What Happened?
Shares of travel technology company Sabre (NASDAQ: SABR) fell 15.1% in the morning session after Bernstein downgraded the stock to Market Perform from Outperform due to concerns over its high debt levels.
The downgrade was driven by the investment firm's projection that Sabre's leverage would remain elevated for an extended period. Bernstein noted that the company's net debt was expected to stay above five times its earnings before interest, taxes, depreciation, and amortization (EBITDA) until the 2030s. This long-term forecast for a heavy debt load likely sparked worries among investors about the company's financial health and future prospects.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Sabre? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Sabre’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. But moves this big are rare even for Sabre and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 33.8% on the news that the company's Board of Directors announced the adoption of a limited-duration shareholder rights plan.
This defensive measure was a response to the substantial accumulation of Sabre's stock by Constellation Software Inc. Between April and November 2025, Constellation built a 9.7% position in the company. Following this, Constellation requested two board seats and entered into discussions with Sabre. However, negotiations were abruptly halted by Constellation on February 26, 2026. The rights plan was designed to protect the interests of Sabre and its shareholders and ensure they received fair treatment in any potential takeover attempt. The move makes it more difficult for an outside entity to gain control without the board's approval.
Sabre is up 23.7% since the beginning of the year, but at $1.65 per share, it is still trading 60.5% below its 52-week high of $4.16 from March 2025. Investors who bought $1,000 worth of Sabre’s shares 5 years ago would now be looking at an investment worth $109.30.
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