Is Sage stock a buy right now?
As of early May 2025, Sage Group plc (LSE: SGE) is trading at approximately 1,275.50p per share, with an average daily trading volume of around 2.93 million shares. The recent announcement of an expanded share buyback programme (£400 million) and a sustained dividend increase underscores Sage’s robust cash generation and commitment to shareholder returns. Meanwhile, the launch of the Sage Copilot—a generative AI assistant—and continued investments in cloud-native solutions have further consolidated Sage’s position as a technology leader in small and mid-sized business (SMB) financial software. While short-term technical indicators are mixed, longer-term fundamentals remain highly constructive, as evidenced by strong FY2024 results: underlying revenues rose 9%, and free cash flow jumped 30% year-on-year. Market sentiment in the UK technology sector is notably resilient, recognising Sage’s disciplined cloud transformation and strategic innovation despite sector-wide volatility. Against this backdrop, the consensus target price from over 32 leading national and international banks is 1,658p, reflecting clear confidence in Sage’s growth trajectory and execution. In the context of the broader software sector's ongoing cloud adoption, Sage’s stability and strategic discipline position it as a compelling consideration for retail investors seeking exposure to digital transformation.
- Recurring revenue model: 82% of revenues are subscription-based, ensuring visibility and resilience.
- Consistent double-digit growth in cloud and software revenues, year after year.
- Strong free cash flow generation and disciplined capital allocation, supporting share buybacks and dividends.
- Innovative leadership with new AI-powered products like Sage Copilot accelerating digital transition.
- Excellent cash conversion rate (123%) underpins investment capacity and financial stability.
- Premium valuation (P/E over 40) may limit near-term upside if expectations moderate.
- Fragmented competitive landscape restricts pricing power, especially among small business customers.
- What is Sage?
- How much is Sage stock?
- Our full analysis on Sage </b>stock
- How to buy Sage stock in United Kingdom?
- Our 7 tips for buying Sage stock
- The latest news about Sage
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring the performance of Sage for over three years. Every month, hundreds of thousands of users across the United Kingdom rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and should not be regarded as investment advice. In line with our ethical charter, we have never been, and will never be, paid by Sage.
What is Sage?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | UK-based firm with global operations, giving access to local and international markets. |
| 💼 Market | London Stock Exchange | Listed on LSE, offering transparency and liquidity for retail investors. |
| 🏛️ ISIN code | GB00B8C3BL03 | Unique identifier for Sage shares, ensuring easy trading and compliance. |
| 👤 CEO | Steve Hare | CEO since 2018; drives the cloud and digital transformation strategy. |
| 🏢 Market cap | £12.39 billion | Large-cap size reflects Sage's strong position in global business software. |
| 📈 Revenue | £2,332 million (FY2024) | Revenue grew +9% YoY, driven by robust cloud and subscription segment performance. |
| 💹 EBITDA | £622 million (FY2024) | EBITDA up 16%; reflects improving operational efficiency and profitability. |
| 📊 P/E Ratio (Price/Earnings) | 40.46 | High P/E signals a premium valuation; market expects continued growth and innovation. |
How much is Sage stock?
The price of Sage stock is rising this week. As of now, Sage Group shares are trading at 1,275.50p with a 24-hour gain of 30.50p (+2.45%), though over the last seven days the stock is down 6.51%. The company’s market capitalisation stands at £12.39 billion, with a three-month average daily volume of 2.93 million shares. Sage’s P/E Ratio is 40.46, offering a dividend yield of 1.64%, and the stock’s beta is a stable 0.42. Investors will want to note the recent positive momentum and low volatility in Sage’s share price, which could present compelling opportunities in the current UK market.
| Metric | Value |
|---|---|
| Current Price | 1,275.50p |
| 24-hour Gain | 30.50p (+2.45%) |
| 7-day Change | -6.51% |
| Market Capitalisation | £12.39 billion |
| 3-Month Average Daily Volume | 2.93 million shares |
| P/E Ratio | 40.46 |
| Dividend Yield | 1.64% |
| Beta | 0.42 |
Our full analysis on Sage stock
We have thoroughly reviewed Sage Group plc’s most recent financial results, as well as the share price performance across the last three years. Combining in-depth analysis of financial statements, technical price signals, market trends, and competitive positioning—powered by our proprietary algorithms—we have identified a compelling case for renewed attention to Sage. So, why might Sage stock once again become a strategic entry point into the fast-evolving cloud software sector in 2025?
