Sinclair (NASDAQ:SBGI) Trading Up 6.3% - Here's What Happened

Key Points

• Sinclair shares rose 6.3% in midday trading, reaching as high as $14.75 after closing at $13.81 the previous day. Trading volume was lighter than usual, with about 107,792 shares changing hands.
• Analyst sentiment was mixed but generally cautious. Recent rating changes included upgrades from Weiss Ratings and Wall Street Zen, while Wells Fargo and JPMorgan lowered price targets; MarketBeat’s average rating for Sinclair remains Hold with a $19.20 average price target.
• The company remains attractive for income investors after paying a quarterly dividend of $0.25 per share, equal to a 6.8% annualized yield. However, the payout ratio is high at 111.11%, which may raise sustainability concerns.

Sinclair, Inc. (NASDAQ:SBGI - Get Free Report) shares were up 6.3% during mid-day trading on Wednesday . The stock traded as high as $14.75 and last traded at $14.6750. Approximately 107,792 shares changed hands during trading, a decline of 77% from the average session volume of 463,505 shares. The stock had previously closed at $13.81.

Wall Street Analyst Weigh In

SBGI has been the subject of several research reports. Weiss Ratings raised Sinclair from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, June 30th. Wall Street Zen upgraded shares of Sinclair from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Wells Fargo & Company cut their price objective on shares of Sinclair from $17.00 to $16.00 and set an "equal weight" rating for the company in a research report on Friday, May 1st. JPMorgan Chase & Co. lowered their target price on shares of Sinclair from $15.00 to $14.00 and set an "underweight" rating on the stock in a report on Wednesday, April 1st. Finally, Guggenheim dropped their price target on shares of Sinclair from $20.00 to $19.00 and set a "buy" rating on the stock in a research note on Tuesday, May 5th. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $19.20.

Sinclair Trading Up 6.0%

The business has a 50 day moving average of $14.08 and a 200-day moving average of $14.49. The stock has a market cap of $1.06 billion, a PE ratio of 16.25 and a beta of 1.04. The company has a current ratio of 2.42, a quick ratio of 2.42 and a debt-to-equity ratio of 11.10.

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 business had revenue of $807.00 million for the quarter, compared to analysts' expectations 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 was up 4.0% on a year-over-year basis. During the same quarter last year, the firm earned ($2.30) earnings per share. On average, analysts anticipate that Sinclair, Inc. will post 1.68 EPS for the current year.

Sinclair Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 9th. Investors of record on Tuesday, May 26th were issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 6.8%. The ex-dividend date of this dividend was Tuesday, May 26th. Sinclair's payout ratio is currently 111.11%.

Insider Buying and Selling at Sinclair

In other news, Director Daniel C. Keith sold 17,000 shares of the stock in a transaction that occurred 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 directly owned 25,122 shares in the company, valued at approximately $377,332.44. This represents a 40.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 42.10% of the company's stock.

Institutional Investors Weigh In On Sinclair

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SBGI. Geneos Wealth Management Inc. grew its position in Sinclair by 142.0% in the second quarter. Geneos Wealth Management Inc. now owns 1,815 shares of the company's stock worth $25,000 after buying an additional 1,065 shares during the last quarter. Hilton Head Capital Partners LLC purchased a new stake in shares of Sinclair in the 4th quarter valued at approximately $32,000. Tower Research Capital LLC TRC lifted its holdings in shares of Sinclair by 175.6% in the second quarter. Tower Research Capital LLC TRC now owns 2,954 shares of the company's stock valued at $41,000 after purchasing an additional 1,882 shares in the last quarter. Aquatic Capital Management LLC acquired a new stake in shares of Sinclair in the third quarter worth $48,000. Finally, Raymond James Financial Inc. purchased a new position in shares of Sinclair during the second quarter valued at $54,000. Institutional investors own 41.71% of the company's stock.

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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