Sinclair’s executive chairman David Smith buys $599,656 in stock

Published 14/03/2025, 22:16
Sinclair’s executive chairman David Smith buys $599,656 in stock

David D. Smith, the Executive Chairman of Sinclair, Inc. (NASDAQ:SBGI), has made a significant purchase of the company’s shares. According to a recent SEC filing, Smith acquired 42,595 shares of Sinclair’s Class A Common Stock on March 12, with a total transaction value of approximately $599,656. The shares were bought at a weighted average price of $14.0781, within a price range of $13.95 to $14.20. The purchase comes as InvestingPro data shows Sinclair trading at an attractive P/E ratio of 3.16 while offering a substantial 6.95% dividend yield.

Following this transaction, Smith now directly owns 901,360 shares of Sinclair’s Class A Common Stock. In addition to his direct holdings, Smith has substantial indirect ownership through various family trusts and entities, including Class B Common Stock and shares held in a 401(k) unitized stock fund. The transaction underscores Smith’s ongoing commitment to the company he leads as Executive Chairman. According to InvestingPro analysis, Sinclair maintains strong financial health with a current ratio of 2.45 and has consistently paid dividends for 16 consecutive years. For deeper insights into Sinclair’s valuation and prospects, including additional ProTips and comprehensive financial metrics, explore the detailed Pro Research Report available on InvestingPro.

In other recent news, Sinclair Broadcasting reported its fourth-quarter 2024 earnings, highlighting 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 declined by 9% during the same period. Looking ahead, Sinclair projects first-quarter 2025 revenues between $765 million and $779 million, with EBITDA estimates ranging from $90 million to $102 million.

Guggenheim Securities has adjusted its outlook on Sinclair Broadcasting, lowering the price target to $17 from $19, while maintaining a Buy rating. This revision takes into account Sinclair’s recent financial performance and future projections. Analysts at Guggenheim noted a weaker core advertising trend and minimal political advertising revenue due to 2025 being a non-election year. Despite these challenges, Guggenheim forecasts an average annual free cash flow of $347 million for Sinclair’s 2024/25 cycle.

Benchmark analysts continue to hold a Buy rating for Sinclair Broadcasting, keeping the price target steady at $30. They emphasized Sinclair’s potential for mergers and acquisitions and the strategic use of cash from its Ventures division for stock repurchases. The company has also extended its next significant debt maturity to 2029 through a recent refinancing process. These developments indicate Sinclair’s focus on strategic growth and financial stability in the coming years.

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