Recent Performance and Market Context
Sage shares have delivered a solid performance over the last twelve months, with the stock currently trading at 1,275.50p, up 7.8% year-on-year and approaching the upper end of its 52-week range (954.2p–1,349p). This momentum comes despite a modest pullback in recent weeks, with short-term weakness (-6.5% over one week, -7.3% over one month) largely reflecting sector-wide volatility as investors digest macroeconomic data and tech sector rebalancing.
Several positive events have underpinned Sage’s medium-term resilience:
- FY2024 results exceeded market expectations, with revenues, profits, and free cash flow all showing double-digit growth.
- A major share buyback program (£400 million) was announced, signalling substantial management confidence.
- Dividend growth (+6% YoY) continues to reward long-term shareholders amid robust cash generation.
- AI-powered Sage Copilot is gaining early traction and broadening the company’s differentiated offering.
The UK technology sector has benefited from a renewed global focus on digital migration, with small and mid-sized businesses accelerating cloud adoption despite economic headwinds. Sage’s exposure to essential software for this segment appears particularly well-suited for capturing incremental growth as sentiment toward the cyclical tech space turns positive again, fuelled by AI and cloud platform innovation.
Technical Analysis
From a technical perspective, Sage’s share price structure appears constructive, having weathered the recent pullback while maintaining key support:
- Current price (1,275.50p) stands comfortably above all major moving averages (20, 50, 100, and 200 days), which often signals a healthy longer-term uptrend.
- The 20-day EMA (1,195.77p) and 200-day SMA (1,151.30p) provide robust support—the stock remains above these benchmarks, suggestive of resilient demand.
- RSI at 62.63 is neutral and far from overbought extremes, leaving room for renewed upward movement.
- Momentum (ROC at 13.03) remains firmly positive.
- While MACD and CCI are flashing short-term caution (potentially overbought readings), these often resolve via sideways consolidation in strong, structurally bullish stocks.
Key technical levels:
- Support: 1,225.50p and 1,213.50p.
- Resistance: 1,243.50p and 1,261.50p.
Importantly, Sage’s technical picture reinforces a positive medium-term bias, especially for participants seeking to capitalise on periodic reversals from strong support zones. The current pattern sets up a favourable risk-reward dynamic, with limited downside to support and clear upside targets should positive catalysts materialise.
Fundamental Analysis
Sage’s fundamentals have rarely looked stronger, as reflected in its FY2024 performance:
- Underlying revenue growth (+9% YoY) and operating profit up 21%.
- Sector-leading operating margins (22.7%), with margin expansion of +2.2 percentage points YoY.
- Growth in cloud-native SaaS revenue (+23% YoY), accelerating the strategic transition away from legacy software.
- Annualised recurring revenue (ARR) of £2.34 billion and cloud penetration at a record 82%, underpinning high visibility and stability.
- Robust free cash flow (£524 million) and cash conversion (123%), giving management ample flexibility to invest, return capital, and weather economic variances.
Valuation metrics require careful consideration: Sage trades at a premium P/E of 40.5, versus sector peers whose multiples often reflect lagging growth or lower cloud/SaaS exposure. However, the PEG ratio is trending towards a forward-aligned premium justified by Sage’s high recurring revenue base, secular cloud adoption tailwind, and consistent double-digit profit growth.
Structurally, Sage continues to punch above its weight:
- Brand recognition in the SMB segment is a formidable economic moat.
- Ongoing investments in Sage Copilot (AI) and the Sage Network are already resonating with clients eager for automation and data-driven insights.
- Geographical diversification and a scalable suite provide insulation against regional macro pressures and facilitate expansion opportunities.
In sum, the fundamental outlook strongly supports a bullish stance. The valuation, though elevated by legacy standards, appears appropriate for a high-quality compounder in the midst of a major technological transition.
Volume and Liquidity
Sage attracts robust market participation: average daily trading volumes of 2.93 million shares provide ample liquidity for both institutional and private investors. This consistent activity reflects high confidence and enables dynamic price discovery—key for a stock undergoing sector re-rating.
