Nexstar Media Group, Inc. (NASDAQ:NXST) director John R. Muse sold shares of the company's stock on June 4, 2024, according to the latest SEC filings. The transaction involved the sale of 365 shares at a price of $160.0 each, amounting to a total value of $58,400.
The sale was executed at a consistent price point, with no variation in the cost per share. Following the transaction, Muse's direct ownership in the company stands at 27,613 shares. The recent sale by the director has been made public through the mandatory regulatory filing with the Securities and Exchange Commission.
Nexstar Media Group, headquartered in Irving, Texas, operates as a television broadcasting company under the industrial classification of Television Broadcasting Stations. This transaction comes amidst the company's ongoing business activities in the media sector.
Investors and market watchers often pay close attention to insider sales as they may provide insights into the executive's perspective on the company's current valuation and future prospects. However, it is also common for executives to sell shares for personal financial management reasons unrelated to their outlook on the company.
The details of the sale were formalized by Mark Hoyla, Attorney-in-Fact for John R. Muse, as indicated by the signature on the SEC filing dated June 5, 2024. The company has not provided any additional comments or context regarding the transaction at this time.
In other recent news, Nexstar Media Group has seen significant developments. The company reported record-setting first-quarter net revenue of $1.28 billion, bolstered by high distribution revenue of $761 million. Adjusted EBITDA stood at $542 million, a strong 42.2% margin. Despite a slight decrease in advertising revenue in Q1, Nexstar anticipates improvements in the second quarter, particularly in national advertising. Political advertising significantly increased, rising by $31 million compared to the same period last year.
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, while maintaining a Buy rating. The bank's revisions take into account Nexstar's updated calculation of adjusted EBITDA and adjusted free cash flow (FCF). The guidance for 2024 EBITDA is now expected to be between $2.14 billion and $2.25 billion, which is equivalent to the previous quarter's forecast.
These recent developments reflect Nexstar's strong start to 2024 and the company's confidence in its business and long-term growth prospects. As always, Nexstar continues to focus on delivering value to its stakeholders.
InvestingPro Insights
As Nexstar Media Group, Inc. (NASDAQ:NXST) sees insider activity with director John R. Muse selling a portion of his holdings, investors are looking at the company's financial health and future prospects with keen interest. Nexstar's market capitalization currently stands at approximately $5.2 billion, reflecting the scale of its operations within the television broadcasting space.
The company's commitment to returning value to shareholders is evident through a series of financial decisions. An InvestingPro Tip highlights that management has been aggressively buying back shares, which could be a signal of confidence in the company's intrinsic value. Additionally, Nexstar has a track record of rewarding shareholders, having raised its dividend for 11 consecutive years and maintained dividend payments for 12 consecutive years, showcasing a stable and growing income stream for investors.
Looking at the company's performance metrics, Nexstar's P/E ratio as of the last twelve months leading up to Q1 2024 is 12.47, which may appeal to value-oriented investors seeking lower multiple companies. The dividend yield as of mid-May 2024 stands at a robust 4.27%, which is particularly attractive for income-focused portfolios. Furthermore, with a gross profit margin of 57.0% during the same period, Nexstar demonstrates its ability to maintain profitability in its operations.
For investors interested in a deeper dive into Nexstar's financials and additional insights, there are more InvestingPro Tips available that discuss aspects such as the company's profitability projections for the year and its high return over the last decade. To access these insights and more, visit https://www.investing.com/pro/NXST and use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 7 additional tips listed in InvestingPro that could further inform investment decisions regarding Nexstar Media Group.
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