Sinclair Broadcast Group, Inc. (SBGI) : What’s the Story?

Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) is an interesting player in the Services space, with a focus on Broadcasting – TV. The stock has been active on the tape, currently trading at $32.30, up from yesterday’s close by -2.42%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Sinclair Broadcast Group, Inc. (SBGI) currently trades with a market capitalization of $2.93B. That value represents a market adjusting for revenues that have been growing by 26.50% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For SBGI, the company currently has $104.54M of cash on the books, which is offset by $4.21B current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $358.19M over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of 1.36 on a per share basis this quarter. Perhaps, that suggests something about why 100.80% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Sinclair Broadcast Group, Inc. recorded a 52-week high of 34.85. It is now trading 1.75 off that level. The stock is trading 33.04 its 50-day moving average by -0.060000000000002. The stock carved out a 52-week low down at 24.15.

In recent action, Sinclair Broadcast Group, Inc. (SBGI) has made a move of +1.25% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 10.82, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 63.44M with 9.91% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of SBGI.

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