SAP (NYSE:SAP) Releases Earnings Results, Beats Estimates By $0.15 EPS

Key Points

• SAP reported a quarterly earnings per share (EPS) of $1.86, exceeding analyst estimates of $1.71 by $0.15.
• Despite the earnings beat, SAP's stock price fell 1.4% to $276.64 following the announcement.
• Several analysts have increased their price targets for SAP, with Barclays raising its target to $322.00.

SAP (NYSE:SAP - Get Free Report) posted its earnings results on Wednesday. The software maker reported $1.86 EPS for the quarter, topping analysts' consensus estimates of $1.71 by $0.15, Zacks reports. SAP had a net margin of 18.26% and a return on equity of 14.84%.

SAP Stock Down 1.4%

NYSE SAP traded down $3.82 on Wednesday, hitting $276.64. 3,120,088 shares of the company were exchanged, compared to its average volume of 1,425,119. 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 company has a market cap of $339.85 billion, a PE ratio of 45.80, a PEG ratio of 4.13 and a beta of 1.28. The stock has a fifty day moving average of $269.65 and a 200-day moving average of $282.76. SAP has a 12 month low of $227.52 and a 12 month high of $313.28.

Hedge Funds Weigh In On SAP

A number of institutional investors have recently modified their holdings of the company. Brighton Jones LLC raised its holdings in shares of SAP by 91.1% in the 4th quarter. Brighton Jones LLC now owns 2,633 shares of the software maker's stock worth $648,000 after acquiring an additional 1,255 shares during the last quarter. Sivia Capital Partners LLC lifted its holdings in shares of SAP by 2.3% in the second quarter. Sivia Capital Partners LLC now owns 3,050 shares of the software maker's stock valued at $928,000 after purchasing an additional 69 shares in the last quarter. Keel Point LLC lifted its holdings in shares of SAP by 19.2% in the second quarter. Keel Point LLC now owns 3,152 shares of the software maker's stock valued at $959,000 after purchasing an additional 508 shares in the last quarter. Peapack Gladstone Financial Corp grew its holdings in SAP by 3.8% during the second quarter. Peapack Gladstone Financial Corp now owns 3,022 shares of the software maker's stock worth $919,000 after buying an additional 111 shares in the last quarter. Finally, Bank of Nova Scotia raised its position in SAP by 11.1% in the 2nd quarter. Bank of Nova Scotia now owns 3,013 shares of the software maker's stock valued at $916,000 after buying an additional 300 shares during the last quarter.

Wall Street Analyst Weigh In

Several equities analysts recently commented on SAP shares. Barclays reissued an "overweight" rating and issued a $322.00 price objective (up previously from $308.00) on shares of SAP in a research note on Friday, July 25th. Weiss Ratings reiterated a "buy (b)" rating on shares of SAP in a research note on Wednesday, October 8th. Oddo Bhf raised SAP from a "neutral" rating to an "outperform" rating in a report on Wednesday, September 24th. Wall Street Zen cut SAP from a "buy" rating to a "hold" rating in a report on Friday, October 3rd. Finally, Jefferies Financial Group reaffirmed a "buy" rating on shares of SAP in a research note on Tuesday, September 16th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $281.67.

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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