Introduction
On April 24, 2025, SAP SE launched the fourth tranche of its share buyback program, this time with a volume of up to 1.4 billion euros. This measure will run until no later than December 19, 2025, and will be implemented through Xetra trading on the Frankfurt Stock Exchange.
Program Details
- Volume: The current tranche encompasses up to 1.4 billion euros and is part of a larger program of up to 5 billion euros.
- Period: The purchase of shares is planned until a maximum of December 19, 2025.
- Trading Venue: The buybacks will take place via Xetra in Frankfurt.
Impact on Capital Structure
With a share price of 241.70 euros, the buyback volume corresponds to approximately 5.79 million shares or about 0.47% of the share capital. The purpose of such buybacks is often to support the share price or reduce the number of outstanding shares, which can increase earnings per share (EPS).
Relevance for Investors
- Price Support: The company’s demand can have a price-stabilizing effect in the short term.
- Protection Against Capital Dilution: A reduced number of outstanding shares improves metrics like return on equity.
- Signaling Effect: The buyback program indicates the management’s confidence in the company’s value.
However, it is important to note that the exact execution depends on market conditions, and SAP reserves the right to adjust the program at any time.