Sinclair Broadcast Group Inc. (NASDAQ: SBGI) stock jumped 5.96% on Friday to $23.30 against a previous-day closing price of $21.99. With 1.22 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.82 million shares. During the session, the Broadcasting company that operates in wider Communication Services sector, reached to the highest price of $23.64 whereas the lowest price it dropped to was $22.02. The 52-week range on SBGI shows that it touched its highest point at $33.62 and its lowest point at $18.89 during that stretch. It currently has a 1-year price target of $31.38. With its current market cap of 1.69 billion, SBGI has annualized dividend of $1.00 while the current yield stands at 4.29%. Beta for the stock currently stands at 1.35.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SBGI was up-trending over the past week, with a rise of 3.88%, but this was up by 11.86% over a month. Three-month performance dropped to -0.26% while six-month performance fell -15.37%. The stock lost -17.58% in the past year, while it has lost -11.84% so far this year. A look at the trailing 12-month EPS for SBGI yields 29.99 with Next year EPS estimates of 0.87. For the next quarter, that number is -0.29. This implies an EPS growth rate of 80.60% for this year and -97.72% for next year.
Float and Shares Shorts:
At present, 72.16 million SBGI shares are outstanding with a float of 42.50 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.34 million, which was 4.76% higher than short shares on Jun 14, 2022. In addition to Mr. David D. Smith as the firm’s Exec. Chairman, Mr. Christopher S. Ripley serves as its Pres & CEO.
Through their ownership of 79.16% of SBGI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 8.67% of SBGI, in contrast to 40.69% held by mutual funds. Shares owned by individuals account for 37.73%. As the largest shareholder in SBGI with 10.90% of the stake, The Vanguard Group, Inc. holds 5,116,894 shares worth 5,116,894. A second-largest stockholder of SBGI, HG Vora Capital Management LLC, holds 4,750,000 shares, controlling over 10.12% of the firm’s shares. Contrarius Investment Management is the third largest shareholder in SBGI, holding 4,229,467 shares or 9.01% stake. With a 7.22% stake in SBGI, the Contrarius ICAV – Global Equity F is the largest stakeholder. A total of 3,387,748 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.65% of SBGI stock, is the second-largest Mutual Fund holder. It holds 1,245,164 shares valued at 25.4 million. Vanguard Small Cap Index Fund holds 2.27% of the stake in SBGI, owning 1,066,047 shares worth 21.75 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SBGI since 8 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SBGI analysts setting a high price target of $41.00 and a low target of $22.00, the average target price over the next 12 months is $31.29. Based on these targets, SBGI could surge 75.97% to reach the target high and fall by -5.58% to reach the target low. Reaching the average price target will result in a growth of 34.29% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SBGI will report FY 2022 earnings on 02/22/2023. Analysts have provided yearly estimates in a range of $38.93 being high and $37.82 being low. For SBGI, this leads to a yearly average estimate of $38.22. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Sinclair Broadcast Group Inc. surprised analysts by -$0.17 when it reported -$0.17 EPS against a consensus estimate of -$0.00. The surprise factor in the prior quarter was $36.41. Based on analyst estimates, the high estimate for the next quarter is $0.75 and the low estimate is -$0.35. The average estimate for the next quarter is thus -$0.00.
Dividends & Yield:
In terms of dividends, SBGI has a current ratio of $1.0, which is $1.0 over the trailing 12-months, while a dividend of $0.78 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and SBGI currently yields $3.86. In the past year, SBGI’s dividend yield has been $3.86, but when looking at the stock over the past five years, its yield has been $2.77. Accordingly, SBGI has a current buyback yield of $7.88. This was $7.88 for the TTM, and it was $8.18 for the past five years.
Summary of Insider Activity:
Insiders traded SBGI stock several times over the past three months with 6 Buys and 0 Sells. In these transactions, 60,732 shares were bought while 0 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 22 over the past year. The total number of shares bought during that period was 415,593 while 209,038 shares were sold.