22H·

SAP SE: Insider buying as a valuation and confidence signal

With the publication of the EQS announcement, it became known that Sebastian Steinhäuser (member of the Executive Board of $SAP (+0.64%) SE) has acquired shares in the company with a volume of around € 349 thousand at a price of approximately € 173.96. The purchase was made for his own account and was duly notified in accordance with Art. 19 MAR.


Classification from an investor's perspective:


Insider purchases at Executive Board level are particularly relevant if they are not

- are not driven by remuneration,

- have a substantial volume and

- take place in a phase of increased market uncertainty or relative share price weakness.


All three points are met here.


Implications:


- Information advantage: Management boards have detailed insights into operational development, pipeline, order situation and margin dynamics. A personal investment signals that the current share price level is perceived as attractive from an internal perspective.


- Valuation indicator: The purchase was not made near all-time highs, but after a phase of increased volatility. Historically, comparable transactions at SAP show that insider purchases often take place in valuation zones that were sustainable in the medium term.


- Signaling effect for the market: Even if insider purchases are not a timing instrument, they increase the probability that negative scenarios are already reflected in the share price.


- Alignment of interests: Management's capital commitment strengthens the alignment of interests with shareholders - particularly relevant for transformation stories (cloud, AI integration, margin expansion).


Conclusion:

Insider buying is not an isolated reason to buy, but represents a clear positive signal that should be considered in the context of fundamentals, growth prospects and valuation levels. For long-term investors, this can underpin the investment thesis.


Discussion:

How do you see insider buying at SAP? Is this a reason to buy (more) for you?

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2 Comments

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If I wanted to invest in SAP, it would have no relevance for me
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Didn't CEO Dominik Asam also invest?
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