The German tech giant is currently trading for EUR 146 per share and reached a market cap of EUR 170 Bln. The investors are extremely happy with the performance of the firm so far this year, as they earned a lot of money!
In the last days of October SAP was trading at EUR 121 a share and was struggling to break above the resistance zone around EUR 128. For the past one month however shares jumped with EUR 25! All the investors who bought in the company in early November returned roughly 20% profit in just 1 month and they are counting their profits now! The strong up trend is confirmed by the 20, 50, 100 and 200 day moving averages all pointing north. A very strong bullish signal is that the current price is above the shortest MA. Buyers are clearly in control here!
The huge interest in the company and this aggressive buying of their shares was driven by good financial data. The P/E is generally high, sitting at 37, but not too high for a tech stock. High PE is an indication that investors like the company and believe it will be performing even better in the future. SAP are extremely profitable. Their NET income is almost EUR 5 Bln out of EUR 31 Bln in sales. This comes to a comfortable 16% NET profit margin – no surprise the shares are in an UP tred!
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