What Are These 2 Stocks Telling Us? – Sabre Corporation (SABR), Forum Merger II Corporation (FMCI)

Sabre Corporation (NASDAQ: SABR) shares are -70.59% down in the year-to-date (YTD) period and have moved -5.58% or -$0.39 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +100.00% lower. Comparatively, the stock is -71.61% down YTD and -23.79% over the trailing 3-month period. If we look at the shorter duration, its week performance is -5.98% and -13.56% over the month.

Analyst Recommendations

On March 23, 2020, Mizuho recommended the SABR stock is a Underperform, while earlier, Bernstein had Upgrade the stock as a Outperform on May 11, 2020. 9 analysts offering the recommendations for the stock have a consensus rating of 3.00 to suggest that the SABR stock is a “Hold. 1 of the 9 analysts rate the stock as a “Sell”, while 2 has rated it as “Underweight”. 1 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $6.60 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $8.20. The consensus price target represents an upside potential 19.51.

Earnings Forecast

Analysts estimate the earnings to decrease -54.80% in the current quarter to -$0.73, down from the $0.27 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$2.6, down -62.60% from $1.01 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.52 and -$0.38. Wall Street estimates earnings per share to be at an average of -$0.68 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 46 over the last 12 months, while SEC filings reveal that there have been 25 insider sales over the same period. Insiders have purchases 3,072,606 shares while those sold by company executives and officers stand at 269,129. The last 3 months have seen insiders trade a total of 2,474,774 and 20,521 in purchases and sales respectively.

MENKE SEAN E, a President and CEO at the company, sold 17,000 shares worth $0.37 million at $21.71 per share on Feb 03. The Director had earlier bought another 10,000 SABR shares valued at $65400.0 on May 11. The shares were bought at $6.54 per share. MENKE SEAN E (President and CEO) sold 8,513 shares at $23.07 per share on Jan 21 for a total of $0.2 million while MENKE SEAN E, (President and CEO) sold 17,000 shares on Jan 02 for $0.38 million with each share fetching $22.59.

Forum Merger II Corporation (NASDAQ:FMCI), on the other hand, is trading around $18.36 with a market cap of $379.14M and analyst research firms have a positive stance on its shares.

Let us briefly look at the Forum Merger II Corporation (FMCI) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

FMCI’s operating expenses over the recent quarter were at -$0.54 million. This represented a 200.0% of the company’s total revenues which amounted $0.54 million. With this in place, we can see that the company’s diluted EPS declined -$0.07 on the year-over-year period, shrinking to -$0.01 as given in the last earnings report.

The company’s free cash flow for the quarter was -$1.62 million.

Major holders

Insiders own 26.89% of the company shares, while shares held by institutions stand at 97.77% with a share float percentage of 1.93M. Investors are also buoyed by the number of investors in a company, with Forum Merger II Corporation having a total of 49 institutions that hold shares in the company. The top two institutional holders are Falcon Edge Capital, LP with over 1.98 million shares worth more than $32.54 million. As of Jun 29, 2020, Falcon Edge Capital, LP held 9.58% of shares outstanding.

The other major institutional holder is Kepos Capital Lp, with the investment firm holding over 0.37 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $6.16 million and represent 1.81% of shares outstanding.