Sinclair’s executive chairman David D. Smith acquires $538k in shares

Published 05/03/2025, 02:30
Sinclair’s executive chairman David D. Smith acquires $538k in shares

David D. Smith, Executive Chairman of Sinclair, Inc. (NASDAQ:SBGI), has increased his stake in the company by purchasing 38,410 shares of Class A Common Stock. The acquisition, which took place on March 3, 2025, was executed at an average price of $14.0131 per share, within a price range of $13.92 to $14.12. This transaction amounts to a total value of approximately $538,243. The purchase comes as Sinclair trades at an attractive P/E ratio of 2.9x and offers a substantial 7.37% dividend yield. According to InvestingPro analysis, the stock appears undervalued at current levels.

Following this purchase, Smith directly owns 645,564 shares of Class A Common Stock. Additionally, he holds significant shares indirectly and through various trusts and custodial accounts, including Class B Common Stock and shares held for the benefit of family members and charitable foundations. Despite a 15.99% year-to-date price decline, InvestingPro data shows Sinclair maintains strong financial health with liquid assets exceeding short-term obligations. Discover more insights and 8 additional ProTips with an InvestingPro subscription, including detailed analysis in the comprehensive Pro Research Report.

In other recent news, Sinclair Broadcast Group reported its fourth-quarter 2024 earnings, highlighting a notable increase in distribution revenue by 5% year-over-year, despite a 9% decline in core advertising revenue. The company exceeded its guidance on adjusted EBITDA by $5 million, achieving $330 million. Sinclair’s management expressed optimism about potential FCC (BME:FCC) deregulation and projected a 2-4% decline in media revenues for Q1 2025, with core advertising expected to decrease by 3% but distribution revenues projected to grow by 4%. Benchmark analysts maintained a Buy rating for Sinclair with a price target of $30, emphasizing the company’s strategic use of cash from its Ventures division for potential stock repurchases. Sinclair also suggested the possibility of engaging in significant mergers and acquisitions, either as a buyer or a seller, which has caught the attention of investors and analysts. The company’s recent refinancing extended its significant debt maturity to 2029, providing a stable financial outlook. Sinclair’s management continues to focus on leveraging its scale and technology leadership, with plans to explore shareholder returns from venture cash. These developments underscore Sinclair’s strategic priorities and focus on growth opportunities.

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