Sinclair, Inc. (NASDAQ:SBGI) Receives Average Rating of "Hold" from Analysts

Key Points

• Sinclair, Inc. has a consensus analyst rating of “Hold” from six covering firms, with an average price target of $19.20.
• The company reported better-than-expected quarterly results, posting EPS of $0.28 versus an expected loss and revenue of $807 million, up 4% year over year.
• Sinclair also declared a quarterly dividend of $0.25, equal to a 7.0% annualized yield, though the payout ratio is high at 111.11%.

Shares of Sinclair, Inc. (NASDAQ:SBGI - Get Free Report) have received a consensus recommendation of "Hold" from the six research firms that are currently covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $19.20.

A number of analysts recently commented on SBGI shares. Wall Street Zen upgraded Sinclair from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Weiss Ratings upgraded Sinclair from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, June 30th. JPMorgan Chase & Co. decreased their target price on Sinclair from $15.00 to $14.00 and set an "underweight" rating for the company in a research report on Wednesday, April 1st. Wells Fargo & Company cut their price target on shares of Sinclair from $17.00 to $16.00 and set an "equal weight" rating on the stock in a research report on Friday, May 1st. Finally, Deutsche Bank Aktiengesellschaft set a $17.00 price objective on shares of Sinclair in a research note on Wednesday, April 15th.

Sinclair Price Performance

Shares of SBGI traded down $0.30 during mid-day trading on Friday, hitting $14.24. 622,754 shares of the company traded hands, compared to its average volume of 581,406. The company has a current ratio of 2.42, a quick ratio of 2.42 and a debt-to-equity ratio of 11.10. The stock has a market capitalization of $1.03 billion, a price-to-earnings ratio of 15.82 and a beta of 1.04. The business has a 50-day moving average of $14.13 and a 200 day moving average of $14.51. Sinclair has a one year low of $11.89 and a one year high of $17.88.

Sinclair (NASDAQ:SBGI - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.68) by $0.96. The firm had revenue of $807.00 million for the quarter, compared to the consensus estimate of $792.63 million. Sinclair had a negative return on equity of 12.62% and a net margin of 2.00%.The business's revenue for the quarter was up 4.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($2.30) EPS. As a group, equities analysts expect that Sinclair will post 1.68 earnings per share for the current fiscal year.

Sinclair Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 9th. Stockholders of record on Tuesday, May 26th were issued a $0.25 dividend. The ex-dividend date of this dividend was Tuesday, May 26th. This represents a $1.00 annualized dividend and a dividend yield of 7.0%. Sinclair's payout ratio is 111.11%.

Insider Activity at Sinclair

In related news, Director Daniel C. Keith sold 17,000 shares of the firm's stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $15.02, for a total transaction of $255,340.00. Following the sale, the director owned 25,122 shares of the company's stock, valued at approximately $377,332.44. This trade represents a 40.36% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 42.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Sinclair

Several institutional investors and hedge funds have recently modified their holdings of SBGI. Geneos Wealth Management Inc. lifted its stake in Sinclair by 142.0% in the second quarter. Geneos Wealth Management Inc. now owns 1,815 shares of the company's stock valued at $25,000 after buying an additional 1,065 shares in the last quarter. Hilton Head Capital Partners LLC bought a new stake in shares of Sinclair during the fourth quarter worth $32,000. Tower Research Capital LLC TRC raised its holdings in shares of Sinclair by 175.6% during the second quarter. Tower Research Capital LLC TRC now owns 2,954 shares of the company's stock worth $41,000 after acquiring an additional 1,882 shares during the period. Aquatic Capital Management LLC acquired a new stake in shares of Sinclair during the third quarter worth $48,000. Finally, Raymond James Financial Inc. bought a new stake in Sinclair in the 2nd quarter valued at $54,000. 41.71% of the stock is currently owned by institutional investors and hedge funds.

About Sinclair

Sinclair Broadcast Group, Inc NASDAQ: SBGI is a media and entertainment company headquartered in Hunt Valley, Maryland. Founded in 1971 as a single UHF television station operator, Sinclair has grown through strategic acquisitions and organic expansion to become one of the largest owners of local television stations in the United States. Over its history, the company has pursued a diversified portfolio that includes both traditional broadcast assets and newer digital platforms.

At its core, Sinclair operates over 190 television stations affiliated with the major national broadcast networks, including ABC, CBS, NBC, Fox, The CW and MyNetworkTV.

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