Sterling Investment Management LLC Makes New Investment in SAP SE $SAP

Key Points

• Sterling Investment Management bought a new position of 6,224 shares of SAP in Q4 valued at about $1.512 million, representing roughly 0.9% of its portfolio and ranking as its 29th-largest holding.
• SAP is accelerating its AI strategy by acquiring Dremio and Prior Labs and committing more than €1 billion over four years to build a European frontier AI lab focused on tabular foundation models, aimed at boosting its Business Data Cloud and premium AI services.
• SAP raised its annual dividend to $2.9291 (up from $2.54), with shareholders of record on May 5 and payment scheduled for May 15, signaling continued shareholder returns alongside AI investments.

Sterling Investment Management LLC bought a new position in shares of SAP SE (NYSE:SAP - Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 6,224 shares of the software maker's stock, valued at approximately $1,512,000. SAP makes up about 0.9% of Sterling Investment Management LLC's portfolio, making the stock its 29th biggest position.

Other institutional investors have also recently bought and sold shares of the company. Abich Financial Wealth Management LLC bought a new stake in shares of SAP during the third quarter worth about $27,000. Copia Wealth Management bought a new stake in shares of SAP during the third quarter worth about $28,000. Sound Income Strategies LLC grew its holdings in shares of SAP by 109.4% during the fourth quarter. Sound Income Strategies LLC now owns 111 shares of the software maker's stock worth $26,000 after purchasing an additional 58 shares during the last quarter. Guerra Advisors Inc bought a new stake in shares of SAP during the third quarter worth about $31,000. Finally, Community Bank N.A. bought a new stake in shares of SAP during the third quarter worth about $32,000.

SAP Stock Performance

Shares of SAP stock opened at $171.41 on Tuesday. The business's 50 day simple moving average is $180.99 and its 200 day simple moving average is $219.17. SAP SE has a one year low of $160.66 and a one year high of $313.28. The stock has a market capitalization of $210.58 billion, a PE ratio of 23.16, a PEG ratio of 1.92 and a beta of 1.11. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.07 and a quick ratio of 1.07.

SAP (NYSE:SAP - Get Free Report) last announced its earnings results on Friday, February 27th. The software maker reported $1.99 EPS for the quarter. SAP had a return on equity of 17.31% and a net margin of 20.08%.The business had revenue of $11.06 billion for the quarter. As a group, research analysts forecast that SAP SE will post 8.35 earnings per share for the current year.

SAP Increases Dividend

The firm also recently declared an annual dividend, which will be paid on Friday, May 15th. Shareholders of record on Tuesday, May 5th will be paid a $2.9291 dividend. This represents a yield of 171.0%. This is a boost from SAP's previous annual dividend of $2.54. The ex-dividend date of this dividend is Tuesday, May 5th. SAP's payout ratio is presently 24.86%.

SAP News Summary

Here are the key news stories impacting SAP this week:

• Positive Sentiment: SAP agreed to buy Dremio to unify SAP and non‑SAP data into a high‑performance lakehouse aimed at accelerating agentic AI and real‑time analytics — this strengthens SAP’s Business Data Cloud and should improve its ability to sell premium AI services to existing customers. PR Newswire: SAP to Acquire Dremio
• Positive Sentiment: SAP announced it will acquire Prior Labs and commit more than €1 billion over four years to build a European frontier AI lab focused on tabular foundation models — this reinforces SAP’s early lead in TFM research and could drive long‑term high‑margin software revenue. PR Newswire: SAP to Acquire Prior Labs
• Positive Sentiment: Market and press coverage frames the two acquisitions plus the €1B+ investment as a coherent AI strategy (tabular models + data platform + agentic AI), which supports upside expectations for SAP’s cloud subscription and services growth. SiliconANGLE: SAP acquires Dremio, Prior Labs
• Neutral Sentiment: SAP executives are emphasizing data integrity as central to AI success — this is a strategic messaging point that supports adoption but won’t itself move near‑term financials. FedScoop: SAP’s Tahera Zamanzada on data integrity
• Neutral Sentiment: Coverage noting SAP’s intent to block unauthorized AI agents (e.g., OpenClaw) signals tighter controls over how external AI tools access SAP systems; this is governance‑oriented and may be positive for security but is implementation‑dependent. The Information: SAP moves to block OpenClaw
• Negative Sentiment: SAP’s new API policy that restricts AI access has drawn criticism from customer groups (DSAG) and some partners — this raises execution and customer‑satisfaction risk that could slow enterprise adoption or create churn if not resolved. CIO: DSAG criticizes SAP’s new API policy
• Positive Sentiment: Separately, coverage highlighted an upcoming €2.50 dividend — a visible shareholder return that can reassure income‑oriented investors while SAP pursues AI investments. Yahoo Finance: SAP to pay €2.50 dividend

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Zacks Research cut SAP from a "strong-buy" rating to a "hold" rating in a report on Thursday, March 5th. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of SAP in a report on Friday, January 30th. Wall Street Zen upgraded SAP from a "hold" rating to a "buy" rating in a report on Saturday. JPMorgan Chase & Co. restated a "neutral" rating on shares of SAP in a report on Tuesday, March 24th. Finally, Citizens Jmp cut SAP from an "outperform" rating to a "market perform" rating in a report on Friday, January 30th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, SAP has an average rating of "Moderate Buy" and an average price target of $288.00.

About SAP

SAP SE is a global enterprise software company headquartered in Walldorf, Germany. Founded in 1972 by five former IBM engineers, the company's name is an acronym for Systeme, Anwendungen und Produkte in der Datenverarbeitung (Systems, Applications & Products in Data Processing). SAP develops and sells software and services that help organizations manage business processes across finance, human resources, procurement, manufacturing, supply chain and customer relationships.

SAP's product portfolio spans on‑premises and cloud offerings, anchored by its enterprise resource planning (ERP) solutions such as SAP S/4HANA and the SAP HANA in‑memory database and platform.

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