Three Insiders at Sabre Corp Just Bought Stock

If multiple insiders at the same organization are purchasing a company’s stock simultaneously, investors should take note. This insider buying pattern – which is called ‘cluster buying’ – can be a strong indication that a stock is undervalued. 

In this report, we are going to highlight a cluster buying pattern at Sabre Corp (SABR:US). Sabre is a software company that provides solutions to the travel industry. Its customers include airlines, hoteliers, agencies, and other travel-related businesses. It’s listed on the Nasdaq and currently has a market cap of $1.8 billion.

Cluster Buying Pattern

Our data shows that between August 8 and August 9, three insiders at Sabre purchased stock. Those who bought shares were:

●     President/CEO Kurt Ekert (100,000 shares @ $5.34 per share)

●     CFO Mike Randolfi (50,000 shares @ $5.38 per share)

●     Chief Legal Officer Ann Bruder (25,000 shares @ $5.33 per share)

Combined, the three insiders invested around $935,000 in the company.

Top-Level Insiders

There are two main things that stand out here.

The first thing to bring to your sight is that only the top-level insiders have placed their bets. The CEO, CFO, and Chief Legal Officer are all likely to have deep insights into the company’s operations and prospects.

Another thing that stands out is that the insiders have all made substantial purchases. The trade from CEO Kurt Ekert – worth $534,000 – is particularly notable.

Strong Q2

Sabre recently posted strong Q2 results that exceeded prior guidance.

For the quarter, revenue came in at $738 million, up 12% year on year. Adjusted operating income was $46 million compared to an adjusted operating loss of $9 million in the second quarter of 2022.

Looking ahead, the company raised its guidance for both full-year revenue and adjusted EBITDA. And it noted that it is on track to deliver cost savings of $100 million in the second half of 2023 and $200 million in 2024.

"Sabre delivered solid quarterly results that exceeded expectations. We are seeing positive momentum across many areas of the business, including the growth strategies we outlined last quarter. I am confident that Sabre is on a durable path to deliver its 2023 financial guidance and 2025 targets. We remain laser-focused on continuing to deliver on our priorities,” commented Mr. Ekert.

In light of these results, we see the insider buying here as a bullish development.