‘Undervalued SBGI’: Stuck In The Fifties

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With Wednesday’s Closing Bell on Wall Street, Sinclair Broadcast Group shares entered after-hours trading priced at $52.85.


That’s great, compared to where SBGI was prior to May 6, when news of its regional sports network plans became known.

But, since that news, Sinclair has been mired in the $50 range.

Much of the excitement surrounding Sinclair, at least for investors, waned on May 10.

That’s when SBGI topped out at $61.81.

Growth was forecast to continue, and analysts put a $70.75 1-year target estimate on SBGI — a company far from its imploded merger with¬†Tribune Media.

Analysts continue to see Sinclair as “undervalued,” while Sinclair’s KATV-TV in Little Rock; WGME-TV in Portland, Me.; and WRGB-TV in Albany, N.Y. were singled out for quality journalism by each winning National Edward R. Murrow Awards.

Yet, investors seem lukewarm on Sinclair. Values have not topped $56 since May 21, nor have they surpassed $55 since June 5.

The dip ended June 10, with a $50.51 pricing seen.

That said, where Sinclair goes in the next week is uncertain.