Is salesforce.com, Inc. (NYSE:CRM) ready to rally soon? The best stock pickers are in an optimistic mood. The number of long hedge-fund positions went up by five recently.
The provider of social-enterprise solutions and enterprise cloud-computing solutions is having an excellent period. salesforce.com, Inc. acquired Clipboard Inc and ExactTarget Inc this year. Last quarter’s results were very good with revenues increasing by 36 percent on a year-on-year basis, unbilled or deferred revenues also grew by 34 percent. With free cash flows of $64 million and operating cash flows of $138 million, the company had $1.09 billion in cash and marketable securities at the end of the quarter. The company is expected to have revenues of $5.15 – $5.25 billion in fiscal 2015 and will be the first enterprise cloud company to cross the $5 billion mark.
How have hedgies been trading salesforce.com, Inc. (NYSE:CRM)?
In preparation for this quarter, 50 of the hedge funds tracked by the hedge-fund intelligence website, Insider Monkey, were bullish in this stock, an 11-percent increase from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge-fund managers who were boosting their holdings significantly.
Christopher Lord’s Criterion Capital had the biggest position in salesforce.com, Inc. (NYSE:CRM), worth close to $104.3 million, corresponding to 3.7 percent of its total 13F portfolio. The hedge fund showed its optimism by increasing the investment by 5 percent in the third quarter. Coming in second is Christopher Medlock James of Partner Fund Management, with a $90-million position; the fund has 2.2 percent of its portfolio invested in the stock. Other hedgies that hold long positions consist of Jim Simons’ Renaissance Technologies, Steven Cohen’s SAC Capital Advisors and Phill Gross and Robert Atchinson’s Adage Capital Management.
Now, some big names have been driving this bullishness. Soros Fund Management, managed by George Soros, established the biggest position in salesforce.com, Inc. (NYSE:CRM). Soros Fund Management had $22.1 million invested in the company at the end of the quarter. Daniel Benton’s Andor Capital Management also initiated a $20.8-million position during the quarter. The other funds with new positions in the stock are Andrew Sandler’s Sandler Capital Management, Millennium Management Subsidiary’s Green Arrow Capital Management, and Leon Shaulov’s Maplelane Capital.
What have insiders been doing with salesforce.com, Inc. (NYSE:CRM)?
Over the latest 180-day time frame, salesforce.com, Inc. (NYSE:CRM) has seen zero unique insider purchases and 12 insider sales (see the details of insider trades here).
Let’s also examine hedge-fund and insider activity in other stocks similar to salesforce.com, Inc. (NYSE:CRM). These stocks are Workday Inc (NYSE:WDAY), Catamaran Corp (USA) (NASDAQ:CTRX), CA, Inc. (NASDAQ:CA), Intuit Inc. (NASDAQ:INTU), and Adobe Systems Incorporated (NASDAQ:ADBE). These are in the application software industry and their market caps match CRM’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Workday Inc (NYSE:WDAY)||36||0||8|
|Catamaran Corp (USA) (NASDAQ:CTRX)||33||0||0|
|CA, Inc. (NASDAQ:CA)||17||0||5|
|Intuit Inc. (NASDAQ:INTU)||29||0||7|
|Adobe Systems Incorporated (NASDAQ:ADBE)||39||0||12|
salesforce.com, Inc. (NYSE:CRM) is heavily favored by hedge fund managers with 50 managers investing in the company, Adobe Systems Incorporated (NASDAQ:ADBE) comes in second place. Both salesforce.com, Inc. and Adobe Systems Incorporated are equally favored by insiders.