Are Insiders Selling These 3 High-Potential Stocks Too Early?

Sinclair Broadcast Group Inc. (NASDAQ:SBGI) is another company that had an insider unload shares this past week. Director Martin R. Leader offloaded 1,000 shares on Friday at a weighted average price of $30.71, and currently owns 62,794 shares. Although this sale is not overly significant, investors should take note of the high insider trading activity on the sell side witnessed in 2015. In contrast, the company has not registered any insider buying since 2012. Nonetheless, several valuation metrics suggest a more positive outlook for the diversified television broadcasting company. The stock trades at a trailing P/E of 13.83, which compares with the 21.63 ratio for the S&P 500 benchmark, and at a forward P/E ratio of only 9.36.

Despite the fact that Sinclair Broadcast posted lower net income for the nine months that ended September 30 relative to the same period a year ago, analysts anticipate substantial bottom-line growth for fiscal year 2016. Sinclair reported total net broadcast revenues of $1.46 billion for the first nine months of 2015, up from $1.23 billion reported for the same period of 2014. Therefore, it appears that Sinclair Broadcast Group is well-positioned to deliver the earnings growth analysts anticipate. A total of 31 hedgies from our database were invested in the television broadcasting company at the end of the third quarter, amassing almost 22% of its shares. Richard Barrera’s Roystone Capital Partners reported ownership of 4.26 million shares of Sinclair Broadcast Group Inc. (NASDAQ:SBGI) through its 13F for the July-to-September period.

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