SAP (NYSE:SAP) Shares Gap Down After Earnings Miss

SAP SE (NYSE:SAP - Get Free Report) shares gapped down before the market opened 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 changing hands.

The software maker reported $1.49 earnings per share (EPS) 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 Upgrades and Downgrades

Several analysts recently weighed in on the company. Barclays raised their price objective on SAP from $275.00 to $283.00 and gave the company an "overweight" rating in a research note on Thursday, January 23rd. TD Cowen raised shares of SAP from a "hold" rating to a "buy" rating and lifted their price target for the company from $240.00 to $305.00 in a report on Friday, January 17th. Kepler Capital Markets raised shares of SAP from a "hold" rating to a "buy" rating in a research note on Wednesday, January 15th. JMP Securities increased their price target on SAP from $245.00 to $300.00 and gave the company a "market outperform" rating in a research note on Tuesday, October 22nd. Finally, BMO Capital Markets boosted 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. Ten investment analysts have rated the stock with a buy rating, According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average price target of $276.00.

Institutional Investors Weigh In On SAP

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. FMR LLC boosted its holdings in SAP by 22.3% during the 3rd quarter. FMR LLC now owns 10,246,279 shares of the software maker's stock valued at $2,347,422,000 after acquiring an additional 1,866,468 shares during the period. WCM Investment Management LLC purchased a new stake in shares of SAP during the 4th quarter worth $290,023,000. Jennison Associates LLC purchased a new stake in SAP during the fourth quarter valued at approximately $47,195,000. International Assets Investment Management LLC purchased a new position in SAP during the 3rd quarter worth $40,573,000. Finally, Connor Clark & Lunn Investment Management Ltd. raised its position in shares of SAP by 644.9% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 164,330 shares of the software maker's stock valued at $37,648,000 after purchasing an additional 142,270 shares during the last quarter.

SAP Stock Down 0.8 %

The firm has a market capitalization of $335.99 billion, a price-to-earnings ratio of 109.40, a P/E/G ratio of 3.89 and a beta of 1.22. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 0.17. The company'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.