The free float is well-distributed, ensuring that valuation remains a function of real-time demand rather than large, illiquid holdings. Recent strong trading volumes, particularly during earnings releases and capital return announcements, underscore the market’s attentiveness to Sage’s newsflow and strategic direction.
Catalysts and Positive Outlook
Several forward-looking catalysts suggest Sage is well-placed for renewed outperformance:
- The full rollout of Sage Copilot (AI-powered assistant): now live with initial customers, with potential for broad deployment across the global installed base, providing both pricing power and cross-sell opportunities.
- Expansion of cloud-native solutions: increased subscription penetration supports more stable, higher-margin revenues.
- The £400 million share buyback programme will lift EPS and underscores management’s commitment to capital discipline while delivering direct shareholder value.
- Dividend per share growth (+6% in 2024): demonstrates both confidence and capacity for future payouts.
- Strong M&A platform: management’s balance sheet flexibility allows tactical acquisitions to bolster capability and market share.
- Favourable industry context: as regulatory and compliance demands rise, SMBs are compelled to invest in cloud-based accounting and HR platforms—tailwinds largely insulated from consumer cycles.
- ESG momentum: Sage’s sustainability commitments and social initiatives align with institutional investor mandates, broadening the potential pool of long-term holders.
All told, the combination of these growth drivers and robust execution should create a fertile environment for further multiple expansion and capital appreciation.
Investment Strategies
The current technical set-up and business momentum offer attractive entry opportunities for different investment horizons:
- Short-term: The stock has recently retested key support near 1,225–1,250p, which could serve as an ideal springboard for tactical traders seeking a rebound. Near-term newsflow around AI adoption or buyback execution may provide volatility to exploit.
- Medium-term: As Sage consolidates above all major moving averages and with upcoming catalysts on the horizon (notably further Sage Copilot features in H2 2025), medium-term investors may target sustained upside through the next results cycle and capital returns.
- Long-term: For those seeking exposure to the digital transformation of UK and global SMBs, Sage’s recurring revenue, expanding margins, and leading position in the cloud accounting space present a quality compounding story. Entry on recent weakness, ahead of the next wave of strategic product rollouts and with sector tailwinds intact, appears well-timed.
In all cases, the share price’s solid support profile and the momentum of value-adding catalysts create a favourable risk-reward context for new or additional positioning.
Is It the Right Time to Buy Sage?
On balance, Sage Group’s financial strength, relentless execution of its cloud-first strategy, and a highly shareholder-friendly approach (via dividends and buybacks) combine to make a persuasive case for renewed interest at present levels. The fundamentals justify optimism: robust ARR, exceptional cash generation, and increasing profitability set it apart in the application software space. Technicals provide an encouraging backdrop, with strong support levels, sustained volumes, and a pattern of upward resilience. Moreover, the positive backdrop of AI innovation, regulatory-driven demand, and supportive sector dynamics all suggest Sage may be entering a new bullish phase.
For investors seeking exposure to the next generation of cloud software leaders—with the security of a proven brand and the upside of ongoing transformation—Sage seems to represent an excellent opportunity for consideration. The convergence of fundamental strength, technical potential, and clear growth catalysts underscores the stock’s appeal as a strategic pick within the UK technology sector for 2025 and beyond.
In summary, Sage stands out as a highly resilient, innovation-driven software leader whose current positioning and outlook inspire confidence in its ability to generate value for shareholders as the digitalisation of business accelerates. The coming quarters may indeed offer a compelling entry into this evolving growth story.
How to buy Sage stock in United Kingdom?
Buying shares in Sage Group plc online is both straightforward and secure when you use a regulated UK broker. Whether you’re interested in directly owning Sage shares or prefer the agility of trading price changes via CFDs, online platforms have made access easier than ever. The two main approaches are: spot (cash) buying—ideal for those aiming for long-term ownership, and trading contracts for difference (CFDs)—which lets you speculate on short-term price movements using leverage. To help you choose the method and the platform that best suits your profile, we provide a detailed broker comparison further down the page.
Spot buying
A cash purchase means you buy Sage shares outright and become a shareholder. Using a UK broker, you place an order to purchase SGE shares on the London Stock Exchange. Most brokers charge a fixed commission per trade, commonly between £5 and £10.
Important Information
For example, if Sage’s share price is 1,275.50p (or £12.76), with £1,000 you could buy around 78 Sage shares (after accounting for a typical £5 brokerage fee).
