Andrew Alford, President of Broadcasting at Nexstar Media Group, Inc. (NASDAQ:NXST), has sold 755 shares of the company's common stock, netting a total of $120,800. The transaction took place on June 4, 2024, with the shares being sold at a price of $160 each.
This sale comes after a series of transactions that occurred earlier in the week. On June 3, Alford acquired a total of 1,876 shares of Nexstar's common stock through the exercise of options, with each share valued at $163.09, amounting to a total transaction value of $305,956. Following these transactions, Alford's direct ownership in the company stands at 11,218 shares.
The transactions were disclosed in a regulatory filing with the Securities and Exchange Commission. It should be noted that executives of public companies often own and trade their own firm's stock, and these transactions can be part of their compensation package or personal investment strategy.
Nexstar Media Group, headquartered in Irving, Texas, is a leading diversified media company that operates or services 199 television stations and related digital multicast signals reaching 116 markets or approximately 68% of all U.S. television households.
Investors and the market typically watch insider transactions closely as they can provide insights into an executive's perspective on the company's performance and outlook. The transactions are part of the normal course of business in the corporate world, and the reasons for buying or selling can vary widely.
The company's stock performance and any future transactions by its executives will continue to be a point of interest for shareholders and potential investors. Nexstar Media Group has not issued any statement regarding the recent transactions by Andrew Alford.
In other recent news, Nexstar Broadcasting Group's first-quarter performance has been the subject of recent developments. The company reported record-setting first-quarter net revenue of $1.28 billion, bolstered by a high distribution revenue of $761 million. Adjusted EBITDA stood at $542 million, exceeding forecasts by 3.3%. Deutsche Bank, maintaining a Buy rating on Nexstar's stock, adjusted its price target from $210.00 to $207.00, reflecting changes in the company's first-quarter performance and recent statements about operations.
Political advertising for Nexstar saw a significant year-over-year increase of $31 million. The company expects the CW network to boost operating profit by over $100 million for the year. However, Deutsche Bank reduced its adjusted EBITDA forecast for 2024 by 2.0% on a comparable basis due to slower than anticipated profit increase for The CW, largely due to investments in sports rights.
Nexstar is optimistic about its growth prospects, including NewsNation, which has risen to become the second-largest cable news network in pay-TV distribution. The company's management indicated that changes in EBITDA calculation would have a positive effect, increasing it by $52 million for the year, with guidance for 2024 EBITDA now expected to be between $2.14 billion and $2.25 billion. Deutsche Bank is now projecting a $2.19 billion EBITDA for 2024.
InvestingPro Insights
Amidst the recent insider trading activity at Nexstar Media Group, Inc. (NASDAQ:NXST), investors seeking to understand the broader financial context of the company may find the following data and tips from InvestingPro valuable. Nexstar's market capitalization stands at a robust $5.2 billion, reflecting a significant presence in the media sector. The company's P/E ratio, a key indicator of its valuation, is currently at an attractive 13.39, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at an even more appealing 12.47.
InvestingPro Tips highlight that Nexstar's management has been actively buying back shares, signaling confidence in the company's value and future prospects. Additionally, Nexstar boasts a high shareholder yield and has a commendable track record of raising its dividend for 11 consecutive years, maintaining dividend payments for 12 consecutive years. These factors suggest a strong commitment to returning value to shareholders and a stable financial foundation. For investors keen on dividend income, Nexstar’s dividend yield as of May 2024 is a generous 4.27%, complemented by a notable dividend growth of 25.19% in the last twelve months as of Q1 2024.
For those interested in exploring further, there are additional InvestingPro Tips available that delve into Nexstar's profitability predictions for the year, its performance over the last decade, and how its liquid assets compare to short-term obligations. These insights could be particularly valuable for investors making informed decisions about their holdings in the company. To gain access to these insights, consider subscribing to InvestingPro, and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Overall, Nexstar Media Group's financial health appears robust, with a solid history of profitability and a forward-looking management strategy. The company's performance metrics and the strategic decisions of its executives, such as Andrew Alford, will undoubtedly remain a focal point for current and potential shareholders.
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