Perry A. Sook, the Chief Executive Officer of Nexstar Media Group, Inc. (NASDAQ:NXST), recently executed a significant stock transaction. According to a Form 4 filing with the Securities and Exchange Commission, Sook sold 12,239 shares of Nexstar Media's common stock on November 7, 2024, at an average price of $190.28 per share. This sale amounted to approximately $2.3 million.
The transaction was conducted under a pre-established Rule 10b5-1 trading plan, which Sook adopted on December 26, 2023. Prior to the sale, Sook exercised stock options to acquire the same number of shares at a price of $47.11 per share, resulting in a total acquisition cost of $576,579.
Post-transaction, Sook directly owns 674,694 shares of Nexstar Media Group's common stock. Additionally, he holds 975,956 shares indirectly through PS Sook Ltd., a company beneficially owned by Sook and his spouse.
In other recent news, Nexstar Media Group reported record-breaking third-quarter net revenue, reaching an all-time high of $1.37 billion, marking a substantial 20.7% increase year-over-year. This growth was primarily fueled by a surge in political advertising revenue, which totaled $491 million year-to-date, and a significant rise in distribution revenue, peaking at $719 million. Additionally, Nexstar returned a considerable $590 million to shareholders, simultaneously reducing its debt by $146 million.
The company demonstrated financial robustness by reducing its outstanding shares by 6.3%. Despite a 4.5% decline in non-political advertising, political advertising revenue saw a dramatic increase to $154 million, a $135 million surge year-over-year. The company also secured significant affiliation renewals, including a deal with CBS for 42 markets.
These recent developments highlight the company's strategic positioning in the industry and its commitment towards returning value to shareholders. Nexstar continues to maintain a diversified media platform, which includes 200 broadcast stations and The CW network. However, it's important to note that cash contributions from partners in The CW were zero, contrasting with $11 million in Q3 2023. Despite these challenges, Nexstar remains optimistic about future growth, particularly in political advertising and potential industry deregulation.
InvestingPro Insights
Perry A. Sook's recent stock transaction aligns with Nexstar Media Group's broader financial picture, as revealed by InvestingPro data. The company's stock is currently trading at a P/E ratio of 9.62, which is relatively low compared to its growth prospects. This valuation metric is complemented by an InvestingPro Tip indicating that Nexstar is "Trading at a low P/E ratio relative to near-term earnings growth," suggesting potential undervaluation.
Nexstar's financial health is further underscored by its dividend performance. The company boasts a dividend yield of 3.95% and has demonstrated impressive dividend growth of 25.19% over the last twelve months. An InvestingPro Tip highlights that Nexstar "Has raised its dividend for 12 consecutive years," reflecting a strong commitment to shareholder returns.
The company's profitability is also noteworthy, with a gross profit margin of 58.38% and an operating income margin of 22.19% for the last twelve months as of Q3 2024. These figures suggest robust operational efficiency and profit generation capabilities.
For investors seeking more comprehensive insights, InvestingPro offers 10 additional tips for Nexstar Media Group, providing a deeper analysis of the company's financial position and market performance.
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