Handle With Care: Sinclair Broadcast Group Inc. (NASDAQ: SBGI)

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The Vanguard Group, Inc. recently announced the acquisition of new stake in Sinclair Broadcast Group Inc. (NASDAQ:SBGI). The institutional investor has increased its shareholding in the Communication Services company by 2.06% to 6.22 million shares with purchase of 0.13 million shares. This fresh investment now brings its stake to 11.23% valued currently at $114.84 million. In addition, Conifer Management LLC raised its holdings by 1.65 million to 4.15 million shares. And Goldman Sachs & Co. LLC (Private … has lifted its position by 1,268.18% or 3.74 million shares – to 4.03 million shares.

With over 1.47 million Sinclair Broadcast Group Inc. (SBGI) shares trading Friday and a closing price of $20.48 on the day, the dollar volume was approximately $30.12 million. The shares have shown a positive weekly performance of 4.22% and its price on 07/24/20 gained nearly 1.39%. Currently, there are 90.61M common shares owned by the public and among those 51.54M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 7 analysts who have offered their price forecasts for SBGI have a consensus price objective of $20.17. The analysts have set the share’s price value over the next 12 months at a high of $30.00 and a low of $13.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Sinclair Broadcast Group Inc. stock is 2.60 for the next 12 months. The average price target is 18.7% above its last price level and an upside to the estimated low will see the stock lose -57.54% over that period. But an upside of 31.73% will see the stock hit the forecast high price target while mean target price for the stock is $18.00.

Insiders at the company have transacted a total of 67 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 26 of these insider trades were purchases, accounting for 2,112,536 shares. Insider sales of the common stock occurred on 41 occasions, with total insider shares sold totaling 1,087,920 shares.

The top 3 mutual fund holders in Sinclair Broadcast Group Inc. are Vanguard Total Stock Market Index, Vanguard Small Cap Index Fund, and Government Pension Fund – Global. Vanguard Total Stock Market Index owns 1.52 million shares of the company’s stock, all valued at over $28.12 million. The company sold -0.3 million shares recently to bring their total holdings to about 2.75% of the shares outstanding. Vanguard Small Cap Index Fund sold -0.33 million shares to see its total holdings shrink to 1.32 million shares valued at over $24.35 million and representing 2.38% of the shares outstanding. Government Pension Fund – Global sold -0.13 million shares to bring its total holdings to over 1.3 million shares at a value of $24.02 million. Government Pension Fund – Global now owns shares totaling to 2.35% of the shares outstanding.

Shares of Sinclair Broadcast Group Inc. (NASDAQ: SBGI) opened at $20.80, up $0.6 from a prior closing price of $20.20. However, the script later closed the day at $20.48, up 1.39%. The company’s stock has a 5-day price change of 4.22% and 34.03% over the past three months. SBGI shares are trading -38.57% year to date (YTD), with the 12-month market performance down to -63.62% lower. It has a 12-month low price of $10.57 and touched a high of $57.35 over the same period. Currently, 1.47 million shares have been traded, compared to an average intraday trading volume of 1.72 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 10.91%, 8.22%, and -20.93% respectively.

Institutional ownership of Sinclair Broadcast Group Inc. (NASDAQ: SBGI) shares accounts for 92.79% of the company’s 90.61M shares outstanding. Mutual fund holders own 7.00%, while other institutional holders and individual stakeholders account for 69.09% and 33.08% respectively.

It has a market capitalization of $1.66B and a beta (3y monthly) value of 1.34. The stock’s trailing 12-month PE ratio is 12.66, while the earnings-per-share (ttm) stands at $1.62. The company has a PEG of 7.91 and a Quick Ratio of 3.70 with the debt-to-equity ratio at 9.12. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.41% over the week and 6.55% over the month.

Analysts forecast that Sinclair Broadcast Group Inc. (SBGI) will achieve an EPS of $4.77 for the current quarter, $1.27 for the next quarter and -$0.88 for 2021. The lowest estimate earnings-per-share for the quarter is $4.41 while analysts give the company a high EPS estimate of $5.04. Comparatively, EPS for the current quarter was $0.45 a year ago. Earnings per share for the fiscal year are expected to decrease by -84.80%, and -114.40% over the next financial year. EPS should grow at an annualized rate of 1.60% over the next five years, compared to -25.30% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 7 brokerage firm advisors rate Sinclair Broadcast Group Inc. (SBGI) as a “Moderate Buy” at a consensus score of 2.60. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 3 of the 7 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the SBGI, a number of firms have released research notes about the stock. Wolfe Research stated their Peer Perform rating for the stock in a research note on July 20, 2020, with the firm’s price target at . The Benchmark Company coverage for the Sinclair Broadcast Group Inc. (SBGI) stock in a research note released on June 24, 2020 offered a Buy rating with a price target of $30. Wells Fargo was of a view on May 04, 2020 that the stock is Underweight, while B. Riley FBR gave the stock Neutral rating on March 18, 2020, issuing a price target of $35- $22. JP Morgan on their part issued Neutral rating on December 13, 2019.

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