Salesforce stock popped Monday on a report that activist investor Elliott Management has taken a multibillion-dollar investment in the enterprise software maker. Elliott Management joins hedge fund Starboard Value in targeting CRM stock.
Elliott Management has not yet pushed for representation on Salesforce's board of directors, according to a Wall Street Journal report. "Unlike the majority of public companies, Salesforce does not have a staggered board of directors," said a JMP Securities report. "All 13 members of the board are up for reelection this year and some may be vulnerable to stockholder activism for change."
Further, Starboard disclosed its stake in October.
Salesforce stock climbed 3.1% to close at 155.87 on the stock market today.
CRM stock has gained more than 17% so far in 2023. Shares of Salesforce retreated nearly 48% in 2022.
CRM Stock: Restructuring Plan
Meanwhile, Salesforce on Jan. 4 said it will cut 10% of its workforce and reduce office space as part of a restructuring plan amid expectations that revenue growth will slow in fiscal 2024.
The restructuring plan is "intended to reduce operating costs, improve operating margins, and continue advancing the company's ongoing commitment to profitable growth," Salesforce said in a regulatory filing.
Salesforce sells software under a subscription model. Its software helps businesses organize and handle sales operations and customer relationships. In addition, the company has expanded into marketing, e-commerce and data analytics.
Also, the enterprise software maker in 2022 announced a $10 billion buyback on CRM stock.
According to IBD Stock Checkup, shares currently have a Relative Strength Rating of 19 out of a best-possible 99. Also, the best stocks tend to have ratings of 80 and above.
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