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Strategic Partnership Pushes CRM Back Towards Record Highs

Optimism surrounding CRM is already incredibly high

Digital Content Manager
Jun 23, 2020 at 9:09 AM
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The shares of Salesforce.com, Inc. (NYSE:CRM) are up 1% to trade at $193.50, inching even closer to their Feb. 20 all-time high of $195.72. This comes after the company announced a strategic partnership with German firm Siemens to develop a new workplace technology suite allowing businesses to safely return to work following months of lockdown measures. The software will ensure a connected physical workplace while aiding in social distancing. 

CRM's return to near-record highs has been nothing short of impressive. The stock has tacked on 67.8% since its mid-March plummet to annual lows, with an early June pullback deftly caught by its 40-day moving average. Year-to-date, Salesforce stock boasts a roughly 18% lead. 

Analyst sentiment is overwhelmingly optimistic. Of the 27 in coverage, all but one call the tech stock a "buy" or better. Plus, the 12-month consensus price target of $199.05 has yet to be touched by the security, and represents a 3.9% premium to last night's close. 

Options players have followed suit. This is per CRM's 10-day put/call volume ratio of 3.46 at the  International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 94% of readings from the past year. This means long-term options traders have rarely been more bullish. 

 

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