Sinclair (NASDAQ:SBGI) Shares Down 6.7% – Here’s Why

Sinclair, Inc. (NASDAQ:SBGI)’s stock price dropped 6.7% during mid-day trading on Monday . The company traded as low as $14.51 and last traded at $14.56. Approximately 174,436 shares changed hands during mid-day trading, a decline of 56% from the average daily volume of 392,582 shares. The stock had previously closed at $15.60.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Benchmark raised their price objective on shares of Sinclair from $27.00 to $30.00 and gave the stock a “buy” rating in a report on Thursday, February 26th. Wall Street Zen upgraded shares of Sinclair from a “sell” rating to a “hold” rating in a research note on Sunday, February 22nd. Wells Fargo & Company lifted their price target on Sinclair from $16.00 to $17.00 and gave the stock an “equal weight” rating in a research note on Thursday, February 26th. Zacks Research upgraded Sinclair from a “strong sell” rating to a “hold” rating in a research note on Thursday, November 13th. Finally, Guggenheim increased their target price on Sinclair from $19.00 to $20.00 and gave the stock a “buy” rating in a report on Thursday, November 13th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Sinclair currently has a consensus rating of “Hold” and a consensus target price of $20.00.

Sinclair Stock Performance

The stock’s 50-day moving average price is $14.90 and its 200-day moving average price is $14.76. The company has a current ratio of 2.42, a quick ratio of 2.42 and a debt-to-equity ratio of 11.78. The company has a market capitalization of $970.36 million, a P/E ratio of -8.30 and a beta of 0.94.

Sinclair (NASDAQ:SBGI) last released its quarterly earnings data on Wednesday, February 25th. The company reported $0.04 earnings per share for the quarter, topping the consensus estimate of ($0.03) by $0.07. Sinclair had a negative net margin of 3.53% and a negative return on equity of 64.27%. The firm had revenue of $836.00 million for the quarter, compared to analyst estimates of $840.25 million. During the same quarter in the prior year, the business earned $2.61 earnings per share. Sinclair’s quarterly revenue was down 16.7% on a year-over-year basis. As a group, equities analysts expect that Sinclair, Inc. will post 4.24 EPS for the current year.

Sinclair Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 24th. Investors of record on Tuesday, March 10th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Tuesday, March 10th. This represents a $1.00 annualized dividend and a dividend yield of 7.2%. Sinclair’s dividend payout ratio (DPR) is -59.52%.

Insider Activity at Sinclair

In other Sinclair news, Director Howard E. Friedman sold 14,713 shares of the firm’s stock in a transaction on Tuesday, January 6th. The stock was sold at an average price of $15.11, for a total value of $222,313.43. Following the sale, the director directly owned 77,685 shares in the company, valued at approximately $1,173,820.35. This trade represents a 15.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP David B. Gibber sold 29,376 shares of the company’s stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $16.67, for a total transaction of $489,697.92. Following the transaction, the executive vice president owned 165,272 shares of the company’s stock, valued at $2,755,084.24. This represents a 15.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 50,637 shares of company stock worth $815,535 in the last 90 days. 46.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Mackenzie Financial Corp bought a new stake in shares of Sinclair during the fourth quarter valued at approximately $174,000. Madison Avenue Partners LP bought a new stake in Sinclair during the 4th quarter valued at $13,918,000. Aristeia Capital L.L.C. raised its stake in Sinclair by 22.3% during the 4th quarter. Aristeia Capital L.L.C. now owns 32,864 shares of the company’s stock valued at $503,000 after acquiring an additional 5,988 shares in the last quarter. AQR Capital Management LLC boosted its position in Sinclair by 205.4% during the 4th quarter. AQR Capital Management LLC now owns 130,835 shares of the company’s stock worth $2,002,000 after acquiring an additional 87,988 shares during the period. Finally, Trexquant Investment LP bought a new position in shares of Sinclair in the fourth quarter worth $170,000. 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.