Heavy Early Morning Activity On SAP SE (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 SE ( SAP) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified SAP SE 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 $61.6 million.
  • SAP traded 234,729 shares today in the pre-market hours as of 9:18 AM, representing 26.6% 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 2.5%. SAP has a PE ratio of 18.8. Currently there are 4 analysts that rate SAP SE a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for SAP SE has been 1.2 million shares per day over the past 30 days. SAP SE has a market cap of $84.0 billion and is part of the technology sector and computer software & services industry. Shares are down 18.7% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates SAP SE as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Although SAP's debt-to-equity ratio of 0.25 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for SAP SE is currently very high, coming in at 76.13%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.93% is above that of the industry average.
  • The revenue fell significantly faster than the industry average of 26.7%. Since the same quarter one year prior, revenues fell by 22.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Software industry and the overall market, SAP SE's return on equity exceeds that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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