SAP (NYSE:SAP) Shares Gap Down - Time to Sell?

Key Points

• SAP's stock opened at $273.75, down from a previous close of $287.24, reflecting a significant gap down.
• Despite the recent drop in share price, analysts maintain a consensus rating of "Buy" with a target price of $281.67, which is above the current trading price.
• Recently reported earnings showed SAP achieved $1.70 EPS, surpassing estimates, indicating strong financial performance with an 8.9% year-over-year revenue growth.

SAP SE (NYSE:SAP - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $287.24, but opened at $273.75. SAP shares last traded at $271.06, with a volume of 503,505 shares changing hands.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. Jefferies Financial Group reissued a "buy" rating on shares of SAP in a research note on Friday, May 2nd. Piper Sandler began coverage on shares of SAP in a research report on Tuesday, June 17th. They set an "overweight" rating on the stock. Wells Fargo & Company began coverage on shares of SAP in a research note on Tuesday, May 20th. They set an "overweight" rating for the company. JMP Securities increased their price objective on shares of SAP from $330.00 to $375.00 and gave the company a "market outperform" rating in a report on Wednesday, July 23rd. Finally, BMO Capital Markets raised their price objective on SAP from $320.00 to $330.00 and gave the company an "outperform" rating in a research report on Friday, May 23rd. One equities research analyst has rated the stock with a hold rating, eleven have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and a consensus target price of $281.67.

SAP Trading Down 5.2%

The company's fifty day moving average is $297.66 and its 200-day moving average is $285.17. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.03 and a quick ratio of 1.03. The company has a market capitalization of $334.41 billion, a PE ratio of 45.07, a price-to-earnings-growth ratio of 4.20 and a beta of 1.27.

SAP (NYSE:SAP - Get Free Report) last posted its 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. SAP had a net margin of 18.26% and a return on equity of 14.84%. The company had revenue of $10.58 billion during the quarter, compared to the consensus estimate of $9.10 billion. During the same period in the previous year, the firm posted $1.10 earnings per share. The firm's quarterly revenue was up 8.9% on a year-over-year basis. On average, analysts anticipate that SAP SE will post 6.55 EPS for the current fiscal year.

Institutional Investors Weigh In On SAP

Several hedge funds have recently modified their holdings of SAP. Brighton Jones LLC boosted its stake in shares of SAP by 91.1% during 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 in the last quarter. Alliancebernstein L.P. lifted its stake in SAP by 15.7% in the 4th quarter. Alliancebernstein L.P. now owns 1,271 shares of the software maker's stock valued at $313,000 after buying an additional 172 shares in the last quarter. Invesco Ltd. lifted its stake in SAP by 9.0% in the 4th quarter. Invesco Ltd. now owns 151,709 shares of the software maker's stock valued at $37,352,000 after buying an additional 12,503 shares in the last quarter. Advisory Services Network LLC lifted its stake in SAP by 20.8% in the 4th quarter. Advisory Services Network LLC now owns 2,342 shares of the software maker's stock valued at $577,000 after buying an additional 403 shares in the last quarter. Finally, Rockefeller Capital Management L.P. lifted its stake in SAP by 9.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 22,491 shares of the software maker's stock valued at $5,520,000 after buying an additional 1,971 shares in the last quarter.

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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