Nexstar Media Group Inc.'s (NASDAQ:NXST) Executive Vice President and Chief Financial Officer, Lee Ann Gliha, has recently sold a portion of her company stock, according to a new SEC filing. The transactions, which took place over the course of two days, involved the sale of shares for tax obligations and the vesting of restricted stock units (RSUs).
On August 14, Gliha sold 984 shares of Nexstar's common stock at an average price of $157.633, totaling over $155,110. This sale was made to cover tax withholding obligations related to the vesting of RSUs and performance-based restricted stock units (PSUs). The filing indicated that the sale was necessary to satisfy tax requirements through a "sell to cover" transaction.
In addition to the sales, Gliha also acquired 2,500 shares through the vesting of RSUs and PSUs on August 13. These vesting events are part of an award granted on August 13, 2021, which allows for the conversion of RSUs and PSUs into common stock on each anniversary of the award through 2025. The Compensation Committee of Nexstar's Board of Directors confirmed that the performance conditions for the PSUs were met, leading to the full vesting of 1,250 PSUs on the anniversary date.
Following these transactions, Gliha's ownership in Nexstar includes 8,107 shares of common stock. The company, a leading player in the television broadcasting industry with a strong presence across various media platforms, has not seen any immediate market reaction to these insider transactions.
Investors often monitor insider buying and selling as it can provide insights into a company's financial health and executive confidence. However, transactions like these, particularly those related to tax obligations, are a routine part of compensation for executives and may not necessarily signal a change in the company's outlook or strategy.
In other recent news, Nexstar Media Group has reported record total net revenue for the second quarter, marking its highest quarterly distribution revenue for the third consecutive quarter. The company attributes this growth to its strategic partnerships with major sports leagues and the successful launch of NewsNation. Nexstar's Board has also welcomed Ellen Johnson, further enhancing corporate governance, and approved a substantial $1.5 billion share repurchase authorization, signaling confidence in the company's financial health.
Despite a slowdown in certain advertising categories such as furniture, automotive, and entertainment, Nexstar has seen a significant increase in political advertising revenue, which more than doubled in Q2 compared to 2020. The company is optimistic about the upcoming elections and aims to maximize political revenue.
In the recent developments, Nexstar's CW network has experienced a reduction in operating losses and an increase in primetime ratings. The company's adjusted EBITDA for the quarter was $398 million with a margin of 31.4%, up from the previous year. Looking forward, Nexstar plans to strategically use its cash to create shareholder value.
InvestingPro Insights
Amid the recent insider transactions at Nexstar Media Group Inc. (NASDAQ:NXST), investors may look at broader financial metrics and management activities to gauge the company's performance and strategic direction. Nexstar's management has demonstrated confidence in the company's value through aggressive share buybacks, an InvestingPro Tip that suggests a bullish stance from the company's leadership.
Moreover, Nexstar has shown a commitment to returning value to shareholders, boasting a high shareholder yield. This is further underscored by the company's impressive track record of raising its dividend for 11 consecutive years and maintaining dividend payments for 12 consecutive years, signaling financial stability and reliability in rewarding investors.
From a financial standpoint, Nexstar's market capitalization stands at $5.22 billion, with a P/E ratio of 12.65, which adjusts to 11.95 when looking at the last twelve months as of Q2 2024. This indicates a valuation that may be attractive compared to industry peers. Additionally, the company's dividend yield as of August 2024 is a robust 4.26%, paired with a significant dividend growth of 25.19% over the last twelve months, reflecting a strong income-generating investment for shareholders.
Interested readers can find additional InvestingPro Tips to further their understanding of Nexstar's financial health and future prospects. There are currently seven more tips available on InvestingPro, which can be accessed at https://www.investing.com/pro/NXST.
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