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David D. Smith, Executive Chairman of Sinclair, Inc. (NASDAQ:SBGI), recently made significant stock purchases, according to a recent SEC filing. On March 4 and 5, Smith acquired a total of 83,422 shares of Sinclair’s Class A Common Stock. These transactions amounted to approximately $1.16 million, with purchase prices ranging from $13.57 to $14.20 per share. The stock, currently trading at $14.46, offers a substantial 6.98% dividend yield and trades at a P/E ratio of 3.01. InvestingPro analysis indicates the stock is currently undervalued, with several positive indicators including strong financial health metrics.
Following these acquisitions, Smith now directly owns 728,986 shares of Class A Common Stock. Additionally, he holds substantial indirect interests, including shares in Class B Common Stock and various trusts and foundations associated with family members. With a market capitalization of $940 million and maintaining dividend payments for 16 consecutive years, Sinclair demonstrates consistent shareholder returns. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report for deeper analysis of SBGI’s financial position and future prospects.
In other recent news, Sinclair Broadcast Group reported its fourth-quarter 2024 earnings, revealing a strong performance despite challenges in core advertising. The company achieved an adjusted EBITDA of $330 million, surpassing its guidance by $5 million, and saw a 5% year-over-year increase in distribution revenue. However, core advertising revenue experienced a 9% decline. Looking ahead, Sinclair anticipates a 2-4% decline in media revenues for the first quarter of 2025, with core advertising expected to decrease by 3%, while distribution revenues are projected to grow by 4%. In terms of strategic moves, Sinclair has extended its debt maturity to 2029 following a refinancing process. Analysts from Benchmark maintained a Buy rating on Sinclair, highlighting the company’s potential for mergers and acquisitions and stock buybacks. The use of cash from Sinclair’s Ventures division for stock repurchases was noted as a strategic move likely to bolster investor confidence. Sinclair’s openness to significant mergers and acquisitions, whether as a buyer or seller, remains a point of interest for investors.
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