Barclays Issues Pessimistic Forecast for Sabra Healthcare REIT (NASDAQ:SBRA) Stock Price

Key Points

• Barclays lowered Sabra Healthcare REIT’s price target to $21 from $23 while maintaining an “equal weight” rating, implying roughly 9.3% upside from the stock’s $19.21 price.
• Analyst sentiment remains broadly favorable, with seven Buy and seven Hold ratings producing a “Moderate Buy” consensus and an average target price of $21.69.
• Sabra’s latest quarter showed revenue growth of 24.7% year over year to $230.11 million, but adjusted earnings missed estimates; meanwhile, CEO Richard Matros sold 200,000 shares under a pre-arranged trading plan.

Sabra Healthcare REIT (NASDAQ:SBRA - Get Free Report) had its target price decreased by Barclays from $23.00 to $21.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The brokerage currently has an "equal weight" rating on the real estate investment trust's stock. Barclays's price target would indicate a potential upside of 9.29% from the company's current price.

Several other research analysts have also commented on SBRA. Robert W. Baird boosted their price target on Sabra Healthcare REIT from $20.00 to $21.00 and gave the stock a "neutral" rating in a research report on Monday, August 31st. Truist Financial upped their price objective on Sabra Healthcare REIT from $22.00 to $24.00 and gave the stock a "buy" rating in a research note on Wednesday, July 22nd. Scotiabank dropped their price objective on Sabra Healthcare REIT from $22.00 to $19.00 and set a "sector perform" rating on the stock in a research report on Thursday, June 18th. Huntington began coverage on Sabra Healthcare REIT in a research note on Thursday, September 10th. They issued an "outperform" rating and a $23.00 target price on the stock. Finally, Wall Street Zen upgraded shares of Sabra Healthcare REIT from a "sell" rating to a "hold" rating in a report on Sunday, June 28th. Seven equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, Sabra Healthcare REIT currently has a consensus rating of "Moderate Buy" and an average target price of $21.69.

Sabra Healthcare REIT Stock Up 0.1%

Shares of NASDAQ SBRA traded up $0.01 during midday trading on Tuesday, reaching $19.21. 271,514 shares of the company's stock traded hands, compared to its average volume of 2,678,423. The company has a market cap of $4.91 billion, a price-to-earnings ratio of 73.95, a P/E/G ratio of 1.44 and a beta of 0.63. The stock's 50 day simple moving average is $20.19 and its 200-day simple moving average is $20.08. The company has a quick ratio of 3.07, a current ratio of 3.07 and a debt-to-equity ratio of 0.95. Sabra Healthcare REIT has a one year low of $17.17 and a one year high of $22.77.

Sabra Healthcare REIT (NASDAQ:SBRA - Get Free Report) last issued its quarterly earnings data on Monday, August 3rd. The real estate investment trust reported ($0.10) EPS for the quarter, missing analysts' consensus estimates of $0.17 by ($0.27). The business had revenue of $230.11 million during the quarter, compared to the consensus estimate of $219.39 million. Sabra Healthcare REIT had a return on equity of 2.34% and a net margin of 7.61%. The business's quarterly revenue was up 24.7% on a year-over-year basis. During the same period last year, the firm earned $0.38 EPS. On average, analysts predict that Sabra Healthcare REIT will post 1.52 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Richard Matros sold 200,000 shares of the company's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $20.83, for a total transaction of $4,166,000.00. Following the transaction, the chief executive officer directly owned 1,657,686 shares of the company's stock, valued at $34,529,599.38. This represents a 10.77% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.09% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Principal Financial Group Inc. increased its position in shares of Sabra Healthcare REIT by 0.4% in the 1st quarter. Principal Financial Group Inc. now owns 25,052,121 shares of the real estate investment trust's stock valued at $481,755,000 after acquiring an additional 98,770 shares during the period. Lasalle Investment Management Securities LLC lifted its position in Sabra Healthcare REIT by 8.2% during the 1st quarter. Lasalle Investment Management Securities LLC now owns 3,824,622 shares of the real estate investment trust's stock worth $73,547,000 after acquiring an additional 290,405 shares during the period. Dimensional Fund Advisors LP grew its stake in Sabra Healthcare REIT by 7.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,725,337 shares of the real estate investment trust's stock valued at $71,640,000 after purchasing an additional 269,793 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of Sabra Healthcare REIT by 6.8% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,208,600 shares of the real estate investment trust's stock valued at $61,701,000 after purchasing an additional 203,226 shares during the period. Finally, Rush Island Management LP purchased a new position in shares of Sabra Healthcare REIT in the first quarter worth about $30,735,000. Hedge funds and other institutional investors own 99.40% of the company's stock.

Sabra Healthcare REIT Company Profile

Sabra Healthcare REIT, Inc is a self-managed real estate investment trust that owns and invests in healthcare-related real estate. The company primarily provides capital to healthcare operators through property ownership, leases, mortgage loans, and other investment structures.

Sabra's portfolio has historically included skilled nursing facilities, senior housing communities, behavioral health facilities, specialty hospitals, and other healthcare properties. Its properties are generally leased to or operated by third-party healthcare providers, allowing the company to participate in the healthcare real estate market without directly delivering most patient-care services.

Founded in 2010, Sabra Healthcare REIT serves healthcare markets primarily in the United States, with investments that have also included select properties in Canada.

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