SAP (NYSE:SAP) Reaches New 1-Year Low - What's Next?

Key Points

• SAP shares hit a new 52-week low, trading as low as $147.86 after closing previously at $154.34. The stock finished near $147.51 on heavy volume of about 2.36 million shares.
• Analysts remain cautiously positive overall, with a consensus rating of “Moderate Buy” and an average price target of $270.83. Recent moves were mixed, including upgrades from Santander and downgrades or target cuts from other firms.
• Fundamentals and earnings remain solid, as SAP reported $1.99 EPS on $11.06 billion in quarterly revenue and posted a 20.08% net margin. The company also has low debt, but its stock is trading below both its 50-day and 200-day moving averages.

SAP SE (NYSE:SAP - Get Free Report)'s stock price hit a new 52-week low during trading on Wednesday . The company traded as low as $147.86 and last traded at $147.5110, with a volume of 2358065 shares changing hands. The stock had previously closed at $154.34.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the company. JPMorgan Chase & Co. reiterated a "neutral" rating on shares of SAP in a research report on Tuesday, March 24th. Santander upgraded SAP from a "neutral" rating to an "outperform" rating in a research note on Friday, April 24th. BMO Capital Markets cut their price objective on SAP from $210.00 to $200.00 and set an "outperform" rating for the company in a research report on Friday, April 24th. Piper Sandler downgraded SAP from an "overweight" rating to a "neutral" rating in a report on Tuesday, April 14th. Finally, TD Cowen lowered their price target on shares of SAP from $230.00 to $210.00 and set a "buy" rating on the stock in a research note on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, SAP currently has a consensus rating of "Moderate Buy" and an average target price of $270.83.

SAP Price Performance

The firm has a market cap of $181.57 billion, a PE ratio of 19.97, a price-to-earnings-growth ratio of 1.82 and a beta of 1.14. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.11. The company has a 50 day moving average price of $166.38 and a 200 day moving average price of $185.91.

SAP (NYSE:SAP - Get Free Report) last released its quarterly earnings data on Friday, February 27th. The software maker reported $1.99 earnings per share for the quarter. The firm had revenue of $11.06 billion during the quarter. SAP had a return on equity of 17.31% and a net margin of 20.08%. On average, sell-side analysts expect that SAP SE will post 8.3 EPS for the current year.

Institutional Investors Weigh In On SAP

Institutional investors and hedge funds have recently made changes to their positions in the business. Sound Income Strategies LLC increased its holdings in SAP by 109.4% during the 4th quarter. Sound Income Strategies LLC now owns 111 shares of the software maker's stock valued at $26,000 after acquiring an additional 58 shares in the last quarter. Bayban acquired a new stake in shares of SAP in the fourth quarter valued at approximately $28,000. Annis Gardner Whiting Capital Advisors LLC increased its stake in shares of SAP by 758.8% during the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 146 shares of the software maker's stock worth $35,000 after purchasing an additional 129 shares in the last quarter. Riggs Asset Managment Co. Inc. raised its position in shares of SAP by 83.8% during the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 147 shares of the software maker's stock worth $45,000 after purchasing an additional 67 shares during the last quarter. Finally, American National Bank & Trust raised its position in shares of SAP by 641.7% during the 4th quarter. American National Bank & Trust now owns 178 shares of the software maker's stock worth $43,000 after purchasing an additional 154 shares during the last quarter.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.