The board of directors at Sinclair Broadcast Group has approved a $150 million share repurchase authorization, to be accessed once its existing authorization is exhausted.
Since Feb. 14, Sinclair has repurchased approximately 2.5 million shares, and has around $47 million in remaining capacity under its existing authorization.
Sinclair has plenty of liquidity, said Marci Ryvicker, managing director at Wells Fargo Securities--$280 million cash on hand as of Dec. 31 and $360 million via its revolver and an undrawn term loan.
Ryvicker called the repurchase authorization "an efficient use of SBGI's cash."
Earlier in the week, a Ryvicker report downgraded several station group stocks, including Sinclair's, to "Market Perform," and that's where they'll stay for the time being.
"We remain Market Perform given the likelihood of increased regulatory scrutiny," said Ryvicker in her Sinclair/stock repurchase report.