Nexstar Broadcasting Group, Inc. (NXST) stock achieved a notable milestone by reaching a 52-week high of $190.00, reflecting a significant uptrend in investor confidence. This peak comes amidst a year that has seen the company's stock value surge by 24.32%, underscoring a strong performance in the broadcasting sector. The ascent to this high watermark is indicative of Nexstar's robust operational results and strategic initiatives that have resonated well with investors, positioning the company as a standout in its industry over the past year.
In other recent news, Nexstar Media Group (NASDAQ:NXST), Inc. reported a record third quarter revenue of $1.37 billion, marking a 20.7% increase from the previous year. The company's net income also saw a significant rise, reaching $180 million compared to $8 million in the same period last year. Despite an earnings miss with adjusted earnings per share at $5.27, slightly below the $5.41 expected by analysts, the company witnessed robust growth in its top-line and improved profitability.
Distribution revenue, constituting over half of Nexstar's total revenue, grew 20.2% to $719 million. Additionally, advertising revenue saw a 22.2% increase to $622 million, bolstered by $154 million in political advertising in anticipation of the 2024 elections. The company also made strides in its strategy for The CW network, reducing operating losses by $36 million year-over-year.
In terms of shareholder returns, Nexstar returned $233 million through dividends and share repurchases in the quarter, reducing shares outstanding by 3.1%. These are among the recent developments for the company, which is heading into an election year with management expressing confidence in increased political advertising spending.
InvestingPro Insights
Nexstar Broadcasting Group's (NXST) recent achievement of a 52-week high is further supported by real-time data from InvestingPro. The company's stock is currently trading at 97.85% of its 52-week high, confirming its strong market position. This aligns with the article's mention of the stock's 24.32% surge over the past year.
InvestingPro data reveals a P/E ratio of 14.28, suggesting that the stock may still be reasonably valued despite its recent gains. Additionally, Nexstar boasts a healthy dividend yield of 3.69%, with a remarkable dividend growth of 25.19% over the last twelve months as of Q2 2024. This underscores the company's commitment to shareholder returns, which is likely contributing to investor confidence.
InvestingPro Tips highlight that Nexstar has raised its dividend for 12 consecutive years and has been aggressively buying back shares. These actions demonstrate management's confidence in the company's financial health and future prospects, which may be driving the stock's upward trajectory.
For investors seeking a deeper understanding of Nexstar's potential, InvestingPro offers 7 additional tips that could provide valuable insights into the company's performance and outlook.
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