Sinclair (NASDAQ:SBGI) Reaches New 52-Week Low - Here's Why

Key Points

• Sinclair shares fell to a new 52-week low of $12.12, trading below both their 50-day and 200-day moving averages.
• Analyst sentiment has weakened, with downgrades from Weiss Ratings and Wall Street Zen; the stock carries a consensus “Hold” rating, despite an average price target of $19.40.
• Sinclair reported a significant quarterly earnings miss, posting a loss of $1.06 per share versus the expected loss of $0.24. Its $1.00 annual dividend offers an 8.1% yield, but the 133.33% payout ratio raises sustainability concerns.

Shares of Sinclair, Inc. (NASDAQ:SBGI - Get Free Report) hit a new 52-week low on Monday. The stock traded as low as $12.12 and last traded at $12.35, with a volume of 28,534 shares traded. The stock had previously closed at $12.39.

Analysts Set New Price Targets

A number of brokerages recently commented on SBGI. Weiss Ratings downgraded shares of Sinclair from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, October 8th. Zacks Research raised Sinclair from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 8th. JPMorgan Chase & Co. lifted their price target on Sinclair from $14.00 to $15.00 and gave the company an "underweight" rating in a report on Friday, August 21st. Finally, Wall Street Zen downgraded shares of Sinclair from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $19.40.

Sinclair Price Performance

The company has a quick ratio of 1.94, a current ratio of 1.94 and a debt-to-equity ratio of 13.28. The firm has a market capitalization of $897.35 million, a P/E ratio of 16.58 and a beta of 1.12. The stock has a fifty day moving average of $13.41 and a 200-day moving average of $14.01.

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

Sinclair Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 8.1%. The ex-dividend date of this dividend was Monday, August 31st. Sinclair's dividend payout ratio is presently 133.33%.

Insider Activity

In other Sinclair news, EVP David Gibber sold 29,246 shares of Sinclair stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $13.74, for a total value of $401,840.04. Following the transaction, the executive vice president owned 184,244 shares of the company's stock, valued at approximately $2,531,512.56. The trade was a 13.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 42.10% of the company's stock.

Institutional Investors Weigh In On Sinclair

A number of large investors have recently added to or reduced their stakes in the stock. GABELLI & Co INVESTMENT ADVISERS INC. boosted its holdings in shares of Sinclair by 3.6% in the 1st quarter. GABELLI & Co INVESTMENT ADVISERS INC. now owns 29,000 shares of the company's stock valued at $375,000 after buying an additional 1,000 shares in the last quarter. Waverly Advisors LLC lifted its stake in shares of Sinclair by 9.7% in the second quarter. Waverly Advisors LLC now owns 13,346 shares of the company's stock worth $190,000 after buying an additional 1,181 shares in the last quarter. Farther Finance Advisors LLC raised its stake in Sinclair by 2,823.1% during the third quarter. Farther Finance Advisors LLC now owns 2,280 shares of the company's stock worth $29,000 after purchasing an additional 2,202 shares during the period. Inceptionr LLC raised its stake in shares of Sinclair by 46.3% in the 1st quarter. Inceptionr LLC now owns 17,025 shares of the company's stock valued at $220,000 after acquiring an additional 5,385 shares during the period. Finally, Public Employees Retirement System of Ohio purchased a new position in shares of Sinclair in the second quarter valued at approximately $100,000. Institutional investors and hedge funds own 41.71% of the company's stock.

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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