Nexstar Media Group, Inc. (NASDAQ:NXST) President of Networks, Sean Compton, has engaged in recent transactions involving the company's stock, according to a new SEC filing. On June 4, 2024, Compton sold 849 shares of Nexstar's common stock at a price of $160 per share, totaling approximately $135,840 in value.
The transactions occurred shortly after Compton acquired 1,876 shares through option exercises on June 3, 2024, at a price of $163.09 per share, amounting to a total of $305,956. These shares were obtained through the conversion of both time-based and performance-based restricted stock units (RSUs and PSUs), as outlined in the company's footnote disclosures.
The footnotes also clarify that these RSUs and PSUs convert into Nexstar's common stock upon vesting and are contingent upon the fulfillment of certain company performance metrics. Specifically, a portion of the RSUs and PSUs awarded to Compton on June 3, 2022, have vested on June 3, 2023, and 2024, with additional units set to vest in the following two years, assuming performance conditions are met and Compton remains employed by Nexstar.
Following the sale of shares, Compton's ownership in Nexstar's common stock has been adjusted to a total of 13,578 shares. The transactions reflect changes in the executive's stake in the company and are part of the routine disclosures that corporate insiders must file with the SEC.
Investors often monitor insider transactions as they provide insights into executives' perspectives on the company's stock value and future performance. While these filings do not necessarily indicate a change in company strategy or outlook, they do offer a glimpse into the actions taken by those with the most intimate knowledge of the company's operations.
In other recent news, Nexstar Broadcasting Group has been the subject of financial analysis by Deutsche Bank (ETR:DBKGn), resulting in a slight decrease in the company's price target from $210.00 to $207.00. Despite this, the firm maintained a 'Buy' rating on Nexstar's stock. This adjustment came after Nexstar's first-quarter performance met revenue expectations and surpassed adjusted EBITDA forecasts by 3.3%. Deutsche Bank's model revisions take into account changes in Nexstar's EBITDA and free cash flow calculations.
Simultaneously, Nexstar has announced record-setting first-quarter net revenue of $1.28 billion, backed by high distribution revenue of $761 million. Despite a slight decline in advertising revenue, the company anticipates improvements in the next quarter, particularly in national advertising. Political advertising has seen a significant increase, with a $31 million rise compared to the same period last year.
The company also expressed optimism about its growth drivers, including the CW network, expected to boost operating profit by over $100 million for the year, and NewsNation, which has risen to become the second-largest cable news network in pay-TV distribution. These developments, coupled with the company's strategic focus on shareholder value, underscore Nexstar's confidence in its long-term growth prospects.
InvestingPro Insights
Nexstar Media Group's recent insider transactions coincide with notable financial metrics and strategic moves that may interest investors. The company, with a market capitalization of $5.2 billion, boasts a solid track record of shareholder returns, supported by a Price/Earnings (P/E) ratio of 12.47 as of the last twelve months leading up to Q1 2024. This valuation metric suggests that the company's stock is priced relatively attractively compared to its earnings.
One of the key InvestingPro Tips for Nexstar is the company's consistent approach to increasing shareholder value through dividends and share repurchases. Nexstar has not only raised its dividend for 11 consecutive years but has also maintained dividend payments for 12 consecutive years. Additionally, the management's aggressive share buyback strategy underscores their confidence in the company's value, further reinforcing its commitment to returning capital to shareholders.
From a profitability standpoint, analysts predict that Nexstar will remain profitable this year, a continuation of its performance over the last twelve months. The company's gross profit margin stands at a robust 57.0%, indicating a strong ability to translate sales into profit. Moreover, the dividend yield is attractive at 4.27%, a figure that's particularly appealing for income-focused investors.
For those interested in further insights and tips on Nexstar, InvestingPro offers additional detailed analysis. There are currently 7 more InvestingPro Tips available, which can be accessed through a subscription. Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing an even greater value for those looking to deepen their investment research.
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