Sabre (SABR) Upgraded to Hold by Zacks Investment Research
According to Zacks, “Sabre is gaining from higher bookings and growth in SynXis software and services revenues. Moreover, collaboration with Microsoft and AWS for the cloud infrastructure of its SaaS-based solutions is positive. Its cost-saving initiatives and customer wins in Travel Network are tailwinds. Shares have outperformed the industry in the past year. Estimates have been stable ahead of the company’s first-quarter earnings release. However, Sabre is being affected by increased technology costs and a higher incentive fee, which kept margins under pressure. Moreover, the company is part of the highly competitive travel distribution market, which requires it to regularly enhance and upgrade its product portfolio, involving substantial investments. Sabre’s Travel Network segment is prone to pricing pressure from travel suppliers. Seasonality in the travel industry and stiff competition in the travel distribution market are headwinds.”
SABR has been the subject of several other reports. BidaskClub cut Sabre from a buy rating to a hold rating in a research note on Friday, February 15th. Sanford C. Bernstein cut Sabre from an outperform rating to a market perform rating in a research note on Thursday, February 14th. Bank of America cut Sabre from a buy rating to a neutral rating in a research note on Friday, January 4th. Finally, Berenberg Bank initiated coverage on Sabre in a research note on Monday, January 14th. They issued a sell rating and a $18.00 price target for the company. Two analysts have rated the stock with a sell rating, six have issued a hold rating and three have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus price target of $27.00.
Sabre (NASDAQ:SABR) last issued its quarterly earnings results on Tuesday, February 12th. The information technology services provider reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.33 by $0.01. The business had revenue of $923.90 million during the quarter, compared to analysts’ expectations of $930.19 million. Sabre had a return on equity of 43.59% and a net margin of 8.73%. The firm’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same period in the previous year, the company posted $0.32 earnings per share. As a group, analysts predict that Sabre will post 0.87 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, March 29th. Shareholders of record on Thursday, March 21st were given a dividend of $0.14 per share. The ex-dividend date was Wednesday, March 20th. This represents a $0.56 annualized dividend and a yield of 2.55%. Sabre’s dividend payout ratio is currently 39.44%.
In other news, Director Karl Mr. Peterson acquired 10,000 shares of the stock in a transaction on Tuesday, February 19th. The stock was acquired at an average cost of $22.40 per share, for a total transaction of $224,000.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider Richard A. Simonson sold 58,877 shares of the business’s stock in a transaction that occurred on Friday, March 22nd. The shares were sold at an average price of $21.22, for a total transaction of $1,249,369.94. Following the transaction, the insider now owns 339,333 shares of the company’s stock, valued at $7,200,646.26. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 226,970 shares of company stock valued at $4,972,930. Company insiders own 0.69% of the company’s stock.
Several large investors have recently made changes to their positions in SABR. Russell Investments Group Ltd. increased its holdings in shares of Sabre by 49.1% during the third quarter. Russell Investments Group Ltd. now owns 9,435 shares of the information technology services provider’s stock worth $246,000 after buying an additional 3,107 shares in the last quarter. Bank of New York Mellon Corp increased its holdings in shares of Sabre by 0.6% during the third quarter. Bank of New York Mellon Corp now owns 3,658,127 shares of the information technology services provider’s stock worth $95,405,000 after buying an additional 22,179 shares in the last quarter. Martingale Asset Management L P increased its holdings in shares of Sabre by 356.1% during the third quarter. Martingale Asset Management L P now owns 751,669 shares of the information technology services provider’s stock worth $19,605,000 after buying an additional 586,874 shares in the last quarter. FMR LLC increased its holdings in shares of Sabre by 23.2% during the third quarter. FMR LLC now owns 449,885 shares of the information technology services provider’s stock worth $11,733,000 after buying an additional 84,829 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Sabre by 5.1% during the third quarter. Dimensional Fund Advisors LP now owns 2,066,418 shares of the information technology services provider’s stock worth $53,894,000 after buying an additional 100,659 shares in the last quarter. Institutional investors own 94.00% of the company’s stock.
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.
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