IRVING, TX – Nexstar Media Group, Inc. (NASDAQ:NXST) director Charles Thomas McMillen has conducted notable transactions in the company's stock, according to the latest Form 4 filing with the Securities and Exchange Commission. On June 5, McMillen sold 1,475 shares of Nexstar's common stock at an average price of $156.87, totaling over $231,383.
In addition to the sale, the filing revealed that McMillen also acquired 2,500 shares through option exercises at a price of $52.54 per share, amounting to $131,350. Following these transactions, McMillen's direct ownership in the company stands at 7,200 shares of common stock.
The transactions occurred in a non-derivative form, implying direct ownership and impact on McMillen's stake in the company. Furthermore, the filing indicated that 10,000 stock options were initially granted to McMillen on July 1, 2014, which became exercisable in increments of 2,500 each anniversary of the grant date over four years, with all options being fully vested as of July 1, 2018.
Investors and market watchers often scrutinize Form 4 filings to gauge insider sentiment and potential future stock movements. The sale and acquisition of shares by a company director like McMillen can provide insights into the company's performance and prospects as perceived by its top executives.
Nexstar Media Group, based in Irving, Texas, operates as a television broadcasting and digital media company, with a focus on the acquisition, development, and operation of television stations and interactive community websites in the United States.
The company's stock performance and insider transactions are closely watched by the market, as they can be indicative of the company's strategic direction and financial health. As of the last trading session, Nexstar's stock was traded on the NASDAQ stock exchange under the ticker symbol NXST.
In other recent news, Nexstar Broadcasting Group has been the subject of recent adjustments and predictions from financial analysts and its own management. Deutsche Bank (ETR:DBKGn) recently updated its financial model for Nexstar, leading to a slight decrease in the company's price target from $210.00 to $207.00, maintaining a Buy rating on the stock. This adjustment is reflective of changes in Nexstar's first-quarter performance and management's recent statements about the company's operations.
Nexstar's first-quarter results aligned with revenue expectations and surpassed adjusted EBITDA forecasts by 3.3%. The company also reported record-setting first-quarter net revenue of $1.28 billion, largely due to a high distribution revenue of $761 million. Nexstar's adjusted EBITDA stood at $542 million, with a strong 42.2% margin.
Despite a slight decline in advertising revenue in Q1, Nexstar anticipates improvements in the second quarter, particularly in national advertising. Political advertising has seen a significant increase, with a $31 million rise compared to the same period last year. These are among the recent developments in the company's performance and outlook.
InvestingPro Insights
As Nexstar Media Group, Inc. (NASDAQ:NXST) captures the attention of the market with recent insider transactions, investors may find additional context through key metrics and insights from InvestingPro. A standout feature in the company's financial health is its shareholder-friendly initiatives. InvestingPro Tips highlight that Nexstar's management has been actively engaged in share buybacks, demonstrating confidence in the company's valuation and future prospects. Moreover, the company boasts a high shareholder yield, which is a testament to its commitment to returning value to its investors.
Another noteworthy aspect is Nexstar's consistent dividend payments, with an impressive track record of raising its dividend for 11 consecutive years and maintaining payments for 12 years. This consistency underlines the company's robust financial position and its ability to generate stable cash flows. Additionally, the company's liquid assets surpass its short-term obligations, providing further evidence of financial stability and resilience.
From a valuation standpoint, Nexstar's market capitalization stands at $5.18 billion USD, while its price-to-earnings (P/E) ratio is attractively positioned at 13.25. The adjusted P/E ratio for the last twelve months as of Q1 2024 is even lower at 12.44, suggesting a potentially undervalued stock when compared to industry peers. Furthermore, the company's revenue for the last twelve months as of Q1 2024 is reported at $4.96 billion USD, with a gross profit margin of 57.0%, indicating strong profitability.
For investors seeking further insights and analysis, InvestingPro offers additional tips on Nexstar Media Group. There are currently seven more tips available, which could provide a deeper understanding of the company's performance and potential investment opportunities. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable insights.
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