SAP SE (NYSE:SAP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Monday.

According to Zacks, “SAP’s second-quarter 2017 IFRS earnings per share of €0.56 missed the Zacks Consensus Estimate and declined 17.7% from the year-ago figure. An increase in the share-based compensation expenses and restructuring expenses proved to be a drag on the bottom line. Rise in operational expenses remains a concern. Moreover, intensifying competition in the IT services industry, sluggish global economy and currency fluctuations are affecting profits. Moreover, inherent seasonality in clients’ technology spending exposes the company’s sales to risks of quarterly fluctuations. Weaknesses in key end markets add to the woes. Over the past three months, SAP’s shares have underperformed the Zacks categorized Computer-Software industry average. On the flip side, SAP’s resilient Cloud and Software business, an enviable business network spread and dominance over critical client demand areas continue to drive top-line growth.”

Several other research firms also recently weighed in on SAP. Stifel Nicolaus downgraded SAP SE from a “hold” rating to a “sell” rating and set a $102.13 price target for the company. in a research note on Wednesday, April 26th. Royal Bank Of Canada reiterated a “neutral” rating on shares of SAP SE in a research note on Thursday, April 13th. BMO Capital Markets increased their price target on SAP SE from $105.00 to $110.00 and gave the stock a “market perform” rating in a research note on Friday. William Blair reiterated a “market perform” rating on shares of SAP SE in a research note on Friday, April 14th. Finally, DZ Bank AG reiterated a “buy” rating on shares of SAP SE in a research note on Thursday. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and twelve have issued a buy rating to the stock. The company currently has an average rating of “Buy” and a consensus price target of $95.69.

SAP SE (NYSE SAP) traded down 0.62% during midday trading on Monday, hitting $103.63. The stock had a trading volume of 1,209,305 shares. The stock has a market cap of $124.25 billion, a P/E ratio of 31.47 and a beta of 1.12. SAP SE has a 52 week low of $80.93 and a 52 week high of $108.72. The company has a 50-day moving average price of $105.53 and a 200-day moving average price of $98.64.

SAP SE announced that its board has authorized a stock repurchase plan on Thursday, July 20th that allows the company to repurchase outstanding shares. This repurchase authorization allows the software maker to reacquire shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

COPYRIGHT VIOLATION WARNING: “SAP SE (SAP) Rating Lowered to Sell at Zacks Investment Research” was reported by American Banking News and is the property of of American Banking News. If you are viewing this report on another site, it was illegally stolen and republished in violation of US and international copyright & trademark laws. The legal version of this report can be viewed at https://www.americanbankingnews.com/2017/07/24/sap-se-sap-rating-lowered-to-sell-at-zacks-investment-research.html.

Several hedge funds have recently added to or reduced their stakes in the stock. Lazard Asset Management LLC acquired a new stake in SAP SE during the third quarter valued at $19,082,000. PNC Financial Services Group Inc. boosted its stake in SAP SE by 130.2% in the fourth quarter. PNC Financial Services Group Inc. now owns 150,129 shares of the software maker’s stock valued at $11,875,000 after buying an additional 84,924 shares during the last quarter. Bank of America Corp DE boosted its stake in SAP SE by 37.3% in the first quarter. Bank of America Corp DE now owns 2,565,236 shares of the software maker’s stock valued at $251,830,000 after buying an additional 696,447 shares during the last quarter. Howard Capital Management boosted its stake in SAP SE by 3.0% in the third quarter. Howard Capital Management now owns 119,376 shares of the software maker’s stock valued at $10,912,000 after buying an additional 3,515 shares during the last quarter. Finally, Sei Investments Co. boosted its stake in SAP SE by 23.9% in the third quarter. Sei Investments Co. now owns 81,908 shares of the software maker’s stock valued at $7,487,000 after buying an additional 15,820 shares during the last quarter. 3.75% of the stock is currently owned by hedge funds and other institutional investors.

About SAP SE

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).

Get a free copy of the Zacks research report on SAP SE (SAP)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for SAP SE (NYSE:SAP)

Receive News & Ratings for SAP SE Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SAP SE and related companies with MarketBeat.com's FREE daily email newsletter.