TEGNA Inc. (NYSE:TGNA) executive Lynn B. Trelstad, who serves as the company's Executive Vice President and Chief Operating Officer of Media Operations, has recently sold a significant amount of company stock. The transaction involved the sale of 25,000 shares at a price of $13.88 per share, totaling $347,000.
This recent sale took place on September 12, according to the latest filings. The transaction was executed under a pre-established trading plan, known as a Rule 10b5-1 trading plan, which Trelstad had adopted on March 6 of this year. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of trading on insider information.
Following the sale, Trelstad's remaining direct holdings in TEGNA stock amount to 179,616.535 shares. In addition, the executive has indirect ownership through a 401(k) plan and spousal ownership totaling 10,742.096 and 31,438.692 shares, respectively. Another 6,133.049 shares are held indirectly by Trelstad's spouse through a 401(k) plan.
TEGNA Inc., headquartered in Tysons, Virginia, operates in the television broadcasting industry and is known for its portfolio of media and digital businesses that provide content across various platforms. The company's stock is publicly traded under the ticker symbol TGNA on the New York Stock Exchange.
Investors and market watchers often keep a close eye on insider transactions as they can provide valuable insights into executives' perspectives on the company's future prospects. The sale of shares by a high-ranking executive like Trelstad is a notable event, although it is not uncommon for executives to sell shares for personal financial management reasons, including diversification and liquidity.
The signature on the filing was provided by Marc S. Sher, acting as attorney-in-fact for Trelstad. The sale comes at a time when the media industry continues to experience significant changes and challenges, with companies like TEGNA navigating a rapidly evolving media landscape.
In other recent news, TEGNA Inc. has experienced a series of significant developments. The media company has entered into a broadcast rights agreement with the Dallas Mavericks, expanding the team's television reach to an estimated 10 million people in Texas. This deal will see the airing of over 70 games in the first season free over-the-air on TEGNA station KMPX Dallas-Ft. Worth.
On the executive front, TEGNA announced the departure of Senior Vice President and Chief Legal Officer Lauren S. Fisher, effective September 6, 2024. The reason for Fisher's departure was not disclosed. In a leadership reshuffle, the company appointed Jim Kizer as president and general manager of its Des Moines, Iowa stations WOI and KCWI, while he continues his role at WQAD in the Quad Cities area of Iowa and Illinois.
Financially, TEGNA reported a decline in total company revenue for Q2 2024, primarily due to subscriber losses and a weaker national advertising market. However, the company's local advertising sector, particularly its connected TV sales platform, Premion, showed resilience. TEGNA anticipates a rise in third-quarter revenue due to political ads and the Olympics, and continues to project an adjusted free cash flow guidance of $900 million to $1.1 billion for 2024-2025. These developments reflect recent changes and strategic initiatives within TEGNA Inc.
InvestingPro Insights
Amidst the insider trading activity, TEGNA Inc. (NYSE:TGNA) demonstrates financial metrics and strategic actions that provide a broader context for investors. According to InvestingPro data, TEGNA has a market capitalization of $2.39 billion, with a notably low price-to-earnings (P/E) ratio of 7.57. This valuation metric is particularly interesting as it suggests the stock may be undervalued compared to industry peers, especially when considering the company's strong free cash flow yield, which is a sign of financial health and efficiency.
The company's commitment to shareholder returns is evident through its consistent dividend payments, which have been maintained for an impressive 54 consecutive years. Moreover, TEGNA has raised its dividend for three consecutive years, with a current dividend yield of 3.5%. This consistent return to shareholders is a positive signal for long-term investors seeking stable income streams.
While the revenue has seen a decline of 10.29% over the last twelve months as of Q2 2024, the gross profit margin remains robust at nearly 40%. This indicates that despite the top-line pressure, the company is maintaining profitability. Additionally, InvestingPro Tips highlight that TEGNA's management has been actively buying back shares and that the company's liquid assets exceed short-term obligations, which can be reassuring for investors concerned about financial stability and management's confidence in the company's future.
For those interested in further insights, InvestingPro offers additional InvestingPro Tips for TEGNA, which can be accessed for more in-depth analysis and information on the company's prospects.
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