Lynn B. Trelstad, Executive Vice President and Chief Operating Officer of Media Operations at Tegna Inc . (NYSE:TGNA), recently sold 25,000 shares of the company's common stock. The shares were sold at a price of $16.40 each, amounting to a total transaction value of $409,999. This sale was executed on October 25, 2024, under a Rule 10b5-1 trading plan that Trelstad adopted on March 6, 2024.
Following this transaction, Trelstad holds 154,616.535 shares directly. Additionally, she has indirect holdings of 10,827.567 shares through a 401(k) plan, 31,438.692 shares by her spouse, and 6,181.852 shares through her spouse's 401(k) plan.
In other recent news, TEGNA (NYSE:TGNA) Inc. reported a decrease in total company revenue for Q2 2024, primarily due to subscriber losses and a weaker national advertising market. However, resilience was noted in TEGNA's local advertising sector, particularly its connected TV sales platform, Premion. The company also anticipates a rise in third-quarter revenue due to political ads and the Olympics, and maintains its adjusted free cash flow guidance of $900 million to $1.1 billion for 2024-2025.
TEGNA has also entered into a new multi-year broadcast rights agreement with the Dallas Mavericks, expanding the team's television reach to an estimated 10 million people in Texas. This deal will significantly increase the number of households able to watch the Mavericks play.
In terms of executive changes, TEGNA announced the upcoming departure of Senior Vice President and Chief Legal Officer Lauren S. Fisher, effective September 6, 2024. Simultaneously, the company appointed Jim Kizer as president and general manager of its Des Moines, Iowa stations WOI and KCWI.
Benchmark has reiterated a Buy rating on TEGNA, highlighting the recent performance of TEGNA's shares. The firm pointed out that the same national trends affecting other companies with strong balance sheets in the market could impact TEGNA, especially given its extensive market reach.
Lastly, TEGNA announced that Lynn Beall, its executive vice president and chief operating officer of media operations, will leave the company in mid-2025. This announcement marks the beginning of a significant transition for TEGNA as the company prepares to evolve its strategic approach.
InvestingPro Insights
While Lynn B. Trelstad's recent stock sale might raise eyebrows, a closer look at Tegna Inc.'s (NYSE:TGNA) financial metrics and market performance reveals a more nuanced picture. According to InvestingPro data, Tegna's stock is trading near its 52-week high, with a price at 98.1% of its peak. This suggests strong market confidence in the company's performance.
Tegna's financial health appears robust, with a P/E ratio of 6.88, indicating that the stock may be undervalued relative to its earnings. The company's dividend yield stands at 3.09%, which is particularly noteworthy given that Tegna has maintained dividend payments for 54 consecutive years, as highlighted by an InvestingPro Tip. This long-standing commitment to shareholder returns is further reinforced by management's aggressive share buyback program, another InvestingPro Tip that points to the company's focus on enhancing shareholder value.
Despite a 10.29% revenue decline in the last twelve months, Tegna maintains a healthy gross profit margin of 39.86% and an operating income margin of 19.7%. These figures suggest that the company is managing its costs effectively even in the face of revenue challenges. The company's market capitalization stands at $2.74 billion, reflecting its significant presence in the media industry.
Investors considering Tegna might find additional value in exploring the full range of InvestingPro Tips, which includes 7 more insights not mentioned here. These tips could provide a more comprehensive understanding of Tegna's financial position and future prospects.
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