Sinclair Broadcast Group Stock Soars 20.32% on Insider Buying

On April 8, 2025, Sinclair Broadcast Group's stock surged by 20.32% in pre-market trading, marking a significant rise that has caught the attention of investors and analysts alike.

One of the key factors contributing to this surge is the recent insider buying activity. David D. Smith, who holds a 10% stake in the company and serves as the Executive Chairman, purchased 258,113 shares on April 3, 2025, for a total of approximately $3.7 million. This purchase, with prices ranging from $13.20 to $14.98 per share, indicates a strong confidence in the company's future prospects.

Over the past 24 months, insiders have collectively bought 274,594 shares of Sinclair Broadcast Group, totaling $3.96 million. This consistent buying trend by insiders suggests a positive outlook on the company's performance and potential growth opportunities.

Additionally, the current share price of $13.78 is 23% higher than the estimated fair value of $11.21 based on a 2 Stage Free Cash Flow to Equity model. This discrepancy suggests that the market may be overvaluing the stock, but the recent insider buying activity provides a counterargument, indicating that insiders believe the stock is undervalued.