Software AG: What do you think about the dividend?
The ratio between the dividend and the current share price is usually stated as the dividend yield. The value can be subject to daily fluctuations and is therefore a dynamically changing indicator. With a yield of 2.52 percent, Software AG is currently only slightly above the industry average. The “Software” branch has a value of 1.75, resulting in a difference of +0.77 percent to Software AG stock. Based on this result, the editors give the stock a “hold” rating for its dividend policy.
Software AG cannot keep up with the market
The share’s return is -18.21 percent in the past year. Compared to stocks from the same sector (“information technology”), Software AG is 44.24 percent below the average (26.03 percent). The average annual return for securities from the same “software” branch is 26.09 percent. Software AG is currently 44.3 percent below this value. Due to the underperformance, we rate the stock at this level as an overall “sell”.
Investors are in good spirits
Investor sentiment is an important sentiment indicator for valuing a stock. Lately, Software AG stock has also been the focus of discussion on social media. Most of the opinions published were positive. In addition, the public opinion market has been particularly preoccupied with the positive topics surrounding Software AG in the past few days. This circumstance triggers an overall “buy” rating. On the analytical side, further investigations and studies of the communicative activities show that especially “sales” signals were given. There were four signals (3 sell, 1 buy). The bottom line is that there is generally a “sell” signal at this level. In summary, the analysis of investor sentiment results in an overall “buy” rating.
Should investors sell immediately? Or is it worth becoming a member of Software AG?
Software AG fundamentally undervalued
The lower a stock’s price-to-earnings (P/E) ratio, the cheaper it appears at first glance. Growth stocks tend to have higher P/E ratios. With a value of 24.33, Software AG is below the industry average. The exact spread is currently 63 percent with an average price-earnings ratio for the software industry of 65.23. Due to the relatively low price-earnings, the share can be described as “cheap” and therefore gets a “buy” based on fundamental criteria.
The chart in technical analysis
Trend-following indicators are intended to show whether a security is currently in an up or down trend (see Wikipedia). The moving average is one such indicator, we look at the 50 and 200 day moving averages here. First, let’s take a look at the long-term average over the last 200 trading days. This is currently EUR 32.69 for Software AG shares. The last closing price (EUR 28.3) is therefore significantly lower (-13.43 percent deviation in comparison). On this basis, Software AG receives a “sell” rating. Now looking at the shorter-term 50-day moving average for this (EUR 30.25), the last close is also below the moving average (-6.45 percent deviation). Software AG shares are therefore also given a “sell” rating on this short-term basis. Overall, Software AG is given a “Sell” rating based on trending indicators.
Current course analysis based on RSI
Based on the Relative Strength Index, Software AG stock is a team stock. The index measures up and down movements over different periods (RSI7 for seven days, RSI25 for 25 days) and assigns them a number between 0 and 100. Software AG stock has an RSI7 of 33.95, resulting in a “Hold”- rating, and an RSI25 of 61.4, which has a “Hold” rating for the period conditional. This results in the overall ranking “Hold” at the level of the relative strength indicator.
Buy, hold or sell Software AG?
How will Software AG evolve now? Is an entry worth it, or should investors rather sell? Find out the answers to these questions and why you should act now in the current Software AG analysis.