Nexstar Media Group, Inc. (NASDAQ:NXST) executive Gary Weitman, who serves as the company's EVP and Chief Communications Officer, has recently engaged in transactions involving the company's common stock. According to the latest filings, Weitman sold 528 shares at a price of $160 each, totaling $84,480.
The transactions took place on June 4, 2024, and followed an acquisition of shares by Weitman on June 3, 2024, where he exercised options to buy 1,313 shares at a price of $163.09 per share, amounting to a total of $214,137. It should be noted that the exercise of options is a common practice for company executives and does not necessarily indicate a change in the executive's view of the company's prospects.
Additionally, Weitman's transactions involved restricted stock units (RSUs). Specifically, on June 3, 2024, he had 1,313 RSUs vested, which are converted into an equal number of common stock shares upon vesting, as per the company's policy. The vesting of these RSUs is part of a time-based award granted on June 3, 2022, which vests in equal parts over four years.
Following these transactions, Weitman's direct ownership in Nexstar Media Group stands at 11,687 shares of common stock and 2,625 shares underlying vested RSUs. It's important to note that these filings are standard disclosures and do not necessarily indicate a change in the executive's long-term confidence in the company.
Investors often monitor such insider transactions as they may provide insights into an executive's perspective on the company's valuation and future prospects. However, these transactions are part of normal stock compensation practices and can be influenced by various factors, including personal financial planning.
Nexstar Media Group, headquartered in Irving, Texas, is a leading diversified media company with a focus on television broadcasting. The company's stock performance and insider trading activities are closely watched by investors seeking to understand market trends and company health.
In other recent news, Nexstar Broadcasting Group has been in the spotlight due to its first-quarter financial performance and adjustments to its price target by Deutsche Bank (ETR:DBKGn). The company's Q1 results aligned with revenue expectations, surpassing adjusted EBITDA forecasts by 3.3%. Deutsche Bank has revised the company's price target from $210.00 to $207.00, maintaining a Buy rating on the stock. This adjustment is based on changes in Nexstar's Q1 performance and recent statements from the company's management about its operations.
Nexstar kicked off 2024 with a robust start, posting record-setting Q1 net revenue of $1.28 billion, backed by a high distribution revenue of $761 million. The company's adjusted EBITDA stood at a strong 42.2% margin. Despite a slight decline in advertising revenue, Nexstar expects improvements in the second quarter, particularly in national advertising.
These are recent developments that highlight the company's financial health and future prospects. Nexstar's management has indicated that changes to the calculation of adjusted EBITDA and adjusted free cash flow would have a positive effect, increasing the reported EBITDA by $52 million for the year. The guidance for 2024 EBITDA is 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
Nexstar Media Group's (NASDAQ:NXST) executive Gary Weitman's recent stock transactions come at a time when the company exhibits a mix of financial stability and shareholder value. With a market capitalization of $5.2 billion and a price-to-earnings (P/E) ratio of 13.39, which adjusts to a slightly lower 12.47 on a last twelve months basis as of Q1 2024, Nexstar appears to be valued reasonably in the market. The company's dividend yield stands at an attractive 4.27%, reflecting a significant 25.19% dividend growth over the last twelve months, which aligns with the company's history of increasing its dividend for 11 consecutive years and maintaining dividend payments for 12 consecutive years.
An InvestingPro Tip highlights that Nexstar's management has been aggressively buying back shares, indicating confidence in the company's valuation and future prospects. Additionally, analysts predict the company will be profitable this year, which is supported by a solid gross profit margin of 57.0% as of the last twelve months ending Q1 2024. These factors, combined with the fact that Nexstar's liquid assets exceed short-term obligations, suggest a robust financial position that may be appealing to investors.
For those looking to delve deeper into Nexstar's financials and performance metrics, InvestingPro offers a wealth of additional insights. There are 7 more InvestingPro Tips available, which can provide a more comprehensive view of the company's investment potential. Interested investors can take advantage of a special offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/NXST.
As Weitman's recent transactions reflect a routine part of stock compensation, investors might consider these broader financial metrics and InvestingPro Tips to gain a more nuanced understanding of Nexstar Media Group's investment profile.
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