Daily Stock Analysis: Sinclair Inc.

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Sinclair Inc. (SBGI) is the second-largest television station operator in the U.S., with 185 stations in 85 markets. Of the firm's roughly 600 channels, over 150 are affiliated with the four national broadcasters—Fox, ABC, CBS, and NBC—with over 80 other channels on networks aligned with The CW (Nexstar) and MyNetworkTV (Fox).

The firm also owns the Tennis Channel and four multicast networks. Via the 2019 purchase of Fox Sports Networks from Disney, Sinclair is now the largest owner of Diamond Sports, which operates regional sports networks with 19 Bally’s-branded RSNs covering 42 NBA, MLB, and NHL teams along with Marquee Sports Network, the home of the Chicago Cubs.

Sinclair, Inc. was founded in 1986 and is headquartered in Hunt Valley, Maryland.

Three key data points gauge Sinclair, or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

SBGI Price

Over the past year, Sinclair’s share price dropped about 20.1% from $20.79 to $13.62 as of Tuesday’s market close.

If SBGI stock trades in the range of $10.00 to $20.00 this next year, its recent $13.62 share price might rise to $16.00 by next year. Of course, SBGI price could drop about the same $2.38 amount or more.

My upside estimate of $2.38, however, is $2.45 below the median of 1-year target prices set by 8 analysts tracking the stock for brokers.
 

SBGI Dividend

Sinclair’s most recent $0.25 quarterly dividend, paid June 15th to shareholders of record May 26th, equates to $1.00 annually and throws a yield of 7.34% as of Tuesday’s closing price.
 

SBGI Returns

Adding the $1.00 anticipated annual dividend to SBGI’s estimated $2.38 price upside reveals a $3.38 potential gross gain per share for the coming year.

At Tuesday’s $13.62 closing price, a little under $1000 would buy 73 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.14 per share.

Subtracting that maybe $0.14 brokerage cost from my estimated $3.38 gross gain per share makes a net gain amounting to $3.24 X 73 shares = $236.52 for about a 23.7% net gain.

This may be the time to pounce on Sinclair Inc. But beware, its dividend is secure and its price has been falling, and is lately priced at $26.26 below the stock’s all-time high of $66.57 posted back on June 28th, 2019.

The foregoing article is based on past history of Sinclair Inc. The only accurate measure of future performance is from active investment in the company.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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