Pre-Market Activity Shows Heavy Volume And Movement For Sap (SAP)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Sap ( SAP) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sap as such a stock due to the following factors:

  • SAP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.9 million.
  • SAP traded 78,800 shares today in the pre-market hours as of 8:54 AM, representing 12.8% of its average daily volume.

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More details on SAP:

SAP AG provides enterprise application software and software-related services worldwide. The stock currently has a dividend yield of 2.3%. SAP has a PE ratio of 20.6. Currently there are 5 analysts that rate Sap a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Sap has been 906,900 shares per day over the past 30 days. Sap has a market cap of $92.1 billion and is part of the technology sector and computer software & services industry. Shares are down 10.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sap as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • SAP's revenue growth has slightly outpaced the industry average of 7.5%. Since the same quarter one year prior, revenues rose by 10.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SAP's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.14, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, SAP AG's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $3,240.35 million or 16.94% when compared to the same quarter last year. In addition, SAP AG has also modestly surpassed the industry average cash flow growth rate of 10.44%.

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