Insider Buying

Two Insiders at SAP Just Bought Stock

SAP SE
(SAP:GR)
12 months:
-13.55%
Activity:
Bullish
Pattern:
Purchases from two insiders
News:
Q3 results
SAP SE
(SAP:GR)
12 months:
-13.55%
Activity:
Bullish
Pattern:
Purchases from two insiders
News:
Q3 results
The image background depicts Female engineer develops product designs with colleague, with the blog introduction mentioned the insider's investment of $200K on top.

Corporate insiders know more about their businesses than anyone else. If these individuals are buying company stock, it’s often worth taking a closer look. 

In this insider buying report, we are going to highlight some interesting insider buying at SAP SE (SAP:GR). SAP is a multinational software company that develops enterprise software to manage business operations and customer relations. It is the largest European software business by revenue. The company is listed on Deutsche Börse’s Xetra and currently has a market capitalization of approximately €125.77 billion.

Insider Buying at SAP

Our data shows that in late November, two insiders at SAP participated in legal insider trading activity. On November 23, Executive board member Julia White purchased 1,028 ADRs at a price of $109.58 per share. Then, on November 30, Executive board member Scott Russell purchased 834 ADRs at a price of $107.66 per share. Combined, the insiders spent just over $200,000 on stock. 

Industry Experience 

Both Mr. Russell and Ms. White are top-tier insiders that have substantial experience in the technology industry. 

Mr. Russell joined SAP in 2010 and currently leads Customer Success, SAP’s global sales, services, partner, and customer engagement organization. Prior to joining SAP, he was a Partner at PwC and a senior executive at IBM. 

Ms. White joined SAP in 2021 and is currently Chief Marketing and Solutions Officer. In this role, she leads the product and industry solution value propositions, global brand and digital marketing, corporate communications, and government affairs. Previously, she spent nearly 20 years at Microsoft. 

Given their backgrounds, these insiders are likely to have a good understanding of SAP’s prospects. 

Cloud Momentum 

SAP currently has a lot of momentum in its cloud division. 

For Q3, cloud revenue was €3,288 million, up 38%, or 25% at constant currency. This pushed overall revenues up 15% with recurring revenue rising to 80% from 77% a year earlier. 

At the end of the quarter, the cloud backlog was €11,267, up 38%, or 26% at constant currency.

Looking ahead, management was confident that the cloud division will continue to drive growth. 

“We have delivered a strong cloud quarter with accelerating momentum across all key cloud indicators. We’re at an important inflection point in our transformation which we anticipate will lead to accelerating revenue growth and double-digit operating profit growth in 2023,” said CFO Luka Mucic. 

“Our cloud solutions are the answer, as customers turn to us to help them future-proof their businesses. This trust in SAP is reflected in our accelerating cloud momentum. With a recurring revenue share of more than 80%, it’s clear that our transformation has reached an important inflection point, paving the way for continued growth in the future,” added CEO Christian Klein.

In light of the success the company is having with the cloud right now, we see the insider buying here as a bullish indicator.

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