Why Sabre (SABR) Stock Is Trading Lower Today
What Happened:
Shares of travel technology company Sabre (NASDAQ:SABR) fell 28.3% in the morning session after the company reported fourth-quarter results with revenue falling slightly below analysts' expectations. Guidance was even worse, with revenue and adjusted EBITDA outlook for the next quarter and the full year all below Wall Street's estimates. Overall, the results could have been better.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Sabre? Access our full analysis report here, it's free.
What is the market telling us:
Sabre's shares are quite volatile and over the last year have had 53 moves greater than 5%. But moves this big are very rare even for Sabre and that is indicating to us that this news had a significant impact on the market's perception of the business.
Sabre is down 25.8% since the beginning of the year, and at $3.17 per share it is trading 45.1% below its 52-week high of $5.77 from February 2023. Investors who bought $1,000 worth of Sabre's shares 5 years ago would now be looking at an investment worth $140.70.
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.