Nexstar Media Group, Inc. (NASDAQ:NXST) executive vice president of operations, Blake Russell, has sold a portion of his company stock, according to a recent SEC filing. The transactions, which took place over a series of days, involved the sale of shares at a price of $160.00 each, amounting to a total of $84,480.
The SEC filing detailed that on June 4, 2024, Russell disposed of 528 shares of Nexstar's common stock. The sale was executed at a uniform price, simplifying the calculation of the total transaction value. Following this sale, Russell's direct ownership in the company's common stock decreased, but he still retained a substantial holding of 26,322 shares.
Notably, the filing also mentioned another transaction type involving restricted stock units (RSUs), which are commonly awarded to executives as part of their compensation packages. These RSUs convert into shares of common stock upon vesting. On June 3, 2024, a day prior to the sale, Russell acquired 1,313 shares through the vesting of RSUs, with no transaction price attached since these shares represent vested equity awards.
Investors often monitor insider transactions as they can provide insights into an executive's view of the company's stock value and future performance. While sales of stock by executives are not uncommon and can be motivated by various personal financial planning reasons, they are still closely watched for the signals they may send about corporate health and insider confidence.
Nexstar Media Group, based in Irving, Texas, operates as a television broadcasting company, owning, operating, and providing services to television stations across the United States. The company's stock trades on the NASDAQ under the ticker symbol NXST.
In other recent news, Nexstar Broadcasting Group's first quarter performance has led to a minor adjustment in its price target by Deutsche Bank (ETR:DBKGn). The bank revised the target from $210 to $207, maintaining a Buy rating on the stock. This change reflects Nexstar's Q1 results, which met revenue expectations and exceeded adjusted EBITDA forecasts by 3.3%. The company reported a record Q1 net revenue of $1.28 billion, bolstered by a substantial distribution revenue of $761 million.
These recent developments include a $31 million year-over-year increase in political advertising, contributing to Nexstar's optimism about its growth drivers. The company also anticipates a boost in operating profit exceeding $100 million for the year from The CW network. Additionally, NewsNation, Nexstar's other growth driver, has become the second-largest cable news network in pay-TV distribution.
Deutsche Bank's updated financial model for Nexstar takes into account the company's new EBITDA calculation and adjusted free cash flow. The bank projects Nexstar's 2024 EBITDA to be $2.19 billion, a figure that aligns with the company's guidance for the same period. However, due to slower than expected profit growth for The CW, Deutsche Bank has lowered its adjusted EBITDA forecast for 2024 by 2.0% on a comparable basis. Despite this, the firm maintains that these investments are expected to yield long-term benefits for Nexstar.
InvestingPro Insights
Nexstar Media Group's executive transactions come at a time when the company's financial health and market performance have shown interesting dynamics. According to InvestingPro data, Nexstar boasts a market capitalization of $5.2 billion, with a price-to-earnings (P/E) ratio of 13.39, which adjusts to a slightly lower 12.47 on a last twelve months basis as of Q1 2024. This suggests a reasonable valuation relative to earnings.
One of the standout InvestingPro Tips for Nexstar is management's aggressive share buyback strategy, which often reflects confidence in the company's valuation and future prospects. Additionally, the company has demonstrated a commitment to returning value to shareholders, with a noteworthy dividend yield of 4.27% and a history of raising its dividend for 11 consecutive years.
The company's revenue in the last twelve months as of Q1 2024 was $4.96 billion, with a slight quarterly revenue growth of 2.15%. While the revenue growth shows a modest contraction of -5.67% in the last twelve months, Nexstar's gross profit margin remains robust at 57.0%, indicating effective cost management and a solid business model.
For readers interested in further insights, there are additional InvestingPro Tips available, including analysis on Nexstar's profitability this year, its high return over the last decade, and how its liquid assets compare to short-term obligations. These tips can provide a deeper understanding of the company's financial health and are accessible through an InvestingPro subscription. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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