Trade Now

Capital at risk Advertisement
Share Name Share Symbol Market Type Share ISIN Share Description
Sage Group Plc LSE:SGE London Ordinary Share GB00B8C3BL03 ORD 1 4/77P
  Price Change % Change Share Price Shares Traded Last Trade
  0.80 0.11% 742.00 5,239,901 16:35:14
Bid Price Offer Price High Price Low Price Open Price
741.00 741.40 746.40 735.60 736.40
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 1,846.00 347.00 26.33 28.2 7,553
Last Trade Time Trade Type Trade Size Trade Price Currency
18:08:46 O 422 745.147 GBX

Sage (SGE) Latest News

More Sage News
Sage Investors    Sage Takeover Rumours

Sage (SGE) Discussions and Chat

Sage Forums and Chat

Date Time Title Posts
02/8/202209:24CAN SAGE make it to 225p - a superb stock3,828
10/5/201321:05SAGE: CHARTS, NEWS ETC.16
14/4/200415:04100p -- Only debate now is when680
17/12/200311:28SAGE SELL!SELL!! TARGET PRICE 120P12

Add a New Thread

Sage (SGE) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2022-08-19 16:28:37741.581,68112,465.98O
2022-08-19 16:27:04744.0017.44O
2022-08-19 16:25:33741.524,81835,726.24O
2022-08-19 16:23:49740.633732,762.53O
2022-08-19 16:22:58741.02429.64O
View all Sage trades in real-time

