Sinclair (NASDAQ:SBGI) Reaches New 12-Month Low - What's Next?

Key Points

• Sinclair shares hit a new 52-week low, trading as low as $12.43 and below both their 50-day and 200-day moving averages.
• Analyst sentiment is neutral: Sinclair has an average “Hold” rating and an average price target of $19.40, though recent ratings included downgrades and upgrades.
• The company missed quarterly EPS expectations by a wide margin despite 7.1% year-over-year revenue growth, while maintaining a $1.00 annualized dividend yielding about 8%; its 133.33% payout ratio raises sustainability concerns.

Sinclair, Inc. (NASDAQ:SBGI - Get Free Report) reached a new 52-week low during trading on Thursday. The stock traded as low as $12.43 and last traded at $12.3950, with a volume of 43183 shares changing hands. The stock had previously closed at $12.69.

Analyst Ratings Changes

Several equities research analysts recently weighed in on SBGI shares. Wall Street Zen lowered shares of Sinclair from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Zacks Research upgraded Sinclair from a "strong sell" rating to a "hold" rating in a research note on Tuesday, September 8th. JPMorgan Chase & Co. upped their target price on Sinclair from $14.00 to $15.00 and gave the company an "underweight" rating in a report on Friday, August 21st. Finally, Weiss Ratings raised Sinclair from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, August 25th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Sinclair presently has an average rating of "Hold" and an average price target of $19.40.

Sinclair Stock Performance

The stock has a fifty day moving average price of $13.84 and a two-hundred day moving average price of $14.09. The company has a market cap of $899.37 million, a P/E ratio of 16.59 and a beta of 1.05. The company has a debt-to-equity ratio of 13.28, a current ratio of 1.94 and a quick ratio of 1.94.

Sinclair (NASDAQ:SBGI - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($1.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.24) by ($0.82). Sinclair had a negative return on equity of 16.09% and a net margin of 1.60%.The business had revenue of $840.00 million for the quarter, compared to analyst estimates of $838.99 million. During the same quarter in the prior year, the firm posted ($0.91) earnings per share. The business's quarterly revenue was up 7.1% on a year-over-year basis. On average, equities analysts forecast that Sinclair, Inc. will post 1.01 earnings per share for the current fiscal year.

Sinclair Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 8.0%. The ex-dividend date was Monday, August 31st. Sinclair's payout ratio is 133.33%.

Insider Activity

In other news, EVP David Gibber sold 29,246 shares of the stock in a transaction on 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 transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders own 42.10% of the company's stock.

Institutional Investors Weigh In On Sinclair

Institutional investors have recently bought and sold shares of the stock. Dimensional Fund Advisors LP increased its stake in Sinclair by 7.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,622,794 shares of the company's stock valued at $21,001,000 after buying an additional 113,788 shares during the period. Converium Capital Inc. lifted its stake in shares of Sinclair by 15.8% in the 1st quarter. Converium Capital Inc. now owns 1,062,452 shares of the company's stock worth $13,748,000 after acquiring an additional 144,674 shares during the period. Madison Avenue Partners LP bought a new position in shares of Sinclair in the fourth quarter valued at approximately $13,918,000. Bank of America Corp DE boosted its holdings in shares of Sinclair by 82.6% in the first 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 in the last quarter. Finally, GABELLI & Co INVESTMENT ADVISERS INC. increased its stake in shares of Sinclair by 3.6% during the first quarter. GABELLI & Co INVESTMENT ADVISERS INC. now owns 29,000 shares of the company's stock valued at $375,000 after acquiring an additional 1,000 shares during the period. Institutional investors and hedge funds own 41.71% of the company's stock.

About Sinclair

Sinclair, Inc NASDAQ: SBGI is a diversified media company focused primarily on local television broadcasting in the United States. Through its television stations, the company provides local news, weather, sports, entertainment and syndicated programming to audiences in markets across the country.

Sinclair also develops and distributes content through national and regional networks, digital platforms and streaming services. Its portfolio has included sports-focused programming, news and information services, and digital products designed to extend the reach of its broadcast content across connected televisions, websites and mobile devices.

The company was founded in 1986 by David D.

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