Fact Check: What’s wrong with Sabra Health Care REIT, Inc. (SBRA) today

The biggest losers of the session on the Wall Street include Sabra Health Care REIT, Inc. (NASDAQ:SBRA), which fell -0.52 points or -2.55% to trade at $19.68 as last check. The stock closed last session at $20.2 and sets an active trading volume day with a reported 731168 contracts so far this session. SBRA shares had a relatively better volume day versus average trading capacity of 1.84 million shares, but with a 0.18 billion float and a 4.83% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for SBRA stock indicates that the average analyst price target is $18.22 per share. This means the stock has a potential decrease of -7.42% from where the SBRA share price has been trading recently which is between $19.95 and $20.4. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $17.

The shorts are climbing into Sabra Health Care REIT, Inc. (SBRA) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a rise in short interest in SBRA shares. While short interest still represents only 3.77% of SBRA’s float, the number of shares shorted have risen by 108156. The number of shares shorted advanced to 6752242 shares, up from 6644086 shares during the preceding fortnight. With average daily trading volumes at 1254608 shares, days to cover increased to about 4.660443 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Edited Transcript of SBRA earnings conference call or presentation 9-May-19 5:00pm GMT” and dated May 13, 2019.

During the recent trading session for Sabra Health Care REIT, Inc. (NASDAQ:SBRA), the company witnessed their stock drop by $-0.05 over a week and surge $0.56 from the price 20 days ago. When compared to their established 52-week high of $23.83, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 09/05/18. The recent low of $15.7 stood for a -17.39% since 12/26/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.98 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Sabra Health Care REIT, Inc., the two-week RSI stands at 53.08. This figure suggests that SBRA stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current SBRA readings is similarly very revealing as it has a stochastic reading of 73.19% at this stage. This figure means that SBRA share price today is being oversold.

Technical chart claims that Sabra Health Care REIT, Inc. (SBRA) would settle between $20.42/share to $20.63/share level. However, if the stock price goes below the $19.97 mark, then the market for Sabra Health Care REIT, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $19.73 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.22. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at SunTrust lowered their recommendation on shares of SBRA from Buy to Hold in their opinion released on December 18. BofA/Merrill analysts have lowered their rating of Sabra Health Care REIT, Inc. (NASDAQ:SBRA) stock from Neutral to Underperform in a separate flash note issued to investors on November 16. Analysts at Raymond James released an upgrade from Mkt Perform to Outperform for the stock, in a research note that dated back to May 21.

SBRA equity has an average rating of 3.2, with the figure leaning towards a bullish end. 10 analysts who tracked the company were contacted by Reuters. Amongst them, 8 rated the stock as a hold while the remaining 2 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 0 analysts rated Sabra Health Care REIT, Inc. (NASDAQ:SBRA) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, SBRA stock price is currently trading at 24.05X forward 12-month Consensus EPS estimates, and its P/S ratio is 6.1 while for the average stock in the same group, the multiple is 11.57. Sabra Health Care REIT, Inc. current P/E ratio of 27.45 means it is trading at a discount against its industry’s 67.27. In the past 5 years, this ratio for the stock has been fluctuating between 10.94 and 38.79.

Sabra Health Care REIT, Inc. (SBRA)’s current-quarter revenues are projected to climb by nearly -8.34% to hit $152440, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over -10.68% from $623410 to a noteworthy $556810. At the other end of the current quarter income statement, Sabra Health Care REIT, Inc. is expected to see its adjusted earnings surge by roughly -15.79% to hit $0.48 per share. For the fiscal year, SBRA’s earnings are projected to climb by roughly -16.16% to hit $1.92 per share.