SAP SE (NYSE:SAP – Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $216.93, but opened at $208.58. SAP shares last traded at $210.9920, with a volume of 499,771 shares trading hands.
SAP News Summary
Here are the key news stories impacting SAP this week:
- Positive Sentiment: Analyst commentary argues SAP’s rebound has further room to run, citing strong cloud revenue and backlog growth, a proposed €10 billion share-buyback program through 2027, and recent AI and data acquisitions that could support long-term earnings and strategic positioning. SAP’s Rebound Has Further To Run Despite AI Execution Risks
- Positive Sentiment: SK AX and SAP strengthened their AI alliance to redesign enterprise workflows, reinforcing SAP’s role in embedding AI into core business processes and potentially improving future product adoption. SK AX, SAP strengthen AI alliance to redesign enterprise workflows
- Positive Sentiment: UTA Pay by United TranzActions received certification for integration with SAP cloud solutions, supporting SAP’s ecosystem and offering customers streamlined payment processing with reduced PCI-compliance exposure. UTA Pay Is Certified as Integrated with SAP Cloud Solutions
- Positive Sentiment: Analysts cited in a separate report set an average SAP price target of $264.83, indicating potential upside from recent trading levels. Analysts Set SAP SE Price Target at $264.83
- Neutral Sentiment: Guidance on migrating from SAP Transportation Management 9.5/9.6 to SAP S/4HANA Transportation Management highlights ongoing modernization of customers’ SAP environments, but does not represent a material new financial catalyst by itself. SAP Transportation Management Migration Guide
- Negative Sentiment: UBS downgraded SAP from Buy to Neutral, warning that customers are adopting agentic AI tools more slowly than expected and that SAP’s “out-of-the-box” AI agent rollout is lagging. The report also points to pressure on margins because cloud services carry lower margins than legacy support revenue. SAP Shares Fall as UBS Downgrades on AI Monetization Concerns
- Negative Sentiment: The downgrade added to broader software-sector weakness, as investors questioned whether enterprise software companies can translate heavy AI investment into near-term revenue growth. SAP Stock Downgrade Adds to Software Pain
Wall Street Analysts Forecast Growth
SAP has been the subject of several research analyst reports. TD Cowen restated a “buy” rating on shares of SAP in a report on Friday, July 24th. Oppenheimer reissued a “market perform” rating on shares of SAP in a research report on Friday, July 24th. Jefferies Financial Group lowered SAP from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 24th. BMO Capital Markets upped their price target on SAP from $175.00 to $177.00 and gave the stock an “outperform” rating in a research note on Friday, July 24th. Finally, Citigroup reissued a “buy” rating on shares of SAP in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $264.83.
SAP Stock Up 4.6%
The company’s fifty day moving average price is $178.67 and its 200-day moving average price is $180.05. The stock has a market capitalization of $271.96 billion, a PE ratio of 27.81, a price-to-earnings-growth ratio of 2.49 and a beta of 1.12. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 0.19.
SAP (NYSE:SAP – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The software maker reported $1.82 EPS for the quarter, missing analysts’ consensus estimates of $2.00 by ($0.18). SAP had a return on equity of 17.07% and a net margin of 20.88%.The company had revenue of $11.27 billion during the quarter, compared to the consensus estimate of $11.30 billion. During the same period in the prior year, the firm earned $1.50 earnings per share. The business’s revenue for the quarter was up 9.4% compared to the same quarter last year. Analysts forecast that SAP SE will post 8.15 earnings per share for the current year.
Institutional Investors Weigh In On SAP
Institutional investors have recently modified their holdings of the stock. Angeles Wealth Management LLC raised its position in shares of SAP by 15.5% in the 2nd quarter. Angeles Wealth Management LLC now owns 3,560 shares of the software maker’s stock worth $549,000 after purchasing an additional 479 shares during the last quarter. Markowski Investments purchased a new stake in SAP during the 2nd quarter valued at about $41,000. Syon Capital LLC increased its stake in SAP by 6.6% during the 2nd quarter. Syon Capital LLC now owns 5,996 shares of the software maker’s stock valued at $924,000 after purchasing an additional 373 shares in the last quarter. Concurrent Investment Advisors LLC increased its stake in SAP by 26.2% during the 2nd quarter. Concurrent Investment Advisors LLC now owns 10,084 shares of the software maker’s stock valued at $1,554,000 after purchasing an additional 2,091 shares in the last quarter. Finally, Continuum Advisory LLC purchased a new position in SAP in the second quarter worth about $31,000.
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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