Sabre Corporation (SABR) Moving On Heavy Volume In The Pre-Market Hours

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Sabre Corporation ( SABR) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sabre Corporation as such a stock due to the following factors:

  • SABR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.7 million.
  • SABR traded 116,650 shares today in the pre-market hours as of 8:00 AM, representing 11.4% of its average daily volume.

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More details on SABR:

Sabre Corporation provides technology solutions to the travel and tourism industry worldwide. It operates in two segments: Travel Network, and Airline and Hospitality Solutions. The stock currently has a dividend yield of 1.4%. SABR has a PE ratio of 51. Currently there are 11 analysts that rate Sabre Corporation a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Sabre Corporation has been 1.1 million shares per day over the past 30 days. Sabre has a market cap of $7.1 billion and is part of the technology sector and computer software & services industry. Shares are up 30.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sabre Corporation as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and notable return on equity. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 125.00% and other important driving factors, this stock has surged by 59.91% over the past year, outperforming the rise in the S&P 500 Index during the same period.
  • The revenue growth came in higher than the industry average of 22.5%. Since the same quarter one year prior, revenues slightly increased by 6.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SABRE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, SABRE CORP turned its bottom line around by earning $0.41 versus -$0.04 in the prior year. This year, the market expects an improvement in earnings ($1.05 versus $0.41).
  • The gross profit margin for SABRE CORP is currently lower than what is desirable, coming in at 33.98%. Regardless of SABR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SABR's net profit margin of 29.21% significantly outperformed against the industry.
  • The debt-to-equity ratio is very high at 10.80 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, SABR maintains a poor quick ratio of 0.74, which illustrates the inability to avoid short-term cash problems.

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