In a recent transaction, Brett Jenkins, Executive Vice President and Chief Technology & Digital Officer at Nexstar Media Group, Inc. (NASDAQ:NXST), sold 4,331 shares of common stock. The shares were sold at a price of $170.64 each, amounting to a total transaction value of $739,041. Following this sale, Jenkins retains ownership of 25,540 shares. The transaction was executed on November 25, 2024, as reported in a regulatory filing.
In other recent news, Nexstar Media Group reported its highest third-quarter net revenue in the company's history, reaching $1.37 billion, a 20.7% increase from the previous year. This growth was primarily driven by a surge in political advertising revenue and a significant rise in distribution revenue. The company returned $590 million to shareholders and reduced its debt by $146 million, indicating strong financial management.
Despite a 4.5% decline in nonpolitical advertising, political advertising revenue surged to $154 million, marking a significant increase year-over-year. Nexstar's programming strategies in sports and news also saw success, with The CW network achieving record audiences. The company secured significant affiliation renewals, including a deal with CBS for 42 markets, further solidifying its position in the industry.
These recent developments reflect Nexstar's strong financial performance and strategic positioning. The company maintains its guidance of a low-teens market share for political revenue, and is investing in a government relations office to advocate for regulatory reform. Despite some challenges, such as a decrease in capitalized software obligations and pension credits, Nexstar continues to demonstrate resilience and adaptability in the evolving media landscape.
InvestingPro Insights
While Brett Jenkins' recent stock sale might raise eyebrows, a deeper look at Nexstar Media Group's financials and market position reveals a more nuanced picture. According to InvestingPro data, Nexstar boasts a market capitalization of $5.3 billion and a price-to-earnings ratio of 9.78, suggesting the stock may be undervalued relative to its earnings potential.
InvestingPro Tips highlight that Nexstar's management has been aggressively buying back shares, indicating confidence in the company's future prospects. This aligns with the company's strong shareholder yield and its impressive track record of raising dividends for 12 consecutive years. The current dividend yield stands at 3.96%, which is particularly attractive in the media sector.
Furthermore, Nexstar's financial health appears robust. The company's revenue for the last twelve months as of Q3 2024 reached $5.224 billion, with a gross profit margin of 58.38%. This solid performance is reflected in the company's ability to generate strong free cash flow, as noted by another InvestingPro Tip.
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 executive transactions like Jenkins' recent sale.
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