IRVING, Texas - Nexstar Media Group, Inc. (NASDAQ: NASDAQ:NXST), a diversified media company, has declared a quarterly cash dividend of $1.69 per share, payable on August 23, 2024, to shareholders on record as of August 9, 2024. Additionally, the company's Board of Directors has authorized a new share repurchase program of up to $1.5 billion of its common stock, supplementing the existing buyback plan from July 2022, which still has $496 million remaining as of May 8, 2024.
The company, which owns the largest local television broadcasting group in America, including 200 stations in 117 U.S. markets, intends to continue paying regular quarterly cash dividends. However, future dividends will be subject to quarterly review and discretion of the Board of Directors.
The new share repurchase program, which is also at the discretion of the Board, will be subject to regulatory limitations. This buyback plan represents Nexstar's ongoing commitment to enhancing shareholder value and reflects the company's confidence in its financial strength and future business prospects.
Nexstar's portfolio includes The CW, a major broadcast network, NewsNation, a national news network, and popular entertainment multicast networks Antenna TV and Rewind TV. The company also holds a 31.3% ownership stake in TV Food Network. Its digital assets, including local TV station websites, The Hill, and NewsNationNow.com, rank collectively as a Top 10 U.S. digital news and information property.
Nexstar Media Group has reported record-setting first-quarter net revenue of $1.28 billion, bolstered by a high distribution revenue of $761 million. The company also witnessed a significant increase in political advertising revenue, with a $31 million rise compared to the same period last year. Despite a slight decline in advertising revenue in Q1, improvements are expected in the second quarter, particularly in national advertising.
Nexstar has announced the appointment of Lloyd Bucher as the new Vice President and General Manager of its Philadelphia operations. Bucher, a Philadelphia native with nearly three decades of industry experience, is expected to leverage his expertise in the new role.
In analyst news, Deutsche Bank has updated its financial model for Nexstar, leading to a minor decrease in the company's price target from $210.00 to $207.00. This adjustment reflects Nexstar's first-quarter performance and recent statements about the company's operations.
InvestingPro Insights
Nexstar Media Group's commitment to shareholder returns is underscored by its robust financial health and strategic management decisions. With a market capitalization of $5.82 billion and a P/E ratio that has adjusted to a favorable 13.96 over the last twelve months as of Q1 2024, the company presents a compelling value proposition. Investors may find the company's consistent dividend payments particularly attractive; Nexstar has raised its dividend for 11 consecutive years and maintained payments for 12 consecutive years, highlighting a dependable income stream.
Notably, Nexstar's management has shown confidence in the company's prospects through aggressive share buybacks, as indicated by the recent $1.5 billion authorization. This aligns with an InvestingPro Tip that management is actively buying back shares, a move that can often signal leadership's belief in the company's undervalued stock and a commitment to capital return strategies. Additionally, Nexstar's liquidity position is strong, with liquid assets surpassing short-term obligations, providing a cushion for operational needs and future investments.
For readers looking to delve deeper into Nexstar's financial standing and future outlook, InvestingPro offers a suite of additional tips, including insights on the company's profitability, trading trends, and analyst predictions. There are 9 additional InvestingPro Tips available for Nexstar Media Group, which can be accessed by visiting: https://www.investing.com/pro/NXST. To enhance your investment research with these insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Reflecting on the company's performance, Nexstar has demonstrated a strong return over the last month, with a 13.07% price total return, and it's trading near its 52-week high, at 94.61% of the peak price. The combination of a solid dividend yield, currently at 3.81%, and a history of dividend growth, which saw a significant increase of 25.19% over the last twelve months as of Q1 2024, positions Nexstar as an attractive option for income-focused investors.
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