Investors Lower Their Short Positions For Sabra Health Care REIT, Inc. (SBRA)

For the period that ended November 15, 2019, the short interest in Sabra Health Care REIT, Inc. (NASDAQ:SBRA) stock is on the down. The 10.28% decline could be an indication that investors and traders expect a growth in the share price, often as a result of an advancement in the business’ fundamentals. The average brokerage opinion at 3.1 suggests acquiring these shares. Between October 31 and November 15, the total count of shorted shares totalled 5.4 million. That number was 618,722 less shares compared with the total of 6.02 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move up. The average daily volume for SBRA at the November 15th settlement surged to 2,195,092, versus 1,287,976 at the October 31st report. That led days to cover to move at 2.460992, a 47.35% decrease compared to the 4.674641 days to cover recorded at the prior short interest data release.

On December 03, 2019, Sabra Health Care REIT, Inc. (NASDAQ:SBRA) shares gained 1.34% or 0.29 points to close at $21.96 with a heavy trading volume of 3.546 million shares. It opened the trading session at $21.68, the shares rose to $21.975 and dropped to $21.51, the range by which the price of stock traded the whole day. The company now has a market cap of $4.27 billion and currently has 194.56 million outstanding shares. Sabra Health Care REIT, Inc. (SBRA) stock has plunged -9.74 percent of market value in 21 trading days.

SBRA stock’s trailing 3-year beta is 0.77, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $0.04 share in the trailing 52 weeks. The stock’s value surged 33.25 percent year to date (YTD) compared to a rise of 13.84 percent in 52 week’s period. The firm’s shares are still trading -12 percent below its 1-year high of $24.95 and 39.87 percent up from 52-week low of $15.70. The average consensus ranking on the company is 3.1, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.

Sabra Health Care REIT, Inc. (SBRA) is most likely going to rise 0.55 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $26-month high price target. This represents a whopping 18.4 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $22, which means a return possibility of 0.18 percent in comparison with the closing price of the stock of $21.96 on December 03. The lowest price set for the stock is $17 — just above -22.59 percent from SBRA share price now.

Past records have indicated that shares in Sabra Health Care REIT, Inc. rose on 15 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of SBRA’s Q4 earnings on February 20. Analysts are predicting revenue to climb 9.5 percent to $152M in the financial fourth quarter, while EPS will soar by about -322.22 percent to $0.2 per share. Revenue for the quarter was $139.21M, missing the $144.25M analysts had expected. Earnings are seen to rise by 7.7 percent this year, 134.9 percent in the coming year and the trend continues by 6 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Sabra Health Care REIT, Inc. (NASDAQ:SBRA) and observe the pattern. The earliest insider trade happened on 11/04/2019. MATROS RICHARD K parted with a total of 113 thousand shares of the firm at average share price of $24.05. The total amount for the sale was set at $2.72 million. On completing this exchange, the Chairman, CEO and President account balance was 1.22 million shares. The stock lost -8.69 percent from that insider sale. On 08/26/2019, Lewis Raymond J, Director, did a sale of 58 thousand shares at a price of $21.47 per share. This got rid of 1.25 million shares from the insider’s fortune and the stock experienced a 2.28 percent rally in price since the news became public. This exchange saw 200.54 thousand shares get out from the Director account.

On 08/14/2019, Director FOSTER MICHAEL J recorded a sale transaction valued at $311.7 thousand. The sale at $20.78 a share has eliminated 15 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 5.68 percent increase since the transaction reporting date. The company insider is left with 71.31 thousand shares remaining in the account. Andrews Harold W. Jr., who works as Executive VP, CFO & Secretary at the company, performed a sale of 0.6 thousand shares in a transaction worth $10.42 thousand. The disposal recorded on 03/22/2018 was priced at $17.36 per share. The stock price soared 26.5 percent since the transaction. Andrews Harold W. Jr. currently holds a stake of 0 thousand in SBRA stock which is worth $0 thousand after the insider selling.

The stock is lingering around the initial support level of $21.65. After this, the following support is at the zone of $21.35. Up until the time the SBRA stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 43.69 on the daily chart, and this may be a cause for concern. In case the price goes below $21.35 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $22.12 level may cause a pull-back move approaching $22.28 mark.

Sabra Health Care REIT, Inc. (SBRA) shares are trading at a P/E ratio of 439.2 times earnings posted in the trailing 12 months. The industry SBRA deals with has an average P/E of 35.4. Its P/B ratio is standing at 1.3X compared to the 2.2 industry average. It is additionally sporting a 6.2 on the Price-to-Sales ratio, compared to the industry’s P/S average of 6.6. Sabra Health Care REIT, Inc. has a 88.7% gross profit margin, with its operating margin around 5.1%. Alongside this, the company’s net profit margin currently stands at 1.5%.