SAP (NYSE:SAP) Shares Gap Down - Here's Why

Key Points

• SAP shares fell 3.3%, opening at $208.58 after closing at $216.93, amid a trading volume of nearly 500,000 shares.
• The company’s latest quarterly results fell short of expectations: adjusted EPS was $1.82 versus the $2.00 consensus, while revenue reached $11.27 billion against estimates of $11.30 billion. Revenue still increased 9.4% year over year.
• Despite the decline, analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $264.83, implying substantial upside from recent trading levels.

SAP SE (NYSE:SAP - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $216.93, but opened at $208.58. SAP shares last traded at $210.9920, with a volume of 499,771 shares changing hands.

Wall Street Analyst Weigh In

SAP has been the subject of a number of recent analyst reports. Morgan Stanley reaffirmed an "overweight" rating on shares of SAP in a research report on Friday. The Goldman Sachs Group reiterated a "buy" rating and issued a $265.00 target price on shares of SAP in a report on Wednesday, June 10th. BMO Capital Markets lifted their price objective on SAP from $175.00 to $177.00 and gave the stock an "outperform" rating in a research note on Friday, July 24th. Oppenheimer reissued a "market perform" rating on shares of SAP in a research report on Friday, July 24th. Finally, Weiss Ratings raised SAP from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $264.83.

SAP Stock Down 3.3%

The firm has a 50 day moving average of $176.31 and a 200-day moving average of $179.83. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.15 and a quick ratio of 1.15. The stock has a market capitalization of $257.62 billion, a P/E ratio of 26.34, a price-to-earnings-growth ratio of 2.57 and a beta of 1.12.

SAP (NYSE:SAP - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The software maker reported $1.82 EPS for the quarter, missing analysts' consensus estimates of $2.00 by ($0.18). The firm had revenue of $11.27 billion during the quarter, compared to the consensus estimate of $11.30 billion. SAP had a return on equity of 17.07% and a net margin of 20.88%.SAP's revenue was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.50 EPS. On average, equities research analysts expect that SAP SE will post 8.15 earnings per share for the current fiscal year.

Institutional Investors Weigh In On SAP

Several institutional investors and hedge funds have recently bought and sold shares of the business. Windacre Partnership LLC lifted its holdings in shares of SAP by 130.9% during the 3rd quarter. Windacre Partnership LLC now owns 2,357,225 shares of the software maker's stock worth $629,874,000 after acquiring an additional 1,336,325 shares during the period. Bank of America Corp DE lifted its stake in SAP by 58.1% during the second quarter. Bank of America Corp DE now owns 2,650,418 shares of the software maker's stock worth $805,992,000 after purchasing an additional 973,779 shares during the period. Arrowstreet Capital Limited Partnership bought a new position in SAP during the first quarter worth about $150,701,000. Sustainable Growth Advisers LP boosted its holdings in SAP by 1,126.3% during the third quarter. Sustainable Growth Advisers LP now owns 842,416 shares of the software maker's stock valued at $225,102,000 after purchasing an additional 773,720 shares in the last quarter. Finally, Ruane Cunniff & Goldfarb L.P. grew its stake in shares of SAP by 1,532.8% in the 1st quarter. Ruane Cunniff & Goldfarb L.P. now owns 749,909 shares of the software maker's stock valued at $128,392,000 after purchasing an additional 703,982 shares during the period.

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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