Sinclair, Inc. (NASDAQ:SBGI) Shareholders to Collect $0.25 Quarterly Dividend

Key Points

• Sinclair declared a $0.25 quarterly dividend, payable December 15 to shareholders of record December 1. That equals $1.00 annualized and a 7.1% yield.
• The company’s latest quarter beat expectations, reporting EPS of $0.60 versus $0.27 forecast and revenue of $893 million, up 15.5% year over year.
• Dividend sustainability could be a concern: although the current payout ratio is 66.7%, analysts expect a loss per share next year, which could make the annual dividend difficult to cover.

Sinclair, Inc. (NASDAQ:SBGI - Get Free Report) announced a quarterly dividend on Wednesday, November 4th. Shareholders of record on Tuesday, December 1st will be given a dividend of $0.25 per share on Tuesday, December 15th. This represents a $1.00 annualized dividend and a dividend yield of 7.1%. The ex-dividend date of this dividend is Tuesday, December 1st.

Sinclair has a dividend payout ratio of 66.7% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Sinclair to earn ($1.15) per share next year, which means the company may not be able to cover its $1.00 annual dividend with an expected future payout ratio of -87.0%.

Sinclair Stock Performance

Shares of NASDAQ SBGI opened at $14.10 on Thursday. The firm's 50 day moving average price is $13.16 and its 200 day moving average price is $14.05. Sinclair has a 1 year low of $11.83 and a 1 year high of $17.88. The company has a debt-to-equity ratio of 13.28, a quick ratio of 1.94 and a current ratio of 1.94.

Sinclair (NASDAQ:SBGI - Get Free Report) last posted its quarterly earnings data on Wednesday, November 4th. The company reported $0.60 EPS for the quarter, beating analysts' consensus estimates of $0.27 by $0.33. The company had revenue of $893.00 million during the quarter, compared to the consensus estimate of $874.21 million. Sinclair had a net margin of 1.60% and a negative return on equity of 16.09%. The company's quarterly revenue was up 15.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.02) EPS. Equities analysts forecast that Sinclair will post 1.01 EPS for the current fiscal year.

Insider Buying and Selling

In related news, EVP David Gibber sold 29,246 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $13.74, for a total value of $401,840.04. Following the completion of the transaction, the executive vice president owned 184,244 shares of the company's stock, valued at approximately $2,531,512.56. This represents a 13.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 42.10% of the company's stock.

Institutional Investors Weigh In On Sinclair

Several hedge funds and other institutional investors have recently bought and sold shares of SBGI. Dimensional Fund Advisors LP grew its position in shares of Sinclair by 7.5% during the first quarter. Dimensional Fund Advisors LP now owns 1,622,794 shares of the company's stock worth $21,001,000 after buying an additional 113,788 shares in the last quarter. Capital Management Corp VA raised its holdings in Sinclair by 2.1% in the third quarter. Capital Management Corp VA now owns 1,437,884 shares of the company's stock valued at $18,247,000 after acquiring an additional 28,902 shares in the last quarter. Converium Capital Inc. raised its holdings in Sinclair by 15.8% in the first quarter. Converium Capital Inc. now owns 1,062,452 shares of the company's stock valued at $13,748,000 after acquiring an additional 144,674 shares in the last quarter. Pinnacle Associates Ltd. raised its holdings in Sinclair by 4.5% in the third quarter. Pinnacle Associates Ltd. now owns 774,890 shares of the company's stock valued at $9,833,000 after acquiring an additional 33,457 shares in the last quarter. Finally, Bank of America Corp DE boosted its stake in Sinclair by 82.6% during the 1st quarter. Bank of America Corp DE now owns 86,137 shares of the company's stock valued at $1,115,000 after acquiring an additional 38,962 shares during the last quarter. 41.71% of the stock is currently owned by hedge funds and other institutional investors.

Sinclair Company Profile

Sinclair, Inc is a diversified media company that owns and operates local television stations across the United States. Its broadcast portfolio includes ABC, CBS, FOX, NBC, and other network-affiliated stations, as well as independent stations. Sinclair's local media operations produce news, weather, sports, and community-focused programming for viewers in markets throughout the country.

The company also develops and distributes national and regional content through cable networks, digital platforms, and streaming services.

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