SAP Shares Soar 4.76% to Record High on Buyback, Analysts' Backing

SAP's share price surged to a record high today, with an intraday gain of 4.76%.

The backtest results for sap (SAP SE) stock price reaching a new high show a generally negative performance in the short term. Over the next 3 days, the win rate is 49.72%, with a slight return of -0.35%. The 10-day win rate is 51.82%, with a return of -0.95%, and the 30-day win rate is 48.83%, with a return of -2.49%. The maximum return during the backtested period was -0.08%, which occurred on day 30, indicating that the stock price tended to decline in the aftermath of reaching a new high.

SAP's recent stock price surge can be attributed to several key factors. The company's completion of a €3,100 million share buyback program has significantly boosted investor confidence. Share buybacks are often seen as a positive signal, indicating that the company believes its stock is undervalued and that it has sufficient cash flow to invest in its own shares. This move has historically led to an increase in share price, as seen in the 7% rise following the announcement.

Additionally, positive analyst recommendations have contributed to the stock's appreciation. Jefferies analyst Charles Brennan maintained a Buy rating for sap se and increased the price target to €300.00. Such endorsements from reputable analysts can drive investor interest and lead to increased buying activity, further propelling the stock price upward.

Ask Aime: Can I invest in SAP stock after it surges?