Sinclair (NASDAQ:SBGI) Trading Down 3.8% - Here's Why

Key Points

• Sinclair shares fell 3.8% to $12.67 on Tuesday with trading volume of 161,591 shares, about 62% below its average session volume.
• Analysts are mixed: the stock has an average rating of "Hold" (two Buys, two Holds, two Sells) and an average target price of $20, though Benchmark recently raised its target to $30.
• Results were mixed—Sinclair beat EPS estimates ($0.04 vs. -$0.03) but revenue fell 16.7% YoY and the company remains unprofitable, while it pays a 7.7% dividend yield amid notable insider selling.

Sinclair, Inc. (NASDAQ:SBGI - Get Free Report) shares fell 3.8% on Tuesday . The company traded as low as $12.46 and last traded at $12.6740. 161,591 shares were traded during mid-day trading, a decline of 62% from the average session volume of 424,949 shares. The stock had previously closed at $13.18.

Analysts Set New Price Targets

A number of equities analysts have issued reports on SBGI shares. Weiss Ratings cut Sinclair from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, March 2nd. Wall Street Zen upgraded Sinclair from a "sell" rating to a "hold" rating in a report on Sunday, February 22nd. Benchmark lifted their target price on Sinclair from $27.00 to $30.00 and gave the company a "buy" rating in a research report on Thursday, February 26th. Finally, Wells Fargo & Company upped their price target on Sinclair from $16.00 to $17.00 and gave the stock an "equal weight" rating in a research report on Thursday, February 26th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Sinclair presently has an average rating of "Hold" and an average target price of $20.00.

Sinclair Trading Down 2.0%

The company has a debt-to-equity ratio of 11.78, a current ratio of 2.42 and a quick ratio of 2.42. The business has a 50-day simple moving average of $14.45 and a two-hundred day simple moving average of $14.70. The stock has a market cap of $924.97 million, a price-to-earnings ratio of -7.68 and a beta of 0.94.

Sinclair (NASDAQ:SBGI - Get Free Report) last posted its earnings results on Wednesday, February 25th. The company reported $0.04 earnings per share for the quarter, topping analysts' consensus estimates of ($0.03) by $0.07. Sinclair had a negative return on equity of 64.27% and a negative net margin of 3.53%.The business had revenue of $836.00 million for the quarter, compared to analyst estimates of $840.25 million. During the same period in the previous year, the firm earned $2.61 EPS. The firm's revenue was down 16.7% compared to the same quarter last year. Equities analysts forecast that Sinclair, Inc. will post 4.24 EPS for the current fiscal year.

Sinclair Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Tuesday, March 10th were issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Tuesday, March 10th. This represents a $1.00 annualized dividend and a dividend yield of 7.7%. Sinclair's payout ratio is presently -59.52%.

Insider Transactions at Sinclair

In other news, COO Robert Weisbord sold 10,000 shares of the business's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $15.70, for a total transaction of $157,000.00. Following the completion of the sale, the chief operating officer owned 284,525 shares in the company, valued at $4,467,042.50. The trade was a 3.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Howard E. Friedman sold 14,713 shares of the company's stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $15.11, for a total value of $222,313.43. Following the completion of the transaction, the director directly owned 77,685 shares in the company, valued at $1,173,820.35. The trade was a 15.92% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 28,385 shares of company stock worth $430,611. 46.60% of the stock is owned by company insiders.

Institutional Trading of Sinclair

Hedge funds have recently added to or reduced their stakes in the company. Gamco Investors INC. ET AL grew its holdings in Sinclair by 7.7% in the 3rd quarter. Gamco Investors INC. ET AL now owns 4,242,962 shares of the company's stock valued at $64,069,000 after buying an additional 302,160 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Sinclair by 5.9% in the fourth quarter. Vanguard Group Inc. now owns 3,934,311 shares of the company's stock valued at $60,195,000 after acquiring an additional 220,623 shares during the period. Charles Schwab Investment Management Inc. grew its stake in shares of Sinclair by 23.8% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,946,274 shares of the company's stock valued at $29,778,000 after acquiring an additional 373,566 shares in the last quarter. Capital Management Corp VA grew its stake in shares of Sinclair by 6.2% in the third quarter. Capital Management Corp VA now owns 1,655,050 shares of the company's stock valued at $24,991,000 after acquiring an additional 97,226 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its position in Sinclair by 5.1% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,509,006 shares of the company's stock worth $23,089,000 after acquiring an additional 73,241 shares during the period. 41.71% of the stock is 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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