Nexstar Media Group Inc. (NASDAQ:NXST) recently disclosed a transaction by one of its top executives. EVP and Chief Financial Officer Lee Ann Gliha sold 326 shares of common stock at a price of $160 per share, totaling over $52,000.
The transaction, dated June 4, 2024, was part of a series of recent transactions involving Nexstar shares by Gliha. In addition to the sale, records show that on June 3, 2024, Gliha acquired a total of 1,312 shares through option exercises priced at $163.09 per share, amounting to a total of $213,974.
It's also noted that Gliha's ownership in Nexstar has adjusted following these transactions. After the sale, Gliha's direct ownership in the company's common stock stood at 5,462 shares.
In the context of these transactions, it's important to highlight that the executive's trading activities also involved derivative securities, specifically restricted stock units (RSUs) and performance-based restricted stock units (PSUs). According to the footnotes in the filing, these units convert into Nexstar's common stock upon vesting, with certain conditions and performance metrics applied, particularly for the PSUs.
The filing does not indicate any immediate expiration for these RSUs and PSUs, but it does mention that unvested units would be forfeited upon the termination of employment, barring a company change of control.
These transactions provide a glimpse into the trading activities of Nexstar's executives and offer investors insight into the movements of shares by those with intimate knowledge of the company. As with all insider transactions, they are reported to the public for transparency and to comply with regulations.
Investors and analysts often monitor insider buying and selling as it can provide signals about executives' confidence in their company's prospects. However, these transactions can be motivated by a variety of factors and should not be the sole basis for investment decisions.
In other recent news, Nexstar Broadcasting Group has been making waves with its financial performance. The company kicked off 2024 with a record first-quarter net revenue of $1.28 billion, supported by a high distribution revenue of $761 million. This robust start was further bolstered by an adjusted EBITDA of $542 million, surpassing forecasts by 3.3%.
Deutsche Bank, while maintaining a Buy rating on Nexstar's stock, adjusted the company's price target from $210.00 to $207.00. This adjustment was influenced by changes in Nexstar's first-quarter performance and management's recent statements about the company's operations. Deutsche Bank also revised its 2024 EBITDA projection for Nexstar to $2.19 billion, reflecting Nexstar's updated calculation of adjusted EBITDA and adjusted free cash flow.
Despite a slight dip in advertising revenue in Q1, Nexstar anticipates improvements in the second quarter, particularly in national advertising. The company saw a significant increase in political advertising, with a $31 million rise compared to the same period last year. Furthermore, Nexstar's growth drivers, including the CW network and NewsNation, are expected to significantly boost operating profit and distribution respectively.
Nexstar remains confident in its business and long-term growth prospects, as evidenced by share repurchases and a belief in the stock's undervaluation. These recent developments highlight Nexstar's strategic focus on shareholder value and its commitment to maintaining a robust financial performance.
InvestingPro Insights
Nexstar Media Group Inc. (NASDAQ:NXST) has been making headlines with its executive stock transactions, and investors are keenly observing the company's financial health and strategic moves. As of the last twelve months as of Q1 2024, Nexstar boasts a robust market capitalization of $5.2 billion and an adjusted P/E ratio of 12.47, reflecting a value-oriented investment opportunity relative to earnings.
One of the InvestingPro Tips that stands out is Nexstar's commitment to rewarding shareholders, as evidenced by its high shareholder yield and a history of raising dividends for 11 consecutive years. Additionally, the company has a track record of maintaining dividend payments for 12 years, with a notable dividend growth of 25.19% in the last twelve months as of Q1 2024. These factors underscore Nexstar's dedication to providing consistent returns to its investors.
Another key metric for investors is the company's financial stability. Nexstar's liquid assets surpass its short-term obligations, which is a reassuring sign of the company's ability to meet its immediate financial responsibilities. The company's gross profit margin stands at a healthy 57.0%, further demonstrating its efficiency in generating income relative to its costs.
For investors looking to delve deeper into Nexstar's financials and strategic insights, there are additional InvestingPro Tips available at InvestingPro. With these tips, investors can gain a comprehensive understanding of Nexstar's market position and future prospects. Moreover, by using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable insights.
It's also noteworthy that analysts predict Nexstar will maintain profitability this year, a sentiment backed by the company's performance over the last twelve months. With a total of 7 additional InvestingPro Tips listed for Nexstar, investors have ample resources to assess the company's potential for long-term growth and value creation.
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