salesforce.com inc. [NYSE:CRM] shares are showing some interesting activity. The company’s daily low is at $238.7101 as the high is reaching $248.11.
If readers are not familiar, salesforce.com inc. is in the Technology sector under the Software – Application industry. This week, we are watching the stock hit price per sales of 11.48 with an earning per share of 0.39.
As a reference point, the S&P 500 is trading -2.49% over the last 52 weeks, while CRM stock is trading 58.06%.
The Bears are coming
Holding a Market Cap of $222.52 billion, salesforce.com inc. has seen a trading range over the last year of $115.29-$284.50.
For the last five days, CRM is down from its last closing price. The average shares trading hands each day is 7.96M.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for CRM. When we apply the Elder Force Index to salesforce.com inc., we are seeing an Elder Force Indicator number of -6826113.03.
The recent performance of the stock is another area that can tell traders how to proceed. CRM is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 64.59.
In the last quarter, CRM made a profit of 3.84 billion. salesforce.com inc. also saw quarter revenue growth year over year of 28.73%.
Looking at popular technical indicators, the company’s 5-day moving average is 245.75 compared to the 50-day moving average of 1.37%. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. CRM currently holds a 9-day RSI of 43.67%, while 100-day RSI stands at 56.09%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. CRM’s 9-day MACD is -4.15 and the company’s 100-day MACD stands at 43.38.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 3.80% by insiders and 85.16% by institutions.
Over the last six months, insiders have sold 15,000 with the most recent transaction from Benioff Marc, Chair of the Board & CEO, with a sell at price 244.29 per share.
Overall, the recommended rating for CRM is Strong Buy. Currently, the company has 34 analysts watching the stock, and the average quarterly earnings estimate is 0.75. Quarterly revenue estimates are averaging 5.25B with the high estimate reaching 5.28B and the low at 5.24B.
To review, the current 1-year target estimate is sitting at 273.42, while the current price 238.21. Based on this, we expect the stock to rise considering the aforementioned fundamentals.