John R. Muse, a director at Nexstar Media Group, Inc. (NASDAQ:NXST), recently sold a portion of his holdings in the company. According to a recent SEC filing, Muse sold 2,385 shares of common stock on November 22, 2024. The shares were sold at an average price of $170.157 each, resulting in a total transaction value of approximately $405,824.
Following this transaction, Muse retains 25,978 shares of Nexstar Media Group. The sale was conducted directly by Muse, as indicated in the filing.
In other recent news, Nexstar Media Group reported a record third-quarter net revenue, reaching $1.37 billion, marking the highest in the company's history. This impressive growth, a 20.7% increase year-over-year, was primarily fueled by a surge in political advertising revenue and a significant rise in distribution revenue. The company also exhibited a strong commitment to its shareholders by returning a substantial $590 million through dividends and share repurchases, and managed to reduce its debt by $146 million.
Despite a reported 4.5% decline in nonpolitical advertising, Nexstar remained bullish, with political advertising revenue surging to $154 million, a substantial increase from the previous year. The company also secured significant affiliation renewals and achieved record audiences for its sports and news programming strategies.
These are recent developments for Nexstar, which has expressed optimism about future growth, particularly in political advertising and potential industry deregulation. The company also aims to enhance shareholder value through consolidation and improved local news reporting. However, it is worth noting that cash contributions from partners in The CW were zero, contrasting with $11 million in Q3 2023.
InvestingPro Insights
While John R. Muse's recent sale of Nexstar Media Group (NASDAQ:NXST) shares might raise eyebrows, a closer look at the company's financials and market position reveals a more nuanced picture. According to InvestingPro data, Nexstar boasts a market capitalization of $5.32 billion and a price-to-earnings ratio of 9.83, suggesting the stock may be undervalued relative to its earnings potential.
InvestingPro Tips highlight that Nexstar has been aggressively buying back shares, which often signals management's confidence in the company's future prospects. This strategy aligns with the company's shareholder-friendly approach, as evidenced by its high shareholder yield and 12-year streak of consecutive dividend increases.
The company's financial health appears robust, with InvestingPro data showing a revenue of $5.224 billion in the last twelve months as of Q3 2023, and an impressive gross profit margin of 58.38%. Nexstar's ability to generate strong cash flows is reflected in its attractive valuation, with InvestingPro Tips noting that the current valuation implies a strong free cash flow yield.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights, with 10 more tips available for Nexstar Media Group. These tips could provide valuable context for understanding the company's position in the evolving media landscape and its potential for future growth.
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