Nexstar Media Group, Inc. (NASDAQ:NXST) President of Broadcasting Andrew Alford has recently engaged in significant stock transactions, according to the latest regulatory filings. On May 20, Alford sold 998 shares of Nexstar stock, totaling approximately $167,096, with the shares fetching an average price of $167.4314 each.
The sale came on the heels of Alford acquiring 2,500 shares through option exercises on May 17, at a price of $169.56 per share, amounting to a total transaction value of $423,900. Following these transactions, Alford's direct ownership in the company stands at 10,097 shares of common stock.
Additionally, Alford's vested restricted stock units (RSUs) and performance-based restricted stock units (PSUs) were converted into common stock. The RSUs and PSUs, which were awarded three years prior, had met the necessary conditions for conversion as assessed by Nexstar's Compensation Committee.
The recent movements in Alford's holdings provide investors with insight into executive stock transactions at Nexstar. It's noteworthy that these transactions do not necessarily indicate a change in company fundamentals but are part of the regular compensation and investment strategies for executives.
Investors often monitor such insider activities for signals about management's perspective on the company's stock value and performance. Nexstar Media Group, headquartered in Irving, Texas, operates as a leading television broadcasting company, with a reach that extends to millions of households across the United States.
InvestingPro Insights
Nexstar Media Group's (NASDAQ:NXST) recent executive stock transactions coincide with noteworthy financial data and corporate actions that may be of interest to investors. The company's Market Cap stands at $5.32 billion, with a solid P/E Ratio of 13.71, reflecting investor confidence in its earnings capacity. Adjusting for the last twelve months as of Q1 2024, the P/E Ratio tightens slightly to 12.78, suggesting improved earning power relative to its share price.
One InvestingPro Tip highlights that management has been aggressively buying back shares, a move that can signal confidence in the company's value and a commitment to shareholder returns. This is supported by the company's high shareholder yield and a history of raising its dividend for 11 consecutive years. The dividend yield as of the latest data stands at an attractive 4.17%, with a significant dividend growth rate of 25.19% over the last twelve months as of Q1 2024. These elements underscore Nexstar's commitment to shareholder returns.
In terms of stock performance, Nexstar's stock has experienced a notable decline over the last week, with a 1-week price total return of -9.74%. Despite this short-term volatility, the company has been profitable over the last twelve months and analysts predict it will continue to be profitable this year. With liquid assets surpassing short-term obligations, Nexstar appears to be in a healthy financial position.
For readers interested in a deeper dive into Nexstar's financial health and future prospects, there are 9 additional InvestingPro Tips available at https://www.investing.com/pro/NXST. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and gain comprehensive insights into Nexstar's investment potential.
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