Sage (SGE) Top Chat Posts

Sage Daily Update: Sage Group Plc is listed in the Software & Computer Services sector of the London Stock Exchange with ticker SGE. The last closing price for Sage was 741.20p.
Sage Group Plc has a 4 week average price of 676p and a 12 week average price of 587.20p.
The 1 year high share price is 862.20p while the 1 year low share price is currently 587.20p.
There are currently 1,017,932,561 shares in issue and the average daily traded volume is 1,255,169 shares. The market capitalisation of Sage Group Plc is £7,553,059,602.62.
maddox: The change in economic backdrop - inflation and interest rate rise impact. These changes cause a reappraisal of individual stocks as well as a devaluation of the market as a whole. It takes a while for this to take its course but eventually some stocks will be displaced to become laggards and new leaders will take their place. Sage is well placed to become a leader. Essentially Tech but selling a non-discretionary product with an economic moat and thus pricing power. These are attractive characteristics for a tougher trading environment. If SGE can bring the underlying growth through, from beneath the legacy drag, then this could bring new investors on board. Once the market turns there will be a lot of cash looking for a new home.
maddox: Results 1H22 - Strong underlying performance, as always, masked by the transformation, planned wind-down of services revenue and disposals (removing revenue). The tone is increasingly confident with a rebranding and relaunch of the Sage Brand. So, looking through the statutory numbers to underlying performance the highlights are: >> Organic Revenue up 5% >> Organic Recurring Revenue up 8% (Annualised Recurring Revenue(ARR) up 10%) >> Subscription penetration 74% (68%) >> Business Cloud penetration 72% (65%) >> Renewal by value 100% (97%) >> Underlying cash conversion 120% >> Underlying Op Margin 19.6 (20.4%) The Op Margin reflects increased marketing spend and product development with the guidance that it will widen again in H2. The key positives are the new customer acquisition (+£150m of ARR) driven by the Cloud Native products up 43% (ARR). Of this new customers comprised 75% and re-activations of 25% with Intacct again the star product delivering +31% recurring revenue in the competitive North American Market. They have finally completed the disposal programme and the declining legacy services revenue is becoming less significant - so the optics should start to improve. Clearly, the global economic outlook isn't looking good but the trend to digitisation and Sage's resilience suggests they will continue to progress. The re-instatement of the progressive dividend policy should help support the share price.
topvest: Sage appear to be losing the battle with Intuit (owns Quickbooks). Just an observation, but Intuit is now worth c10x Sage even after its share price taking a pounding in the last few months. Quickbooks appear to be spending a great deal more on advertising their product. Any thoughts?
maddox: Taking the 31 Dec close 852.6p and a twelve month view (582p) we have seen a 270.6p share price rise or 46.49%. Add-in the 17.37p of dividends received in the period and that makes for a 49.47% total return. Then on 13 Jan we will qualify for the 11.63p dividend - paid 10 Feb. So a very good performance but what of the future? Sage's SaaS transformation has yet to deliver. When it does we should see strong organic growth and widening margins. That's a heady mix that will justify a higher rating - but on better fundamentals than we have currently - so Sage is a solid hold for me. But price targets ain't my thing. Wishing all holders a Happy and prosperous New Year! Maddox
nhb001: Happy new year everyone. I was wondering what people's targets are for SGE. Paul Hill (a professional investor who posts on LinkedIn & Twitter) who was invested in SGE has recently sold since it hit his target at £8.20. I find timing sells harder than timing buys (not uncommon I think) so I was curious what others views are on SGE. My current view is to let this run as the market seems to be rerating it now. Also, see Maddox's comments about broker targets being less than the current price. Also, as someone whose career was in software (including IBM) I have long wondered if the market really understands (yet) the possible benefits of a company moving to SaaS delivery. As well as the cost savings for vendors and consumers (less O/S & DB flavours to test & support, less installation and maintenance costs for consumers) there are also the more ephemeral advantages of access to customer data on the SaaS platform itself and the possibilities to monetise this with analytics & AI by the vendor. Am I being too optimistic? Best wishes.
maddox: Yes, Sage is showing some remarkable strength against a 'risk-off' market backdrop. Managed to hit a 52 week high on Friday 24th Dec (851.08p). Only two Brokers out of 21 have share price targets above the current share price Jefferies on 900p and Numis on 870p. It also appears to have risen sharply with the share volume traded decreasing over the latter few days. I'm no Charting expert but to my amateur eye that looks like a very bullish signal - but I'll defer to those better informed on this? Perhaps the buy-back programme is now finding holders reluctant to part with their shares?
maddox: Thought I’d have a look at the Brokers Analysts recommendations which are fairly evenly balanced on Sage: Strong Buy........5...(2) Buy...............1...(0) Neutral...........8...(8) Sell..............3...(2) Strong Sell.......4...(7) Brackets are the scores as at Jan 2020. .................21..(19) Source: Their views have improved on a year ago but still somewhat cautious: share price targets are all under the current share price, with the sole exception of Jefferies on 900p. So, I think Sage IR have a bit more work to do to get their transformation story across. Regards, Maddox
nhb001: The real price action in SGE seemed to start immediately after the MPC decided to hold rates at midday yesterday. This may have caused financial institutions to recalibrate their DCF valuation formulas and that advantaged SGE perhaps? I am looking for confirmation of continuing strength in small & medium sized companies for digitisation and movement to cloud. The SGE management seem ultra cautious so some optimism would count for a lot.
maddox: I listened to the Fundsmith AGM and whilst obviously disappointed by the share price performance their discussion of the pluses and minuses was inconclusive. They tend not to run away at the first signs of a problem; and to back managers that are doing the right thing. In fact, Terry Smith is very opportunistic and will often buy a 'quality' company when the share price is depressed due to a short-term difficulty. I think that due to the repeated AGM questions about SGE Terry decided to exit in the opportune circumstance of the buy-back programme. A rare example of Terry playing to the gallery. FWIW I think he should have bought more SGE and that he'll regret it. And as a Fundsmith investor I might be penning a question for the AGM. [I do very much admire Terry Smith - I have a signed fist addition of his book 'Accounting for Growth' ('the book they tried to ban') and Fundsmith is my only fund investment.]
maddox: Whether buy-backs really make sense for shareholders depends on two critical points, specifically: aa> The shares repurchased must be trading at a price below their intrinsic value; AND, bb> There is no better internal use of the cash that would generate a higher return. A very timely analysis just appeared on Yahoo Finance by Simply Wall Street: htTPs:// They've produced a DCF valuation of SGE. Based on their combining of broker forecasts and their own future projections they calculate the current fair value share price of SGE to be 731p - so a 21.3% premium to today's close of 587.8p. This suggests that yes, the buy backs are being purchased at below intrinsic value. But there is still the second test: Is there better internal use of the cash? The rationale for this second question is that in handing back the cash to shareholders they will then need to find a new investment. In making a new investment an external investor will almost certainly be buying in at a premium whereas a firm's internally recycled cash is invested at par value. So it makes better sense to re-invest it rather than return it. SGE has already been making additional investments in its products, its cloud infrastructure and its marketing; also it doesn't appear to need any further bolt-on acquisitions to round-out its product set. Quite the reverse, it has been divesting its geographic implementation capability as it moves towards a local partner model. It has also sold-off its non-core activities such as payment acquiring (SagePay). SGE therefore does appear to have surplus cash that the best use of which is to buy back its own shares that are trading below current intrinsic value. There is of course a potential kicker here, if that current intrinsic value calc doesn't reflect the improving prospects from SGE's transformation. The current buy-back programme might also signal that SGE's transformation investment cycle is at an end and management are now looking towards future organic growth returning, which is not reflected in the current share price. So, what are your thoughts? Regards Maddox
Sage share price data is direct from the London Stock Exchange
ADVFN Advertorial
Your Recent History
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

Log in to ADVFN
Register Now

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20220820 00:01:11