In a recent transaction, Gary Weitman, the Executive Vice President and Chief Communications Officer of Nexstar Media Group, Inc. (NASDAQ:NXST), sold a portion of his holdings in the company. According to the latest filings, Weitman offloaded 432 shares of Nexstar's common stock at prices ranging from $167.43, amounting to a total of over $72,330.
This sale occurred shortly after Weitman acquired 1,750 shares through a transaction on May 17, which were valued at a total of approximately $296,730 with a price per share of $169.56. Following these transactions, Weitman's direct ownership in Nexstar Media Group stands at 10,902 shares.
In addition to the sale of common stock, Weitman's vested restricted stock units (RSUs) were converted into an equivalent number of common stock shares. These RSUs are part of a time-based award granted on May 17, 2021, which vests annually over four years. According to the footnotes in the filing, the RSUs do not expire but will be forfeited if Weitman's employment with Nexstar terminates for reasons other than a company change of control.
Investors and market watchers frequently monitor insider transactions such as these for insights into executive sentiment regarding their company's stock. Nexstar Media Group, a leader in the television broadcasting industry, has seen its stock performance reflect the broader trends in the media sector. As executives manage their personal holdings, their actions can provide additional context to the market's understanding of the company's financial health and future prospects.
InvestingPro Insights
As investors dissect the recent insider transactions by Nexstar Media Group's Executive Vice President, Gary Weitman, it's worth noting some key financial metrics and market sentiment provided by InvestingPro. Nexstar's market capitalization stands at approximately $5.32 billion, with a P/E ratio of 13.71, reflecting a market valuation that is potentially attractive relative to earnings. Adjusted for the last twelve months as of Q1 2024, the P/E ratio is slightly lower at 12.78, indicating a slight improvement in earnings relative to the stock price.
One of the InvestingPro Tips highlights that management has been actively engaging in share buybacks, which often signals confidence in the company's value and future prospects. Additionally, Nexstar boasts a high shareholder yield and has raised its dividend for 11 consecutive years, currently offering a dividend yield of 4.17%, which is particularly appealing for income-focused investors. This consistent increase in dividends, including a 25.19% dividend growth in the last twelve months as of Q1 2024, underscores the company's commitment to returning value to shareholders.
While the stock has experienced a notable decline over the last week, with a price total return of -9.74%, Nexstar has a solid track record with a high return over the last decade. For those seeking more insights, there are additional InvestingPro Tips available that could shed light on Nexstar's financial health and future performance. Investors interested in a deeper dive can explore these tips by visiting InvestingPro and can benefit from an additional 10% off a yearly or biyearly Pro and Pro+ subscription by using the coupon code PRONEWS24. With a total of 9 additional InvestingPro Tips listed, users have a wealth of information at their fingertips to make more informed investment decisions.
The recent insider activity, when viewed alongside Nexstar's financials and the InvestingPro metrics, provides a richer picture of both the executive sentiment and the broader investment landscape for the company. The combination of share buybacks, consistent dividend growth, and a reasonable valuation could make NXST an interesting consideration for investors looking at the media sector.
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