A significant insider purchase and a wave of upgraded analyst ratings are converging to paint a bullish picture for Salesforce. The recent activity stands in stark contrast to the insider selling observed over previous months, including transactions by CEO Marc Benioff, prompting a closer look at the underlying drivers of this renewed confidence.
Analyst Consensus Shifts Upward
The positive sentiment is being echoed by research firms. Argus Research reaffirmed its “Buy” recommendation, raising its earnings forecasts. The firm now anticipates earnings per share of $11.76 for fiscal year 2026, up from a prior estimate of $11.37, and projects $12.97 for 2027, maintaining a $360 price target. Mizuho Securities reiterated its “Outperform” rating, while Morgan Stanley continues to recommend “Overweight” with a $398 target. The average analyst price target sits near $324, suggesting approximately 23% upside from recent trading levels around $264, which remains well below the 52-week high of $367.
The $25 Million Insider Transaction
At the center of this shift is a substantial purchase by board member G. Mason Morfit. On Wednesday, Morfit acquired 96,000 shares of the company’s stock for roughly $25 million. This move is notable for its contra-trend nature, directly opposing the pattern of insider sales that has dominated the last six months. Such a sizable acquisition by a director is widely interpreted as a strong signal of belief in the company’s current valuation and future trajectory.
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Accelerating Monetization of Artificial Intelligence
The fundamental catalyst for this optimism is Salesforce’s strategic pivot towards autonomous AI agents. The company’s third-quarter results provided tangible evidence of progress: revenue grew 9% to $10.26 billion. More critically, the annual recurring revenue (ARR) from its Agentforce and Data 360 products surged 114% to $1.4 billion. The quarter saw 9,500 paid Agentforce contracts, a 50% increase sequentially, demonstrating accelerating adoption.
Further momentum was announced this week, with Salesforce opening its AI platform to ISV (Independent Software Vendor) partners. In a concurrent development, DeVry University revealed it will deploy Agentforce for over 32,000 learners, underscoring the technology’s expanding real-world application.
Valuation and Forward Path
The next dividend payment of $0.416 per share is scheduled for January 8, 2026. Looking ahead, the long-term success of the AI strategy will be measured by the execution speed of new partner integrations and customer deployments. While the strategic direction is set, the operational execution in the coming quarters will be the true test. The recent $25 million insider investment suggests at least one key board member believes the company is on the right track.
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