SAP (NYSE:SAP) Shares Gap Down – What’s Next?

SAP SE (NYSE:SAP) shares gapped down before the market opened on Thursday . The stock had previously closed at $170.30, but opened at $163.84. SAP shares last traded at $163.13, with a volume of 1,041,305 shares traded.

More SAP News

Here are the key news stories impacting SAP this week:

• Positive Sentiment: SAP and Deloitte launched an AI-led delivery center in Bengaluru that could hire up to 500 AI specialists, signaling continued investment in enterprise AI and potential long-term growth in India. Deloitte-SAP launch Bengaluru hub, to add up to 500 AI specialists
• Positive Sentiment: SAP’s leadership has been highlighting India as a future AI frontrunner, which reinforces the company’s growth strategy around AI adoption and regional expansion. SAP CEO Christian Klein says India a future AI frontrunner
• Positive Sentiment: SAP continues to see customer and ecosystem integration activity, including a new Blue Mountain expansion that adds SAP connectivity to its compliance platform, which may support stickier enterprise software usage. Blue Mountain Expands RAM Connect Ecosystem with New Integrations for SAP, Veeva, Sware and ZenQMS
• Neutral Sentiment: SAP released security patches for critical vulnerabilities in NetWeaver and Commerce Cloud. While this is a necessary maintenance step, it is not a clear revenue driver and may mainly remind investors of ongoing cybersecurity risks. SAP fixes critical flaws in NetWeaver and Commerce Cloud
• Neutral Sentiment: SAP’s presentation at a Bank of America conference likely helped keep investor attention on the stock, but there was no major new financial update in the transcript itself. SAP SE presents at Bank of America Global Research C-Suite TMT Conference Transcript
• Negative Sentiment: Investors reacted negatively to Oracle’s aggressive AI spending plans, which dragged software shares lower and pressured SAP despite no major SAP-specific bad news. SAP shares retreat after Oracle unveils aggressive AI investment plans
• Negative Sentiment: Goldman Sachs reportedly lowered its gross margin forecast for SAP due to rising hardware costs, adding to margin pressure concerns for the stock. SAP falls as Goldman lowers gross margin forecast on rising hardware costs

Wall Street Analysts Forecast Growth

SAP has been the subject of a number of analyst reports. Barclays lifted their target price on shares of SAP from $256.00 to $257.00 and gave the stock an “overweight” rating in a report on Monday, April 27th. HSBC raised shares of SAP from a “hold” rating to a “buy” rating in a report on Wednesday, April 22nd. Santander raised shares of SAP from a “neutral” rating to an “outperform” rating in a report on Friday, April 24th. Wall Street Zen lowered shares of SAP from a “buy” rating to a “hold” rating in a report on Saturday, May 16th. Finally, Piper Sandler lowered shares of SAP from an “overweight” rating to a “neutral” rating in a report on Tuesday, April 14th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $283.40.

SAP Stock Down 3.8%

The company has a market cap of $201.20 billion, a price-to-earnings ratio of 22.11, a price-to-earnings-growth ratio of 2.00 and a beta of 1.12. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.11. The firm’s fifty day moving average price is $174.26 and its 200-day moving average price is $203.34.

SAP (NYSE:SAP) last announced its quarterly earnings results on Friday, February 27th. The software maker reported $1.99 earnings per share (EPS) for the quarter. SAP had a net margin of 20.08% and a return on equity of 17.31%. The company had revenue of $11.06 billion during the quarter. Sell-side analysts predict that SAP SE will post 8.39 earnings per share for the current year.

SAP Increases Dividend

The business also recently disclosed an annual dividend, which was paid on Friday, May 15th. Investors of record on Tuesday, May 5th were given a $2.9291 dividend. The ex-dividend date of this dividend was Tuesday, May 5th. This represents a yield of 170.0%. This is an increase from SAP’s previous annual dividend of $2.54. SAP’s payout ratio is presently 28.78%.

Institutional Investors Weigh In On SAP

Several institutional investors have recently added to or reduced their stakes in SAP. Dara Capital US Inc. bought a new stake in SAP during the 4th quarter worth about $3,342,000. Seaview Investment Managers LLC lifted its position in SAP by 191.4% during the 3rd quarter. Seaview Investment Managers LLC now owns 11,744 shares of the software maker’s stock worth $3,138,000 after buying an additional 7,714 shares in the last quarter. CIBC Bancorp USA Inc. bought a new stake in SAP during the 3rd quarter worth about $32,760,000. Dash Acquisitions Inc. lifted its position in SAP by 8.7% during the 4th quarter. Dash Acquisitions Inc. now owns 78,880 shares of the software maker’s stock worth $19,161,000 after buying an additional 6,315 shares in the last quarter. Finally, Cidel Asset Management Inc. lifted its position in SAP by 9.7% during the 3rd quarter. Cidel Asset Management Inc. now owns 139,273 shares of the software maker’s stock worth $37,215,000 after buying an additional 12,268 shares in the last quarter.

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.