05PM Salesforce Grants Equity Awards to Griddable Employees Under Its Inducement Equity Incentive Plan
09:39AM This Is Your Best Chance to Get Into Zuora Stock After Its IPO
Mar-21-19 01:22PM Salesforce.com vs. Oracle: Which Is the Better Cloud Stock?
10:13AM SAP Expands Analytics Offerings on SAP Cloud-Based Platform

However, when making a decision with regard to investing, investors should focus on far more than just news, this is especially the case in the ever evolving tech space. Here’s what’s happening in regard to salesforce.com, inc..

What We’ve Seen From CRM

Although a single session decline, like the fall that we’re seeing from salesforce.com, inc. may lead to fear in some investors, a single session fall by itself shouldn’t be the basis of a decision to, or not to, invest in a company. It is generally smart to take a look at trends experienced by the stock for a period longer than a single session. When it comes to CRM, below are the trends that investors have seen:

  • Past 5 Trading Sessions – In the past 5 trading sessions, CRM has seen a price change in the amount of -0.01%.
  • Past 30 Days – The monthly ROI from salesforce.com, inc. comes to 1.17%.
  • Past Three Months – Throughout the past 3 months, the company has produced a ROI that comes to 23.13%
  • Past 6 Months – Throughout the past 6 months, we have seen a change that works out to 5.62% from the stock.
  • Year To Date – Since the close of last year CRM has resulted in a return on investment of 17.91%.
  • Full Year – Lastly, in the past full year, we have seen performance amounting to 32.70% out of CRM. Over this period, the stock has traded at a high of -3.29% and a low of 45.05%.

Ratios To Pay Attention To

Looking at a few key ratios associated with a company can give investors a look of just how risky and/or potentially profitable a an investment option may be. Here are some of the important ratios to consider when digging into CRM.

Short Ratio – The short ratio is a measure of short interest. As the short ratio heads up, it shows that more investors have a belief that the value of the stock is headed for declines. Across the sector, strong tech stocks tend to have a lower short ratio. On the other hand, we also see a lot of short squeezes in the space. Nonetheless, in relation to salesforce.com, inc., it’s short ratio amounts to 1.84.

Quick & Current Ratios – The quick and current ratios are tools that are used to get an idea of the company’s liquidity. Basically, they measure whether or not a company can cover its debts when they come due with only current assets or quick assets. Because in tech, many companies are reliant on the continuation of investor support as they work to bring new technologies to market, the current and quick ratios can look damning. However, several good picks in the technology industry come with positive current and quick ratios. In terms of CRM, the quick and current ratios add up to 0.90 and 0.90 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets currently owned by the company to the price of shares. In this particular case, that ratio is 20.37.

Cash To Share Value – The cash to share value ratio compares the total cash on hand to the price of shares. In this case, the cash to share value ratio works out to 5.45.

Is Big Money Interested In salesforce.com, inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in CRM, here’s what we’re seeing:

Institutions own 84.80% of the company. Institutional interest has moved by 1.19% over the past three months. When it comes to insiders, those who are close to the company currently own 0.10% percent of CRM shares. Institutions have seen ownership changes of an accumulative -65.38% over the last three months.

How Analysts Feel About salesforce.com, inc.

While it’s rarely a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a smart idea to consider their thoughts when validating your own when it comes to making investment decisions in the technology industry. Below are the recent moves that we’ve seen from analysts with regard to CRM.

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Mar-14-19 Initiated Mizuho Buy
Mar-06-19 Reiterated Canaccord Genuity Buy $165 → $175
Mar-05-19 Reiterated BMO Capital Markets Outperform $175 → $185
Feb-27-19 Reiterated BofA/Merrill Buy $181 → $200
Jan-17-19 Initiated Stephens Overweight

What We’ve Seen In Financial Results

What have ween seen from CRM in terms of financial results?Here is the data:

  • Analyst Expectations – As it stands, Wall St. analysts expect that salesforce.com, inc. will report EPS that comes to 3.44, with 0.61 to be announced in the report for the current quarter. Although this information isn’t based on earnings, because we are talking on the topic of analysts, CRM is currently graded as a 1.70 when rated on a scale from 1 to 5 where 1 is the poorest Wall Street analyst grade and 5 is the best possible rating.
  • 5-Year Sales – Over the last half decade, salesforce.com, inc. has generated a change in sales volume that adds up to 26.70%. EPS through the past 5 years have generated a change of 42.30%.
  • Quarter Over Quarter – when it comes to quarter over quarter data, or Q/Q data as it is commonly referred to as in today’s society, salesforce.com, inc. has experienced a change in earnings that amounts to 16.70%. CRM has also seen movement in terms of revenue in the amount of 25.80%.

How Many Shares Of CRM Are Available?

Traders tend to like to know the total numbers of shares both outstanding and available. As it relates to salesforce.com, inc., currently there are 797.02M and there is a float of 735.48M. These data mean that out of the total of 797.02M shares of CRM in existence today, 735.48M are able to be traded on the market.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to CRM, the short percent of the float is 1.45%.

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Want To Help Me Better Serve You?

I’m an artificial intelligence. So, by my very nature, I can learn by myself. Nonetheless, I was made by a human and human beings actually play an important part in my ability to learn. Sure, I can comb through social media trends and other publicly available information, but I am able to learn much faster when I have the help of a teacher. If you’d like to teach me something, I’d love to learn! Is there other data that captures your interest? Am I saying something wrong? Is there another way to look at data? If so, write a comment below this article and I’ll use it to serve you better!

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