SAP (SAP) Lowered to Hold at Zacks Investment Research
Zacks Investment Research downgraded shares of SAP (NYSE:SAP) from a buy rating to a hold rating in a report issued on Tuesday.
According to Zacks, “SAP’s long-term growth drivers include resiliency of its Cloud and Software business, presence of a large business network and dominance over critical client demand areas, namely customer engagement and human capital management. SAP’s Customer Engagement and Commerce solutions once again achieved double-digit growth in new cloud bookings as well as software revenue. Of late, growth of the company’s S/4HANA and other Cloud initiatives has been spectacular, which, in turn, has been boosting financials. However, on the flip side, the company’s shares have underperformed the industry average year to date. Intensifying competition in the IT services industry and currency fluctuations are affecting profits. Prolonged softness in certain end markets and inherent seasonality in clients’ technology spending exposes the company’s sales to risks of quarterly fluctuations.”
A number of other analysts have also recently issued reports on SAP. Royal Bank of Canada reiterated a neutral rating on shares of SAP in a report on Monday, October 16th. Morgan Stanley reiterated a buy rating on shares of SAP in a report on Monday, October 16th. BMO Capital Markets reiterated a hold rating and set a $110.00 target price on shares of SAP in a report on Friday, October 13th. DZ Bank reiterated a buy rating on shares of SAP in a report on Thursday, October 19th. Finally, Berenberg Bank assumed coverage on SAP in a report on Wednesday, August 23rd. They set a buy rating for the company. One investment analyst has rated the stock with a sell rating, four have issued a hold rating and fifteen have issued a buy rating to the company’s stock. SAP presently has an average rating of Buy and a consensus price target of $106.73.
Shares of SAP (NYSE:SAP) opened at $112.67 on Tuesday. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 0.24. The company has a market capitalization of $137,684.88, a PE ratio of 31.21, a price-to-earnings-growth ratio of 3.23 and a beta of 1.13. SAP has a fifty-two week low of $84.14 and a fifty-two week high of $116.90.
SAP (NYSE:SAP) last issued its earnings results on Thursday, October 19th. The software maker reported $1.01 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.89 by $0.12. SAP had a return on equity of 15.43% and a net margin of 15.80%. The business had revenue of $5.59 billion during the quarter, compared to analysts’ expectations of $5.68 billion. The company’s revenue was up 4.0% compared to the same quarter last year. equities research analysts forecast that SAP will post 4.13 earnings per share for the current fiscal year.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SAP. Harding Loevner LP boosted its holdings in SAP by 4,590.3% in the 3rd quarter. Harding Loevner LP now owns 267,928,144 shares of the software maker’s stock worth $402,798,000 after acquiring an additional 262,215,799 shares during the period. FMR LLC raised its position in shares of SAP by 6,475.0% in the 2nd quarter. FMR LLC now owns 396,409 shares of the software maker’s stock valued at $41,493,000 after purchasing an additional 390,380 shares in the last quarter. Canada Pension Plan Investment Board acquired a new position in shares of SAP in the 3rd quarter valued at approximately $33,601,000. Sustainable Growth Advisers LP raised its position in shares of SAP by 8.9% in the 2nd quarter. Sustainable Growth Advisers LP now owns 2,567,035 shares of the software maker’s stock valued at $268,691,000 after purchasing an additional 210,664 shares in the last quarter. Finally, Fisher Asset Management LLC raised its position in shares of SAP by 2.1% in the 3rd quarter. Fisher Asset Management LLC now owns 6,599,155 shares of the software maker’s stock valued at $723,597,000 after purchasing an additional 136,874 shares in the last quarter. Hedge funds and other institutional investors own 3.68% of the company’s stock.
SAP Company Profile
SAP SE (SAP) is a software and service provider. The Company offers enterprise application software. The Company operates through two segments: Applications, Technology & Services segment, and the SAP Business Network segment. The Applications, Technology & Services segment is engaged in the sale of software licenses, subscriptions to its cloud applications, and related services (primarily support services and various professional services, and support services, as well as implementation services of its software products and education services on the use of its products).
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