SAP (NYSE:SAP) Trading Up 7% on Analyst Upgrade

Key Points

• SAP shares rose 7% to about $171 after BMO Capital Markets raised its price target from $175 to $177 and maintained an “outperform” rating.
• Analyst sentiment remains broadly positive: SAP has an average “Moderate Buy” rating and a consensus price target of $264.83, despite some recent target cuts and downgrades.
• SAP reported quarterly revenue of $11.06 billion and earnings of $1.99 per share; analysts expect full-year EPS of approximately $8.26.

SAP SE (NYSE:SAP - Get Free Report)'s share price traded up 7% during mid-day trading on Monday after BMO Capital Markets raised their price target on the stock from $175.00 to $177.00. BMO Capital Markets currently has an outperform rating on the stock. SAP traded as high as $171.22 and last traded at $171.1340. 1,469,008 shares changed hands during trading, a decline of 54% from the average session volume of 3,203,490 shares. The stock had previously closed at $160.00.

Other equities analysts have also recently issued reports about the stock. TD Cowen cut their target price on shares of SAP from $230.00 to $210.00 and set a "buy" rating for the company in a research note on Friday, July 17th. Piper Sandler downgraded shares of SAP from an "overweight" rating to a "neutral" rating in a report on Tuesday, April 14th. HSBC upgraded SAP from a "hold" rating to a "buy" rating in a research report on Wednesday, April 22nd. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $265.00 target price on shares of SAP in a report on Wednesday, June 10th. Finally, Weiss Ratings lowered SAP from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat, SAP presently has an average rating of "Moderate Buy" and an average target price of $264.83.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. Binnacle Investments Inc raised its holdings in shares of SAP by 14.2% in the third quarter. Binnacle Investments Inc now owns 338 shares of the software maker's stock worth $90,000 after buying an additional 42 shares during the period. Spire Wealth Management grew its position in SAP by 6.2% in the 4th quarter. Spire Wealth Management now owns 740 shares of the software maker's stock valued at $180,000 after acquiring an additional 43 shares during the last quarter. Thrivent Financial for Lutherans increased its stake in SAP by 1.0% in the second quarter. Thrivent Financial for Lutherans now owns 4,495 shares of the software maker's stock worth $1,355,000 after purchasing an additional 43 shares during the period. Euro Pacific Asset Management LLC increased its stake in SAP by 5.7% in the fourth quarter. Euro Pacific Asset Management LLC now owns 870 shares of the software maker's stock worth $213,000 after purchasing an additional 47 shares during the period. Finally, Modera Wealth Management LLC lifted its position in shares of SAP by 1.2% during the fourth quarter. Modera Wealth Management LLC now owns 3,912 shares of the software maker's stock worth $950,000 after purchasing an additional 48 shares during the last quarter.

SAP Price Performance

The stock's 50 day moving average price is $165.59 and its 200-day moving average price is $184.04. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.11. The stock has a market capitalization of $210.61 billion, a PE ratio of 21.49, a price-to-earnings-growth ratio of 1.84 and a beta of 1.14.

SAP (NYSE:SAP - Get Free Report) last posted its quarterly earnings results on Friday, February 27th. The software maker reported $1.99 EPS for the quarter. SAP had a net margin of 20.88% and a return on equity of 17.16%. The company had revenue of $11.06 billion for the quarter. As a group, equities analysts forecast that SAP SE will post 8.26 EPS for the current year.

SAP Company Profile

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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