Gain scenario: If Sage’s share price rises by 10%, your shares are now worth about £1,100. Result: That’s a £100 gross gain, or +10% on your investment.
Trading via CFD
CFDs (Contracts for Difference) let you speculate on Sage’s price without owning the underlying shares. This method allows the use of leverage: you commit a fraction of the position’s total value, amplifying both potential gains and risks. CFD brokers typically make money through a small spread (the difference between buy and sell prices) and may charge overnight financing fees if you hold positions for more than a day.
Important Information
For example: With a £1,000 stake and 5x leverage, you gain exposure to £5,000 worth of Sage shares.
Gain scenario: If the Sage stock price rises by 8%, your position delivers a 40% profit (8% × 5). Result: That’s a £400 gain on a £1,000 stake (excluding spreads and financing costs).
Final advice
Before investing, compare brokers for their fees, investor protections, and trading conditions to ensure you find the right fit. Some focus on low commissions for long-term holders; others are tailored to active traders. Ultimately, your choice should align with your objectives: direct ownership for investors seeking dividends and growth, or CFDs for those comfortable trading with leverage. A full broker comparator is available further down the page to help guide your next step.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Our 7 tips for buying Sage stock
| 📊 Step | 📝 Specific tip for Sage |
|---|---|
| Analyse the market | Review Sage’s recent transition to a cloud-first model and assess how its strong recurring revenues and cash generation position it in the growing SMB software sector within the UK market. |
| Choose the right trading platform | Select a UK-registered broker that provides easy access to the London Stock Exchange (LSE) for Sage shares, competitive fees, and user-friendly interfaces suitable for both new and experienced investors. |
| Define your investment budget | Decide in advance how much to allocate to Sage, bearing in mind its relatively high valuation and typical volatility; diversify with other holdings to manage risk within your portfolio. |
| Choose a strategy (short or long term) | Given Sage’s success in cloud growth and robust cash flow, consider a long-term approach to benefit from ongoing digital transformation and sustained dividend increases. |
| Monitor news and financial results | Stay informed about Sage’s earnings reports, cloud product launches, and AI innovations such as Sage Copilot, as these may trigger significant share price movements. |
| Use risk management tools | Employ stop-loss orders or set alert thresholds to protect gains and limit losses, making use of platform tools to manage exposure as Sage’s stock can display short-term volatility. |
| Sell at the right time | Watch for periods of strong price performance—such as after quarterly results or buyback announcements—to consider taking profits, but avoid panic selling during routine market dips. |
The latest news about Sage
Sage announces robust FY2024 results with significant growth in revenue and profitability. The company reported underlying total revenue of £2,332 million for the year ended September 30, 2024, an increase of 9% year-over-year, alongside a 21% rise in underlying operating profit to £529 million and improved margins across the board. This surge in profitability is complemented by a 30% rise in free cash flow to £524 million and sustained strong cash conversion at 123%, underscoring the resilience and efficiency of Sage’s operations. For UK stakeholders, this performance not only signals a healthy financial position but also demonstrates the successful execution of its cloud-centric transformation strategy, critical for maintaining market leadership amid growing competition.
Sage announces a £400 million share buyback and a 6% increase in its full-year dividend. Demonstrating confidence in future prospects and consistent cash generation, Sage unveiled a significant capital return to shareholders, proposing a £400 million share repurchase alongside raising its full-year dividend to 20.45p per share. This capital allocation not only reinforces the company’s shareholder-friendly stance but also reflects solid underlying fundamentals and a strong balance sheet, notably with £1.1 billion in cash. For UK investors, this creates a compelling income proposition and signals management’s continued confidence in sustainable financial performance.
Sage’s cloud-native and subscription-based offerings accelerate, with 82% subscription penetration and strong recurring revenues. The company’s SaaS pivot continues to drive top-line growth, with annualised recurring revenue reaching £2,339 million (+11% YoY) and subscription revenue expanding 13% to £1,910 million. The UK market in particular benefits from increased adoption, as Sage’s focus on cloud solutions and its AI-powered Sage Copilot have deepened engagement among SMEs—a pivotal segment for the local economy. These metrics underpin a predictable, robust revenue base critical for weathering macroeconomic uncertainties and reflect Sage’s differentiated positioning against international competitors.
