Sabra Health Care (SBRA) Soars 1.01% on Upgrade, Earnings

Sabra Health Care (SBRA) shares surged 1.01% today, marking the second consecutive day of gains, with a total increase of 4.57% over the past two days. The stock price reached its highest level since December 2024, with an intraday gain of 2.74%.

The strategy of buying SBRA shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 7.46% annualized return. This indicates a relatively conservative approach that captured some of the subsequent gains in the stock.

JMP Securities recently upgraded Sabra Health Care REIT from a "market perform" rating to an "outperform" rating, setting a target price of $20.00 for the company. This upgrade reflects the positive outlook on Sabra's financial performance and growth prospects.

Sabra Health Care REIT's Q1 2025 earnings report highlighted a net income of $0.17 per diluted share and funds from operations (FFO) of $0.36 per share. The company reported a significant increase in same-store managed senior housing cash net operating income, which rose by 16.9% year-over-year. This strong performance underscores Sabra's ability to generate consistent cash flow from its senior housing portfolio.

Sabra demonstrated robust financial metrics, including a normalized FFO of $0.35 per share and an adjusted funds from operations (AFFO) of $0.37 per share. The company maintained a strong liquidity position with approximately $1.1 billion available, providing ample resources for future acquisitions and growth initiatives.

Fitch Ratings affirmed Sabra's ‘BBB-‘ credit rating with a stable outlook, indicating positive growth prospects, particularly in expanding its senior housing managed portfolio. This affirmation supports the company's stable financial outlook and its ability to continue acquiring high-yield assets.

Sabra's management remains optimistic about continued growth and acquisition of high-yield assets, which supports the company's stable financial outlook. The company's strategic focus on expanding its senior housing managed portfolio is expected to drive future growth and enhance shareholder value.