Sinclair executive chairman David D. Smith acquires $1.49 million in stock

David D. Smith, the Executive Chairman of Sinclair, Inc. (NASDAQ:SBGI), has made significant purchases of the company’s Class A Common Stock, as disclosed in a recent SEC filing. On March 10th and 11th, Smith acquired a total of 107,027 shares, amounting to approximately $1.49 million. The purchase prices ranged from $13.9359 to $13.9615 per share. The stock, currently trading at $14.47, appears undervalued according to InvestingPro analysis, with a P/E ratio of just 3.03.

Following these transactions, Smith’s direct ownership of Sinclair’s Class A Common Stock increased to 858,765 shares. In addition to his direct holdings, Smith also possesses substantial indirect holdings, including shares held in trusts and custodial accounts for family members, as well as shares controlled through a family foundation and a limited liability company. The company maintains a notable 6.98% dividend yield and has consistently paid dividends for 16 consecutive years.

These acquisitions reflect Smith’s continued investment in Sinclair, a prominent player in the television broadcasting sector with a market capitalization of $948 million. InvestingPro subscribers can access detailed analysis and 8 additional key insights about Sinclair’s financial health and future prospects.

In other recent news, Sinclair Broadcasting reported its fourth-quarter 2024 earnings, revealing growth in distribution revenue and adjusted EBITDA that exceeded guidance. Despite a 9% decline in core advertising revenue, Sinclair’s adjusted EBITDA reached $330 million, surpassing expectations by $5 million. For the first quarter of 2025, Sinclair projects revenues between $765 million and $779 million, with EBITDA estimates ranging from $90 million to $102 million. Guggenheim has maintained its Buy rating on Sinclair, though it lowered the price target from $19 to $17, reflecting a cautious outlook on near-term revenue prospects due to weaker core advertising trends and minimal political advertising revenue in 2025.

Meanwhile, Benchmark analysts have also maintained a Buy rating for Sinclair with a consistent price target of $30, highlighting the company’s potential in mergers and acquisitions and its strategic use of cash for stock repurchases. Sinclair’s refinancing efforts have extended its next significant debt maturity to 2029, which Benchmark sees as a positive move. The company’s openness to significant mergers and acquisitions, either as a buyer or seller, presents dynamic future prospects, according to Benchmark analysts.

Additionally, Sinclair’s management has expressed optimism about potential FCC (BME:FCC) deregulation, which could positively impact the company’s operations. The company has suggested that it might use cash from its Ventures division for stock buybacks, which analysts believe could bolster investor confidence. These developments are being closely monitored by investors as Sinclair continues to navigate industry challenges and opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.