SAP (NYSE:SAP) Downgraded by Wall Street Zen to Hold

Key Points

• SAP has been downgraded from a "buy" rating to a "hold" rating by Wall Street Zen, indicating a shift in analyst sentiment towards the company's stock.
• Despite the downgrade, SAP maintains an average rating of "Buy" among analysts, with a consensus price target set at $281.67.
• Recent earnings results showed SAP beating estimates with $1.70 EPS and a revenue of $10.58 billion, reflecting an 8.9% year-over-year growth.

SAP (NYSE:SAP - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Friday.

A number of other analysts also recently issued reports on SAP. Erste Group Bank downgraded SAP from a "buy" rating to a "hold" rating in a research report on Thursday, August 14th. Piper Sandler began coverage on SAP in a research report on Tuesday, June 17th. They set an "overweight" rating for the company. Jefferies Financial Group restated a "buy" rating on shares of SAP in a research report on Tuesday, September 16th. Weiss Ratings restated a "buy (b)" rating on shares of SAP in a research report on Saturday, September 27th. Finally, Barclays restated an "overweight" rating and issued a $322.00 target price (up previously from $308.00) on shares of SAP in a research report on Friday, July 25th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, SAP has an average rating of "Buy" and a consensus price target of $281.67.

SAP Price Performance

Shares of SAP traded down $1.43 during trading hours on Friday, reaching $270.48. 1,027,467 shares of the company's stock traded hands, compared to its average volume of 2,058,015. The stock has a market cap of $332.29 billion, a PE ratio of 44.78, a price-to-earnings-growth ratio of 3.91 and a beta of 1.28. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.15. The firm's 50 day simple moving average is $272.89 and its 200-day simple moving average is $282.33. SAP has a 12 month low of $217.51 and a 12 month high of $313.28.

SAP (NYSE:SAP - Get Free Report) last issued its quarterly earnings results on Tuesday, July 22nd. The software maker reported $1.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.63 by $0.07. The firm had revenue of $10.58 billion during the quarter, compared to the consensus estimate of $9.10 billion. SAP had a return on equity of 14.84% and a net margin of 18.26%.The company's revenue for the quarter was up 8.9% on a year-over-year basis. During the same quarter last year, the company posted $1.10 EPS. Equities analysts expect that SAP will post 6.55 EPS for the current year.

Hedge Funds Weigh In On SAP

A number of large investors have recently bought and sold shares of the stock. Contravisory Investment Management Inc. increased its stake in SAP by 3.2% in the 2nd quarter. Contravisory Investment Management Inc. now owns 1,113 shares of the software maker's stock worth $338,000 after purchasing an additional 34 shares during the period. Independent Advisor Alliance increased its stake in SAP by 0.4% in the 1st quarter. Independent Advisor Alliance now owns 9,957 shares of the software maker's stock worth $2,673,000 after purchasing an additional 35 shares during the period. Cordatus Wealth Management LLC increased its stake in SAP by 1.1% in the 1st quarter. Cordatus Wealth Management LLC now owns 3,310 shares of the software maker's stock worth $889,000 after purchasing an additional 37 shares during the period. Sage Rhino Capital LLC increased its stake in SAP by 1.1% in the 2nd quarter. Sage Rhino Capital LLC now owns 3,438 shares of the software maker's stock worth $1,045,000 after purchasing an additional 37 shares during the period. Finally, LCM Capital Management Inc increased its stake in SAP by 1.9% in the 1st quarter. LCM Capital Management Inc now owns 2,074 shares of the software maker's stock worth $557,000 after purchasing an additional 39 shares during the period.

About SAP

SAP SE, together with its subsidiaries, provides applications, technology, and services worldwide. It offers SAP S/4HANA that provides software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management, and research and development; SAP SuccessFactors solutions for human resources, including HR and payroll, talent and employee experience management, and people and workforce analytics; and spend management solutions that covers direct and indirect spend, travel and expense, and external workforce management.

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