Stock Analysis

Don't Ignore The Fact That This Insider Just Sold Some Shares In Sabra Health Care REIT, Inc. (NASDAQ:SBRA)

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We'd be surprised if Sabra Health Care REIT, Inc. (NASDAQ:SBRA) shareholders haven't noticed that the Lead Independent Director, Michael Foster, recently sold US$105k worth of stock at US$17.44 per share. On the bright side, that sale was only 9.7% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Sabra Health Care REIT

Sabra Health Care REIT Insider Transactions Over The Last Year

Notably, that recent sale by Michael Foster is the biggest insider sale of Sabra Health Care REIT shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$17.70, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 9.7%of Michael Foster's holding.

Over the last year, we can see that insiders have bought 13.88k shares worth US$117k. But insiders sold 6.00k shares worth US$105k. In total, Sabra Health Care REIT insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqGS:SBRA Insider Trading Volume March 12th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Sabra Health Care REIT Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Sabra Health Care REIT insiders own about US$50m worth of shares. That equates to 1.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Sabra Health Care REIT Tell Us?

The insider sales have outweighed the insider buying, at Sabra Health Care REIT, in the last three months. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're happy enough to look past some selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 3 warning signs for Sabra Health Care REIT (1 is a bit unpleasant) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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What are the risks and opportunities for Sabra Health Care REIT?

As of March 31, 2022, Sabra’s investment portfolio included 416 real estate properties held for investment.

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  • Trading at 48.8% below our estimate of its fair value

  • Earnings are forecast to grow 27.73% per year


  • Interest payments are not well covered by earnings

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