1. SAP SE (NYSE:SAP)
52 Week Range: $126.75 – $221.24
Current Share Price: $218.78
Short interest rate: 0.15%
Number of Hedge Fund Holders: 31
SAP SE (NYSE:SAP) is a technology company that provides worldwide applications, technology, and services. It offers software capabilities for finance, risk and project management, procurement, manufacturing, supply chain, and asset management.
The company has been firing on all cylinders following the solid second-quarter results. Revenues were up by 10% to $9.19 billion, driven by a 10% increase in cloud revenue. The Cloud ERP Suite played a pivotal role, recording a 33% rise to $3.78 billion. The company’s cloud backlog, which represents contractually committed cloud revenue, increased 28% to $16.42.
The company’s cloud growth momentum remains strong and is driven by business intelligence. The company also raised its forecast for its 2025 adjusted operating profit to 10.2 billion euros, up from the previous 10 billion euros, due to expected improvements in efficiency from its transformation initiative.
In addition to the solid financial results, SAP SE (NYSE:SAP) sentiments in the market have been boosted after the company embarked on a restructuring drive to bolster margins. It announced plans to restructure 8,000 jobs early in the year as it pushes into AI.
With the restructuring, SAP SE (NYSE:SAP) has been increasing its focus on retaining strategic growth areas, particularly Business AI, and its efforts are already paying off. While the stock is trading close to its 52-week highs, it rewards investors with a 1.10% dividend yield, offering another opportunity for generating some passive income.
As of the end of the second quarter of 2024, 31 hedge funds tracked by Insider Monkey had stakes in SAP SE (NYSE:SAP). During this period, the most significant stakeholder of SAP SE (NYSE:SAP) was Ken Fisher, who had a $974.36 million stake in SAP SE (NYSE:SAP).
Ave Maria World Equity Fund stated the following regarding SAP SE (NYSE:SAP) in its first quarter 2024 investor letter:
“SAP SE (NYSE:SAP) provides enterprise application software products worldwide. SAP is successfully transitioning from a perpetual license model to a SAAS model, which we believe will lead to an increase in TAM (total addressable market), higher margins and lower capital intensity.”
The best 52-week high stocks to buy now according to short sellers, are companies that have risen significantly owing to solid underlying fundamentals. However, given that the artificial intelligence arms race is just but starting, there are under-the-radar AI stocks trading at highly discounted valuations that hold greater promise for anyone looking to diversify their portfolio. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