Sage’s technical outlook remains constructive with the stock trading above key moving averages, despite short-term volatility. The current share price of 1,275.50p stands well above its 20-, 50-, 100-, and 200-day averages, all generating buy signals, which suggests sustained underlying momentum in the face of recent market fluctuations. The stock’s 1-week decline (-6.51%) contrasts with a long-term uptrend (+7.82% over the past year), indicating resilience. This technical strength, particularly relevant for UK investors accustomed to stringent market standards, presents a favourable setup for continued interest, though some technical oscillators suggest the stock is in overbought territory.
Sage’s strategic investments in AI and cloud platforms bolster its long-term competitive positioning. Significant advancements, such as the rollout of Sage Copilot to over 8,000 customers and the expansion of the Sage Network platform, reaffirm the company’s commitment to digital innovation. For the UK market, which prioritises scalable and intelligent solutions for SMEs, these developments enhance Sage’s relevance and customer stickiness. The company’s disciplined cost management is enabling ongoing investment in technology without compromising profitability, supporting expectations for further revenue growth and margin expansion throughout FY2025.
FAQ
What is the latest dividend for Sage stock?
Sage is a dividend-paying stock. The company’s latest proposed final dividend is 13.50p per share, bringing the total full-year dividend for FY2024 to 20.45p per share. The dividend follows a semi-annual schedule, with the most recent ex-dividend date set for January 9, 2025. Sage has a solid track record of growing its dividend, reflecting confidence in its cash generation and future prospects.
What is the forecast for Sage stock in 2025, 2026, and 2027?
Based on the current share price of 1,275.50p, projections stand at 1,658p for end of 2025, 1,913p for end of 2026, and 2,551p for end of 2027. This optimistic outlook is supported by Sage’s strong recurring revenue model, accelerated cloud adoption, and ongoing innovation, all of which contribute to positive momentum in the technology sector.
Should I sell my Sage shares?
Holding onto Sage shares may be worthwhile, considering the company’s resilient business model and robust financial performance. Sage’s transition to a cloud-first, subscription-based model underpins stable revenues and healthy margins, while its consistent dividend growth reflects careful capital management. The company’s established market position and strategic focus on innovation provide a solid foundation for mid- to long-term growth, making continued holding an attractive option based on fundamentals.
Are Sage shares eligible for tax-efficient wrappers like an ISA in the UK?
Yes, Sage shares are eligible to be held within a UK Individual Savings Account (ISA), which means qualifying investors can benefit from tax-free dividend income and capital gains. This makes Sage an attractive choice for those seeking to maximise after-tax returns, as dividends and gains realised within an ISA are not subject to UK Income Tax or Capital Gains Tax, irrespective of the amounts involved.
What is the latest dividend for Sage stock?
Sage is a dividend-paying stock. The company’s latest proposed final dividend is 13.50p per share, bringing the total full-year dividend for FY2024 to 20.45p per share. The dividend follows a semi-annual schedule, with the most recent ex-dividend date set for January 9, 2025. Sage has a solid track record of growing its dividend, reflecting confidence in its cash generation and future prospects.
What is the forecast for Sage stock in 2025, 2026, and 2027?
Based on the current share price of 1,275.50p, projections stand at 1,658p for end of 2025, 1,913p for end of 2026, and 2,551p for end of 2027. This optimistic outlook is supported by Sage’s strong recurring revenue model, accelerated cloud adoption, and ongoing innovation, all of which contribute to positive momentum in the technology sector.
Should I sell my Sage shares?
Holding onto Sage shares may be worthwhile, considering the company’s resilient business model and robust financial performance. Sage’s transition to a cloud-first, subscription-based model underpins stable revenues and healthy margins, while its consistent dividend growth reflects careful capital management. The company’s established market position and strategic focus on innovation provide a solid foundation for mid- to long-term growth, making continued holding an attractive option based on fundamentals.
Are Sage shares eligible for tax-efficient wrappers like an ISA in the UK?
Yes, Sage shares are eligible to be held within a UK Individual Savings Account (ISA), which means qualifying investors can benefit from tax-free dividend income and capital gains. This makes Sage an attractive choice for those seeking to maximise after-tax returns, as dividends and gains realised within an ISA are not subject to UK Income Tax or Capital Gains Tax, irrespective of the amounts involved.
