Sinclair Broadcast Group [NASDAQ: SBGI] closed May 6 trading session having surged 34% at the time when the stock market was navigating a sea of red waters. The trading on Tuesday 7 has also kicked off in the positive with gains of 1.71%. The stock has a positive relative change that stands at $1.04 while exchanging hands at $61.08. The real-time data by Nasdaq shows at NLS volume of $1,500 and an intraday high around $61.64%. Just before the trading started today, the stock was valued at $61.64 and had corrected higher 1.92% with a relative change of +1.16. In addition, it had a pre-market volume of 2,801 with a high/low standing at $61.84/$60.49.
Looking at the key stock data, SBGI is trading above its yearly target at $45. It’s intraday high and low stands at $63.18 and $46.50. Its share volume is currently 16,069,461 while the 50-day average daily volume is 1,335,635. The company has a market capitalization of $5,.5 billion with a P/E ratio around 17.74 and a forward P/E (1y) at 26.53. Its recent earnings per share (EPS) $3.41 and its annualized dividend sits at $0.80.
Why did SBGI surge in generally bear market?
The stock market was in painted red almost every apart from selected stocks like SBGI which rose more than 34%. The stock defied the bear pressure following the news that it had landed a deal with The Walt Disney Co (DIS) that allows it to purchase an equity stake in at least 21 regional sports networks including Fox College Sports for a sum of $9.6 billion.
Consequently, the television network is also offering an extra $1 billion in preferred stock that will go into supporting its new subsidiary Diamond Sports Group. The subsidiary, although indirect will be housing the sports networks.
SinClair has grown to become the largest operator for local TV stations in the United States. It has more than 200 TV stations under its radar and the bet on sport networks has spiked fresh investor interest in its stock. The CEO of the network, Chris Ripley commentated in a recent interview:
“That’s 100 percent the strategy.” He added, “We will become the preeminent local news and sports provider in the country. And those two genres, in terms of live viewership, are head and shoulders above any other genre.”
In continuation Ripley said:
“The current marketplace is getting flooded by big tech — Netflix and Amazon — on the general entertainment side. That’s a problem for anyone who wants to make money. We didn’t want to go up against 800-pound gorillas with unlimited cash.”
About Sinclair Broadcast Group, Inc.
According to the filing with the SEC, the companied is “a diversified broadcasting company with national reach and a strong focus on using our spectrum to bring together content providers, advertisers, and consumers on various platforms.”
Its content is channeled using its very own broadcasting platform that is made of programming that is offered by third party networks as well as syndicators. However, the company also channels its original programming in addition to the digital and internet media outlets owned by Sinclair.