SBGI

Sinclair Inc($SBGI) Officer Buys $5.2 Million in Stock Over 10 Days Amid 22% Revenue Growth and 5.97% Dividend Yield

03/23/2025 09:41

Over the past 10 trading days, a senior officer at Sinclair Inc has made an astonishing series of insider purchases, investing over $5.2 million to acquire more than 365,000 shares of the company's stock. According to SEC filings, Sinclair officer David D. Smith purchased a total of 365,051 shares at an average price of $14.34 between March 3 and March 20, 2025. What's particularly noteworthy is that he continued buying even as the share price increased. His first purchase was 38,410 shares at $14.01 on March 3, and his final purchase was 4,616 shares at $16.44 on March 20. Such substantial insider buying typically signals strong confidence from management in their company's stock. Smith already holds a significant stake in Sinclair, with filings showing he directly owns approximately 2.9 million shares of Class B Common Stock and nearly 600,000 shares of Class A Common Stock, plus indirect ownership of 4 million shares of Class B Common Stock and substantial Class A holdings through family trusts. Sinclair Inc is a major broadcasting group in the United States, operating through two segments: Local Media (primarily broadcast television stations) and Tennis (Tennis Channel and related properties). The company has been showing strong growth in terms of revenue and profitability. According to its Q4 and full-year 2024 results announced on February 26, 2025, the company recorded total revenue of $1.004 billion for the fourth quarter, representing a 22% increase year-over-year. Adjusted earnings per share came in at $2.61, a dramatic improvement from $-5.35 in the same quarter of the previous year. For the full year 2024, total revenue increased by 13% to $3.548 billion, with advertising revenue up 25% to $1.611 billion. $SBGI stock has shown strong momentum in recent months. From trading around $10.87 in June 2024, the stock climbed to over $17 by mid-October 2024, and has maintained an overall upward trend despite some volatility since then. Interestingly, Smith's purchases began in early March when the stock had pulled back to the $13-14 range, and continued as the price rebounded to the $16-17 level. Media industry experts note that Sinclair's strong 2024 performance was partly driven by increased political advertising revenue. As JP Morgan and BofA mentioned regarding Fox Corp, political advertising is a significant revenue stream for broadcast media companies, and this would apply similarly to other broadcasting groups like Sinclair. Another notable development was that in November 2024, Diamond Sports Group, which has connections to Sinclair, received court approval for a bankruptcy restructuring. This restructuring reduced Diamond's debt from nearly $9 billion to $200 million, with plans to rebrand its channels as FanDuel Sports Network and partner with Amazon for streaming games online. Another attractive element for investors is Sinclair's dividend yield. The company currently pays an annual dividend of $1.00, providing a yield of 5.97%. This, combined with a low P/E ratio of 3.50, suggests the stock may still be undervalued. Smith's buying pattern is particularly interesting. After purchasing about 212,000 shares in the first week, he added approximately 82,500 more shares on March 11-12. Most recently, he bought another 70,800 shares between March 18-20, even as the price had moved up to the $15-16 range. This graduated but persistent buying suggests management sees long-term value even at current price levels. Insider trading experts point out that the scale of Smith's purchases is especially impressive. Investing over $5.2 million in company stock over 10 trading days is uncommon for a company of this size. Moreover, the fact that these purchases came shortly after the company's strong earnings announcement suggests Smith has confidence in the company's growth trajectory. Additionally, Sinclair is investing in NextGen Broadcasting (ATSC 3.0) technology and focusing on four strategic growth pillars to diversify and grow its business. These long-term investments demonstrate the company's efforts to maintain competitiveness in the changing media landscape. Overall, Smith's substantial insider buying can be interpreted as a strong signal of management's confidence in Sinclair's long-term outlook. Given the company's strong financial performance, high dividend yield, potential undervaluation, and strategic growth initiatives, investors may want to take note of this media company's future potential.

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