In recent trading activity, Blake Russell, the Executive Vice President of Operations at Nexstar Media Group, Inc. (NASDAQ:NXST), sold a portion of his holdings in the company. The transaction, which took place on May 20, 2024, involved the sale of 433 shares of common stock at an average price of $167.43, netting a total of $72,497.
This sale followed a transaction on May 17, where Russell acquired 1,750 shares at a price of $169.56 per share, amounting to a total of $296,730. These shares were non-derivative securities, directly owned following the transaction, and increased his holdings to a total of 25,970 shares of Nexstar Media Group's common stock.
In addition to the non-derivative transactions, derivative securities in the form of Restricted Stock Units (RSUs) were also reported. Each RSU is converted into one share of Nexstar's Common Stock upon vesting. Russell had 1,750 RSUs vested on May 17, as part of an award granted on May 17, 2021. These RSUs vest annually over four years and will be fully vested by May 17, 2025, provided that Russell remains employed with the company. It is noted that these RSUs do not have an expiration date, but any unvested portion will be forfeited if Russell's employment is terminated for reasons other than a company change of control.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission. Following these transactions, Russell's direct ownership in Nexstar Media Group represents a significant stake in the company, aligning his interests with those of shareholders.
Investors often monitor insider trading activities like these to gain insight into the confidence levels of a company's executives and their outlook on the company's future performance. Insider sales and purchases can be part of normal portfolio management or may relate to personal financial planning. In this case, the sale represents a small fraction of Russell's total holdings in the company.
InvestingPro Insights
As investors digest the recent insider trading activity at Nexstar Media Group, Inc. (NASDAQ:NXST), it's crucial to consider the broader financial health and market performance of the company. Nexstar's management has demonstrated confidence in the company's value, as indicated by aggressive share buybacks. This is often a sign that leadership believes the stock is undervalued and is a positive signal to investors. Additionally, the company boasts a high shareholder yield and has a commendable track record of raising its dividend for 11 consecutive years, suggesting a commitment to returning value to shareholders.
Turning to the real-time metrics from InvestingPro, Nexstar Media Group holds a market capitalization of $5.32 billion USD. The company's P/E ratio stands at 13.71, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at a slightly lower 12.78. This could indicate that the stock is reasonably valued compared to earnings. Moreover, the dividend yield as of the latest data is at a robust 4.17%, which is attractive to income-focused investors, especially considering the 25.19% dividend growth in the same period.
While the stock has experienced a significant drop over the past week, with a one-week total return of -9.74%, it's important to note that Nexstar has been profitable over the last twelve months and analysts predict it will remain profitable this year. For investors seeking additional insights and tips on Nexstar Media Group, there are 6 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/NXST. To enrich your investment strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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