In a recent transaction on June 7th, Tegna Inc (NYSE:TGNA) EVP and COO, Lynn B. Trelstad, sold a total of 25,000 shares of the company's stock, according to the latest SEC filings. The shares were sold at an average price of $13.99, amounting to a total value of $349,750.
The sale was conducted under a prearranged 10b5-1 trading plan, which allows company insiders to set up a schedule for selling stocks they own in advance. This can help to avoid concerns about insider trading, as the sales are planned when the insider does not have any private knowledge that could influence the stock price.
Following the sale, Trelstad still owns a significant number of shares directly, with a disclosed ownership of 190,474 shares following the transaction. Additionally, Trelstad has indirect holdings through a 401(k) plan amounting to 10,135.398 shares and 6,002.73 shares owned indirectly by the spouse through a 401(k) plan. The spouse also directly owns 27,384 shares.
Investors often monitor insider sales as they can provide insights into an insider’s view of the company's stock value. However, it is important to note that selling shares does not necessarily indicate a lack of confidence in the company. Insiders might sell stock for various reasons, such as diversifying their portfolio or meeting personal financial goals.
Tegna Inc, headquartered in Tysons, Virginia, operates in the television broadcasting industry and is known for its strong presence in the media sector. The company's stock trades on the New York Stock Exchange under the ticker symbol TGNA.
In other recent news, TEGNA (NYSE:TGNA) Inc. reported mixed results for Q1 of 2024. Despite a 4% decrease in total revenue, primarily due to a decline in subscription revenue, the company returned over $100 million to its shareholders and increased its quarterly dividend by 10%. TEGNA also completed the acquisition of Octillion Media, a move aimed at fostering growth in its Premion OTT sales platform.
In the face of a downturn in national advertising, TEGNA expressed optimism about local advertising and the upcoming Summer Olympic Games, forecasting sequential improvement in Q2 and throughout the year. Analysts from the firm also highlighted the company's anticipation of $90 million to $100 million in annualized cost savings by the end of 2025 due to its business transformation initiatives.
TEGNA reaffirmed its full-year 2024 guidance metrics and expects revenue to be down low- to mid-single digits year-over-year in Q2. Despite a 9% drop in subscription revenue, the company's Premion platform experienced low single-digit revenue growth, driven by strong local revenue. These are recent developments that investors should consider.
InvestingPro Insights
In light of the recent insider transaction at Tegna Inc (NYSE:TGNA), where EVP and COO Lynn B. Trelstad sold shares, it's important for investors to consider additional financial metrics and insights that could influence the company's stock value. Here are some key InvestingPro Data and Tips:
InvestingPro Data reveals that Tegna Inc has a market capitalization of approximately $2.35 billion, and it trades at a P/E ratio of 4.85, with an adjusted P/E ratio for the last twelve months as of Q1 2024 standing at 6.84. This suggests that the company is trading at a low price relative to its near-term earnings growth. Additionally, the company's revenue for the same period was $2.88 billion, despite a decline in revenue growth by 11.11%.
An InvestingPro Tip highlights that Tegna Inc has been consistent with its dividends, having raised them for 3 consecutive years and maintained payments for 54 consecutive years. This consistency in dividend payments, coupled with a strong dividend yield of 3.53%, could be a sign of the company's commitment to returning value to shareholders.
Moreover, the company is currently trading near its 52-week low, which could represent a potential entry point for investors considering the stock's valuation and its strong free cash flow yield, as indicated by another InvestingPro Tip.
For those looking to delve deeper into Tegna Inc's financial health and future prospects, InvestingPro offers additional tips. There are currently 8 more InvestingPro Tips available, which can provide further insights into the company's performance and valuation. Interested investors can explore these by visiting https://www.investing.com/pro/TGNA and can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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