Nexstar Media Group, Inc. (NASDAQ:NXST) CEO Perry Sook recently sold 35,205 shares of the company's common stock. The transaction, which took place on December 17, 2024, was executed at an average price of $162.13 per share, amounting to a total sale of approximately $5.7 million. The sale comes as InvestingPro data shows Nexstar trading at an attractive P/E ratio of 9.07, with analysts setting price targets between $175-$220.
In addition to the sale, Sook exercised stock options to acquire 35,205 shares at a price of $47.11 per share on the same day. Following these transactions, Sook directly owns 674,694 shares of Nexstar Media's common stock. Additionally, through PS Sook Ltd., a family-owned entity, Sook indirectly holds 975,956 shares.
These moves come as part of routine financial management for the executive, whose leadership role includes both director and officer responsibilities at Nexstar Media.
In other recent news, Nexstar Media Group reported record-breaking third-quarter net revenue of $1.37 billion, marking a 20.7% increase from the previous year. The surge in revenue was primarily fueled by a substantial increase in political advertising revenue, which reached $491 million year-to-date, and a significant boost in distribution revenue, hitting an all-time high of $719 million. The company managed to return a considerable $590 million to shareholders through dividends and share repurchases, simultaneously reducing its debt by $146 million and outstanding shares by 6.3%.
Nexstar's diversified media platform, including 200 broadcast stations and The CW network, played a crucial role in these recent developments. However, it's worth noting that the company experienced a 4.5% decline in nonpolitical advertising and a decrease in national revenue. Despite these challenges, Nexstar secured significant affiliation renewals, including a deal with CBS for 42 markets, and anticipates future growth, particularly in political advertising and potential industry deregulation.
Analysts maintain a positive outlook for Nexstar, noting the company's successful programming strategies in sports and news, which led to The CW achieving record audiences. They also highlighted the company's focus on enhancing shareholder value through consolidation and improved local news reporting. However, bearish highlights include a decline in the Auto category due to low dealer inventory and high interest rates. These are some of the recent developments shaping Nexstar's financial landscape.
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