SAP (NYSE:SAP) Lifted to “Hold” at Zacks Investment Research

SAP (NYSE:SAP) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Wednesday, September 12th.

According to Zacks, ” SAP is one of the largest independent software vendors  and the leading provider of enterprise resource planning (ERP) software. Solid adoption of SAP’s Human Capital management (HCM) solution, SuccessFactors Employee Central and S/4HANA platform are expected to increase new cloud bookings, consequently bolstering top line. The company constantly upgrades the existing products and launches fresh ones to expand its customer base, consequently offering a competitive edge over peers. However, inherent seasonality in clients’ technology spending exposes the company’s sales to risks of quarterly fluctuations. Currency fluctuations are also hurting its financial performance, particularly the Americas region. Notably, shares of SAP have underperformed the industry over the one past year.”

SAP has been the topic of several other reports. Oppenheimer upped their price objective on shares of SAP from $125.00 to $130.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 18th. Royal Bank of Canada reaffirmed a “$121.96” rating on shares of SAP in a research note on Wednesday, July 18th. ValuEngine upgraded shares of SAP from a “hold” rating to a “buy” rating in a research report on Tuesday, July 10th. Deutsche Bank reiterated a “buy” rating on shares of SAP in a research report on Friday, July 20th. Finally, Barclays reduced their target price on shares of SAP from $134.00 to $128.00 and set an “overweight” rating on the stock in a research report on Friday, July 20th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and twelve have assigned a buy rating to the company’s stock. SAP has an average rating of “Buy” and an average price target of $113.70.

Shares of SAP stock traded down $1.97 on Wednesday, hitting $120.09. The company’s stock had a trading volume of 528,112 shares, compared to its average volume of 946,261. The firm has a market cap of $151.11 billion, a PE ratio of 27.99, a PEG ratio of 3.82 and a beta of 1.23. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.25. SAP has a fifty-two week low of $99.20 and a fifty-two week high of $127.16.

SAP (NYSE:SAP) last released its earnings results on Thursday, July 19th. The software maker reported $0.98 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.98. SAP had a net margin of 17.92% and a return on equity of 18.07%. The firm had revenue of $6 billion during the quarter, compared to analyst estimates of $5.90 billion. During the same quarter in the previous year, the business earned $0.94 EPS. The business’s revenue was up 3.8% on a year-over-year basis. As a group, analysts forecast that SAP will post 4.39 EPS for the current fiscal year.

Institutional investors have recently added to or reduced their stakes in the stock. Signaturefd LLC lifted its stake in shares of SAP by 18.3% during the 1st quarter. Signaturefd LLC now owns 2,883 shares of the software maker’s stock worth $303,000 after buying an additional 447 shares during the last quarter. Naples Global Advisors LLC raised its stake in SAP by 2.9% in the 2nd quarter. Naples Global Advisors LLC now owns 16,195 shares of the software maker’s stock worth $1,873,000 after purchasing an additional 450 shares in the last quarter. Chevy Chase Trust Holdings Inc. raised its stake in SAP by 1.1% in the 2nd quarter. Chevy Chase Trust Holdings Inc. now owns 40,183 shares of the software maker’s stock worth $4,647,000 after purchasing an additional 451 shares in the last quarter. Ballentine Partners LLC raised its stake in SAP by 10.5% in the 2nd quarter. Ballentine Partners LLC now owns 4,805 shares of the software maker’s stock worth $556,000 after purchasing an additional 456 shares in the last quarter. Finally, Icon Wealth Partners LLC raised its stake in SAP by 35.2% in the 1st quarter. Icon Wealth Partners LLC now owns 1,796 shares of the software maker’s stock worth $189,000 after purchasing an additional 468 shares in the last quarter. 4.52% of the stock is owned by institutional investors and hedge funds.

About SAP

SAP SE operates as an enterprise application software, and analytics and business intelligence company worldwide. It offers SAP HANA, which enables businesses to process and analyze live data; SAP Data Hub, a solution that enables businesses to manage data from various sources; SAP Cloud Platform, which enables businesses to connect and integrate applications; SAP BW/4HANA, a data warehouse solution; SAP Leonardo, a system that enables customers to make business sense and opportunity of disruptive technologies; and SAP Analytics Cloud, which leverages the intersection of business intelligence, planning, and predictive analytics.

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