SAP (NYSE:SAP) Shares Gap Down on Disappointing Earnings

Shares of SAP SE (NYSE:SAP) gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $275.60, but opened at $269.94. SAP shares last traded at $270.01, with a volume of 258,399 shares.

The software maker reported $1.49 earnings per share for the quarter, missing analysts’ consensus estimates of $1.51 by ($0.02). SAP had a return on equity of 11.44% and a net margin of 8.15%.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. Kepler Capital Markets upgraded shares of SAP from a “hold” rating to a “buy” rating in a research report on Wednesday, January 15th. BMO Capital Markets lifted their price objective on SAP from $248.00 to $265.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 22nd. JMP Securities raised their price target on SAP from $245.00 to $300.00 and gave the stock a “market outperform” rating in a research report on Tuesday, October 22nd. TD Cowen upgraded SAP from a “hold” rating to a “buy” rating and upped their price objective for the company from $240.00 to $305.00 in a research report on Friday, January 17th. Finally, Barclays lifted their price target on shares of SAP from $275.00 to $283.00 and gave the stock an “overweight” rating in a report on Thursday, January 23rd. Ten equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the stock presently has an average rating of “Buy” and an average target price of $276.00.

Institutional Investors Weigh In On SAP

A number of institutional investors have recently bought and sold shares of SAP. Godsey & Gibb Inc. acquired a new position in shares of SAP in the 3rd quarter valued at about $25,000. Union Bancaire Privee UBP SA purchased a new position in SAP in the fourth quarter valued at approximately $27,000. Albion Financial Group UT lifted its position in SAP by 122.4% during the fourth quarter. Albion Financial Group UT now owns 129 shares of the software maker’s stock valued at $32,000 after buying an additional 71 shares in the last quarter. Brooklyn Investment Group purchased a new stake in SAP during the third quarter worth approximately $42,000. Finally, Financial Management Professionals Inc. increased its position in shares of SAP by 104.0% in the fourth quarter. Financial Management Professionals Inc. now owns 202 shares of the software maker’s stock worth $50,000 after acquiring an additional 103 shares in the last quarter.

SAP Stock Performance

The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 0.17. The firm has a market cap of $335.99 billion, a PE ratio of 109.40, a P/E/G ratio of 3.89 and a beta of 1.22. The stock’s 50 day moving average price is $250.48 and its 200 day moving average price is $231.22.

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.