Many stocks have been testing new highs in 2020, and one of the most notable is Sabre Corporation (SABR). Currently, SABR is trading at $10.24 and the avg recommendation for the stock is Hold. while the current analyst price target stands at $7.42.
To add more color to this target, the company’s high over the last year is $25.44 and the low is $3.30. Over the last 52 weeks, SABR is down -59.75% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, SABR reported a profit of $47.46 million. Sabre Corporation also saw revenues increase to $658.98 million. In addition, SABR has free cash flow of $11.99 million as of 03-2020 The company’s EBITDA came in at -$36.34 million which compares well with its peers.
SABR booked profit margins of -3.10%, its Return on Equity (ROE) is -12.80%, and its Return on Assets is -1.90%. All told, it is clear that, SABR needs to be on your watchlist.
About Sabre Corporation
If readers are unfamiliar, Sabre Corporation, through its subsidiary, Sabre Holdings Corporation, provides technology solutions to the travel and tourism industry worldwide. It operates in three segments: Travel Network, Airline Solutions, and Hospitality Solutions. The Travel Network segment operates as a business-to-business travel marketplace that offers travel content, such as inventory, prices, and availability from a range of travel suppliers, including airlines, hotels, car rental brands, rail carriers, cruise lines, and tour operators with a network of travel buyers comprising online and offline travel agencies, travel management companies, and corporate travel departments. The Airline Solutions segment provides a portfolio of software technology products and solutions through software-as-a-service (SaaS) and hosted delivery models to airlines and other travel suppliers. Its products include SabreSonic Customer Sales & Service, a reservation system that provides capabilities around managing sales and customer service across an airline’s touch points; Sabre AirVision Marketing & Planning, a set of airline commercial planning solutions; and Sabre AirCentre Enterprise Operations, a set of solutions for planning and management of airline, airport, and customer operations. The Hospitality Solutions segment provides software and solutions to hoteliers through SaaS and hosted delivery model. It offers SynXis, a central reservation system; SynXis Property Manager Solution for property management; and marketing, professional, and revenue management services. The company was founded in 2006 and is headquartered in Southlake, Texas.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SABR has a short ratio of 2.67 and outstanding shares of 274.04M.
SABR has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 13.12 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.40. Sabre Corporation SABR also noted assets of $5.71 billion at the end of the last quarter. Investors should also keep an eye on sector updates as SABR has historically followed its peers on positive news.
All told, Sabre Corporation SABR has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SABR represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Sabre Corporation SABR is now commanding a market cap of 2.81B and a float of 273.95M. SABR is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SABR stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in SABR, either long or short, and we have not been compensated for this article.