Assessing Whether Sabre Corporation (NASDAQ: SABR) Is Over- Or Undervalued


    Invesco Canada Ltd. has recently announced that it has increased stake in Sabre Corporation (NASDAQ:SABR) by 23.61%. After grabbing 14.76 million shares, the institutional investor is now in possession of 2.82 million shares of the Technology Company. The new investment brought the stake of investor firm to 5.36% having worth around $111.6 million. Moreover, Clarkston Capital Partners LLC increased its share by 73550.0 to have a control over 11.71 million shares. And Yiheng Capital LLC raised its holdings to 9.43 million shares by acquiring 9.43 million shares or 3.42% of the stake.

    Sabre Corporation (SABR) concluded trading on 08/27/20 at a closing price of $7.01, with 13.12 million shares of worth about $92.0 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 2.94% during that period and on Thursday the price saw a gain of about 0.72%. Currently the company’s common shares owned by public are about 275.69M shares, out of which, 272.63M shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 9 analysts are covering the SABR stock and their offered price forecasts bring an average price target of $7.67. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $14.00 and could fall to a lowest price of $5.00. Analysts also issued an outlook of 2.80 for the Sabre Corporation stock for next 12 months. The stock’s current price level is 19.89% above of average price target set by the analysts, while a rise to estimated low would result in loss of -40.2 for the stock. However, touching the estimated high of $14.00 would mean a gain of 49.93% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 71 times over the past 12 months. They bought 3,072,606 shares in 46 of the transactions. In 25 selling transactions, insiders dumped 269,129 shares.

    Invesco Global Companies Fund, Vanguard Total Stock Market Index, and iShares Core S&P Mid Cap ETF are the top 3 mutual funds which are holding stakes in Sabre Corporation Invesco Global Companies Fund is currently holding 9.04 million shares of worth totaling $68.34 million. The company recently came buying 1.82 million shares which brought its stake up to 3.28% of the company’s outstanding shares. Vanguard Total Stock Market Index sold 4977.0 shares, after which its hold over company’s outstanding shares shrunk to 2.85%, leaving 7.86 million shares with the mutual fund that have a worth of about $59.43 million. iShares Core S&P Mid Cap ETF, after selling 7.29 million shares, have now control over 2.65% of the stake in the company. It holds 71537.0 shares of worth $55.09 million.

    Sabre Corporation (NASDAQ: SABR) started trading at $7.08, above $0.12 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $7.01, or with a gain of 0.72%. Stock saw a price change of 2.94% in past 5 days and over the past one month there was a price change of -8.84%. Year-to-date (YTD), SABR shares are showing a performance of -68.76% which decreased to -69.78% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $3.30 but also hit the highest price of $23.88 during that period. While comparing its average daily trading volume of 8.72 million shares, we see that about 13.12 million changed hands on the day. The stock is currently trading -8.69% below its 20-day simple moving average (SMA20), while that difference is down -10.56% for SMA50 and it goes to -45.67% lower than SMA200.

    Invesco Canada Ltd. acquired 14.76 million shares of Sabre Corporation having value of about $111.6 million. Data submitted at the U.S SEC by Invesco Canada Ltd. revealed that the firm now holds 2.82 million shares in the company valued at close to $19763986.99, or have control over 23.61% stake in the company. Sabre Corporation (NASDAQ: SABR) currently have 275.69M outstanding shares and institutions hold larger chunk of about 98.70% of that. Holding of mutual funds in the company is about 43.97% while other institutional holders and individual stake holders have control over 53.74% and 11.07% of the stake respectively.

    The stock has a current market capitalization of $1.95B and its 3Y-monthly beta is at 1.75. It has posted earnings per share of -$2.10 in the same period. It has Quick Ratio of 2.30 while making debt-to-equity ratio of 14.80. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for SABR, volatility over the week remained 4.74% while standing at 5.34% over the month.

    Analysts are in expectations that Sabre Corporation (SABR) stock would likely to be making an EPS of -$0.73 in the current quarter, while forecast for next quarter ESPS is -$0.48 and it is -$0.68 for next year. For the current quarter EPS, analysts have given the company a lowest target -$0.85 which is -$0.59 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.27 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -47.90% while it is estimated to increase by 73.20% in next year.

    Analysts at 9 brokerage firms have issued recommendations for the Sabre Corporation (SABR)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.80. Out of those 9 Wall Street analysts, 1 recommended a “Buy” rating, while 4 were in favor recommending the stock as a “Hold” and 1 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Bernstein on May 11, 2020 offering an Outperform rating for the stock and assigned a target price range of between $6 and $10 to it. Coverage by Mizuho stated Sabre Corporation (SABR) stock as an Underperform in their note to investors on March 23, 2020, suggesting a price target of for the stock. On February 27, 2020, Oppenheimer Downgrade their recommendations, while on December 05, 2019, Morgan Stanley Resumed their ratings for the stock with a price target of. Stock get a Buy rating from BofA/Merrill on August 02, 2019.


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