Sabra Health Care REIT Inc. (NASDAQ: SBRA): Reassessing Prospects

BlackRock Fund Advisors has recently announced that it has increased stake in Sabra Health Care REIT Inc. (NASDAQ:SBRA) by 0.47%. After grabbing 28.22 million shares, the institutional investor is now in possession of 0.13 million shares of the Real Estate Company. The new investment brought the stake of investor firm to 12.20% having worth around $366.53 million. Moreover, Principal Global Investors LLC increased its share by 5.04 million to have a control over 20.69 million shares. And Geode Capital Management LLC raised its holdings to 0.18 million shares by acquiring 5.39 million shares or 2.33% of the stake.

Sabra Health Care REIT Inc. (SBRA) concluded trading on 09/13/23 at a closing price of $13.18, with 5.24 million shares of worth about $69.11 million changed hands on the day. Half year performance of the stock remained positive as price took a surge of 14.21% during that period and on Wednesday the price saw a loss of about -0.15%. Currently the company’s common shares owned by public are about 231.21M shares, out of which, 228.49M 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: 15 analysts are covering the SBRA stock and their offered price forecasts bring an average price target of $13.29. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $15.00 and could fall to a lowest price of $11.00. The stock’s current price level is 0.23% above of average price target set by the analysts, while a rise to estimated low would result in loss of -19.82% for the stock. However, touching the estimated high of $15.00 would mean a gain of 12.13% 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 52 times over the past 12 months. They bought 528,542 shares in 45 of the transactions. In 7 selling transactions, insiders dumped 123,277 shares.

Vanguard Real Estate Index Fund, iShares Core S&P Mid Cap ETF, and Vanguard Total Stock Market ETF are the top 3 mutual funds which are holding stakes in Sabra Health Care REIT Inc. Vanguard Real Estate Index Fund is currently holding 9.74 million shares of worth totaling $126.56 million. The company recently came buying 0.12 million shares which brought its stake up to 4.21% of the company’s outstanding shares. iShares Core S&P Mid Cap ETF bought 5304.0 shares, after which its hold over company’s outstanding shares expand to 3.21%, leaving 7.42 million shares with the mutual fund that have a worth of about $96.41 million. Vanguard Total Stock Market ETF, after selling 7.23 million shares, have now control over 3.13% of the stake in the company. It holds 11149.0 shares of worth $93.96 million.

Sabra Health Care REIT Inc. (NASDAQ: SBRA) started trading at $13.21, above $0.01 from concluding price of the previous day. However, the stock later moved at a day high price of 13.46, or with a loss of -0.15%. Stock saw a price change of 4.35% in past 5 days and over the past one month there was a price change of 4.52%. Year-to-date (YTD), SBRA shares are showing a performance of 6.03% which decreased to -12.32% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $10.08 but also hit the highest price of $14.91 during that period. The average intraday trading volume for Sabra Health Care REIT Inc. shares is 2.22 million. The stock is currently trading 5.97% above its 20-day simple moving average (SMA20), while that difference is up 4.91% for SMA50 and it goes to 8.52% higher than SMA200.

BlackRock Fund Advisors acquired 28.22 million shares of Sabra Health Care REIT Inc. having value of about $366.53 million. Data submitted at the U.S SEC by BlackRock Fund Advisors revealed that the firm now holds 0.13 million shares in the company valued at close to $1739377.78, or have control over 0.47% stake in the company. Sabra Health Care REIT Inc. (NASDAQ: SBRA) currently have 231.21M outstanding shares and institutions hold larger chunk of about 89.90% of that. Holding of mutual funds in the company is about 45.16% while other institutional holders and individual stake holders have control over 49.51% and 1.79% of the stake respectively.

The stock has a current market capitalization of $2.96B and its 3Y-monthly beta is at 1.29. It has posted earnings per share of -$0.53 in the same period. It has a debt-to-equity ratio of 0.82. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for SBRA, volatility over the week remained 2.21% while standing at 2.12% over the month.

Analysts are in expectations that Sabra Health Care REIT Inc. (SBRA) stock would likely to be making an EPS of $0.13 in the current quarter, while forecast for next quarter EPS is $0.13 and it is $0.56 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.12 which is $0.13 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 -$0.22 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 35.00% while it is estimated to increase by 84.54% in next year. EPS is likely to grow at an annualized rate of 7.30% for next 5-years, compared to annual growth of -17.50% made by the stock over the past 5-years.

Analysts at 15 brokerage firms have issued recommendations for the Sabra Health Care REIT Inc. (SBRA)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.70. Out of those 15 Wall Street analysts, 4 recommended a “Buy” rating, while 10 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 BofA Securities on August 11, 2023 offering a Neutral rating for the stock and assigned a target price range of between $11 and $14 to it.