Sabra Healthcare stock hits 52-week high at $17.65

Published 10/09/2024, 21:00
Sabra Healthcare stock hits 52-week high at $17.65

Sabra Healthcare REIT Inc . (NASDAQ:SBRA) stock reached a 52-week high, touching $17.65, signaling a robust period for the healthcare-focused real estate investment trust. This peak comes amidst a notable year for the company, which has seen its stock value surge by 33.18% over the past year. Investors have shown increased confidence in Sabra Healthcare's portfolio of properties, which primarily include senior housing and skilled nursing/mental health facilities, as the sector continues to recover and adapt to the post-pandemic landscape. The company's strategic acquisitions and management practices have contributed to this upward trajectory, reflecting a strong performance in a competitive industry.


In other recent news, Sabra Healthcare REIT Inc. has experienced significant developments. Truist Securities has upgraded its price target for the company to $18 from $16, maintaining a Buy rating. This decision is based on the company's Funds From Operations (FFO) multiple, which is currently steady at 12.4 times. The firm anticipates that Sabra Healthcare's relative discount could narrow if the company's near-term growth meets projections. Additionally, Mizuho has increased its price target for Sabra Healthcare to $18 from $17, emphasizing the company's anticipated adjusted funds from operations (AFFO) growth leading into fiscal 2025.


Sabra Healthcare reported robust growth in its second quarter of 2024, with a 17.7% increase in cash NOI and improved occupancy rates in senior housing and skilled nursing facilities. The company raised its full-year 2024 guidance, suggesting confidence in continued growth. Furthermore, the company's investment pipeline is robust, with approximately $0.75 billion of deals under review. These developments highlight Sabra Healthcare's strategic approach in navigating the post-pandemic landscape, emphasizing growth in its senior housing and skilled nursing portfolios.


InvestingPro Insights


The recent performance of Sabra Healthcare REIT Inc. (SBRA) is underscored by several positive indicators. Notably, analysts have revised their earnings upwards for the upcoming period, reflecting optimism about the company's financial prospects. This aligns with expectations of net income growth this year, as indicated by InvestingPro Tips. Additionally, Sabra Healthcare is trading at a low P/E ratio relative to near-term earnings growth, suggesting a potentially undervalued stock poised for further gains. The company also boasts a significant dividend yield of 6.91%, rewarding shareholders and maintaining a consistent dividend payment history for 14 consecutive years. These aspects, combined with a strong return over the last three months of 25.78%, highlight the company's robust financial health and market position.


InvestingPro Data further reveals that Sabra Healthcare has a market capitalization of $4.12 billion, with an adjusted P/E ratio for the last twelve months as of Q2 2024 standing at 36.0. The company has also demonstrated solid revenue growth of 22.99% over the same period, indicating its operational success. With a price close to its 52-week high, the company's stock is currently trading at 99.55% of this peak value. For investors seeking more insights, InvestingPro offers additional tips and a comprehensive fair value estimate of $18.40, suggesting potential room for the stock price to grow.


To explore further details and receive additional InvestingPro Tips, investors can visit https://www.investing.com/pro/SBRA.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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