To The Moon

$Salesforce.com(CRM)$ will be releasing its earnings on 31 May 2023 Post Market. There have been reported that on On May 26, 2023 at 09:47:36 ET, an unusually large $1,565.00K block of Call contracts in Salesforce (CRM) was bought, with a strike price of $200.00 / share, expiring in 175 day(s) (on November 17, 2023)

https://www.nasdaq.com/articles/unusual-call-option-trade-in-salesforce-crm-worth-$1565.00k

Unusual options activity (UOA) many times is a 'tell', a signal that there is a likelihood of a potential large move in the underlying stock.

This would indicate that there might be large movement in the stock price when market open on Tuesday (30 May).

Let us see how we view Salesforce.com (CRM)’s earnings report for 2024 (Q1).

Salesforce (CRM) Past 5 Days Trading

if we look at 23 May 2023, there was a drop in price once market open, once we follow the news and what analyst have been reporting on the upcoming report, we can see that there is actually a change in analyst rating from BUY to HOLD for 23 May 2023.

Then sentiment came back and raised the rating again back to BUY. This show that CRM is pretty sensitive to news events and investor sentiment movement.

Salesforce (CRM) Earnings Data

Their forecast EPS is $1.61, based on its past 3 quarter earnings, I would expect EPS to beat estimate.

Salesforce (CRM) Forecast EPS and Past EPS

As we have seen from the past 3 quarters, CRM have beaten their EPS estimates. I believe their business should be better now that their AI powered software would be more receptive to their existing customers.

What I would really like to see if how many more new subscriptions that they have managed to acquire with this new A.I. advantage?

Salesforce (CRM) Insider Transactions

There is a news reported on 25 May 23 that insiders are selling 105m of shares, this does warrant a caution.

But if we look at the charts below, there was also 13 BUY transactions by 13 insiders, which mean that insiders are still having confidence in the company despite the 105m shares sales.

https://finance.yahoo.com/news/salesforce-insiders-sell-us-105m-120037730.html

Salesforce (CRM) Hedge Funds Holdings

There are 3479 funds or institutions reporting positions in Salesforce.

This is an increase of 159 owner(s) or 4.79% in the last quarter. Average portfolio weight of all funds dedicated to CRM is 0.73%, an increase of 32.15%.

Total shares owned by institutions increased in the last three months by 4.95% to 898,312K shares.

Ofi Invest Asset Management holds 37,272K shares representing 3.81% ownership of the company.

Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) holds 28,880K shares representing 2.95% ownership of the company. This is an increase of 2.33% compared to prior filing of 28,207K shares.

VTSMX decreased its portfolio allocation in CRM by 12.84% over the last quarter.

Vanguard 500 Index Fund Investor Shares (VFINX) holds 23,117K shares representing 2.36% ownership of the company. This is an increase of 2.43% compared to prior filing of 22,555K shares.

VFINX decreased its portfolio allocation in CRM by 12.96% over the last quarter.

Price T Rowe Associates holds 19,133K shares representing 1.95% ownership of the company. This is a decrease of 37.42% compared to prior filing of 26,293K shares.

Price T Rowe Associates increased its portfolio allocation in CRM by 2.04% over the last quarter.

Geode Capital Management holds 17,749K shares representing 1.81% ownership of the company. This is an increase of 1.87% compared to prior filing of 17,417K shares.

Geode Capital Management increased its portfolio allocation in CRM by 42.01% over the last quarter.

Salesforce (CRM) put/call ratio of CRM is 1.28, indicating a bearish outlook.

Salesforce (CRM) Technical Analysis - Moving Averages

Salesforce’s (CRM) 10-Day exponential moving average is 208.92, while Salesforce’s (CRM) share price is $215.44, making it a Buy.

Salesforce’s (CRM) 100-Day exponential moving average is 185.58, while Salesforce’s (CRM) share price is $215.44, making it a Buy.

Salesforce’s (CRM) stock price is $215.44 and Salesforce’s (CRM) 50-day simple moving average is 197.57, creating a Buy signal.

Salesforce’s (CRM) stock price is $215.44 and Salesforce’s (CRM) 100-day simple moving average is 181.17, creating a Buy signal.

Salesforce’s (CRM) stock price is $215.44 and Salesforce’s (CRM) 200-day simple moving average is 166.58, creating a Buy signal.

Salesforce (CRM) Price Change Before and After Earnings Report

Looking at the last quarter report, there is a good more than 10% gain between the price, before and after the earning report.

I would take advantage of entering early when market open on 30 May 2023, but I will monitor the Price and Volume movement, as there is a tell tale of bearish movement.

I would expect a huge movement considering that there is a Unusual options activity (UOA).

It does pay to be cautious.

Summary

I would monitor and take the opportunity to enter around $210 as I expect the price to trend downwards when market open tomorrow (30 May).

But do trade cautiously as this stocks could fluctuate based on news as well.

Appreciate if you could share your thoughts in the comment section whether you will be looking to enter Salesforce (CRM) before its earning report on 31 May 2023.

Do like, share and comment on this article if you find this trading thought useful.

@TigerStars @Daily_Discussion appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.