Sinclair (NASDAQ:SBGI) Stock Jumps 6.2% - What's Next?

Key Points

• Sinclair shares gained 6.2% to about $15.12, with trading volume 75% above its average.
• Quarterly results beat expectations: EPS was $0.60 versus $0.27 forecast, while revenue rose 15.5% year over year to $893 million.
• Analysts’ consensus rating is Hold with a $19.40 price target. Sinclair declared a $0.25 quarterly dividend, equivalent to a 6.6% yield at the reported share price.

Shares of Sinclair, Inc. (NASDAQ:SBGI - Get Free Report) rose 6.2% on Tuesday. The stock traded as high as $15.08 and last traded at $15.1190. Approximately 868,176 shares were traded during trading, an increase of 75% from the average daily volume of 496,553 shares. The stock had previously closed at $14.23.

Analyst Upgrades and Downgrades

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

Sinclair Stock 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 company has a 50 day simple moving average of $13.15 and a 200-day simple moving average of $14.03. The stock has a market capitalization of $1.10 billion, a price-to-earnings ratio of 11.04 and a beta of 1.24.

Sinclair (NASDAQ:SBGI - Get Free Report) last released its quarterly earnings data on Wednesday, November 4th. The company reported $0.60 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.27 by $0.33. Sinclair had a net margin of 2.84% and a negative return on equity of 3.94%. The company had revenue of $893.00 million for the quarter, compared to analysts' expectations of $874.21 million. During the same quarter in the prior year, the firm earned ($0.02) EPS. The business's revenue was up 15.5% on a year-over-year basis. As a group, equities research analysts expect that Sinclair, Inc. will post 1.01 EPS for the current fiscal year.

Sinclair Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be given a $0.25 dividend. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $1.00 annualized dividend and a yield of 6.6%. Sinclair's dividend payout ratio (DPR) is presently 72.99%.

Institutional Trading of Sinclair

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP grew its holdings in 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 lifted its holdings in Sinclair by 2.1% during the third quarter. Capital Management Corp VA now owns 1,437,884 shares of the company's stock worth $18,247,000 after acquiring an additional 28,902 shares during the period. Converium Capital Inc. increased its position in shares of Sinclair by 15.8% during the 1st quarter. Converium Capital Inc. now owns 1,062,452 shares of the company's stock valued at $13,748,000 after purchasing an additional 144,674 shares during the last quarter. Pinnacle Associates Ltd. grew its position in shares of Sinclair by 4.5% during the 3rd 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 during the period. Finally, Russell Investments Group Ltd. increased its position in Sinclair by 216.2% in the third quarter. Russell Investments Group Ltd. now owns 104,042 shares of the company's stock worth $1,320,000 after buying an additional 71,134 shares during the last quarter. 41.71% of the stock is owned by institutional investors.

About Sinclair

Sinclair, Inc., formerly known as Sinclair Broadcast Group, is a U.S. media company focused on local television broadcasting. Its stations provide local news, sports and entertainment programming, often alongside content from major television networks. The company also operates national television brands, including Tennis Channel and the multicast networks Comet, Charge! and TBD. Its businesses include producing and distributing programming and selling advertising across its television and digital platforms.

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