Nexstar Media Group, Inc. (NASDAQ:NXST) director Charles Thomas McMillen has sold company shares valued at more than $244,000, according to the latest SEC filings. The transactions took place on March 13, with the stock sold at an average price of approximately $166.
The sale consisted of 1,475 shares of common stock, significantly trimming McMillen's holdings in the company. Following the sale, the director still owns 4,525 shares of Nexstar Media Group stock. The sale price of the stock ranged around $166, which when multiplied by the number of shares sold, results in a total transaction value of approximately $244,847.
In the same filing, it was also reported that McMillen acquired 2,500 shares through the exercise of options, with a reported value of $131,350 based on the exercise price of $52.54 per share. This transaction expanded his direct ownership in the company to 6,000 shares.
The options exercised by McMillen were part of a grant of 10,000 options on July 1, 2014. These options became exercisable in increments of 2,500 each anniversary of the grant date over four years and were fully vested as of July 1, 2018.
Investors often monitor insider transactions as they provide insights into how executives and directors view the company's stock value and potential future performance. The recent transactions by McMillen demonstrate a balance of cashing in on some investments while maintaining a significant stake in the company.
Nexstar Media Group, headquartered in Irving, Texas, is a leading player in the television broadcasting industry. The company's shares are traded on the NASDAQ stock exchange under the ticker symbol NXST.
InvestingPro Insights
Nexstar Media Group's recent insider transactions have caught the attention of investors seeking to understand the signals these moves send about the company's valuation and future prospects. The sale by director Charles Thomas McMillen, juxtaposed with his acquisition of shares through the exercise of options, paints a mixed picture that merits a closer look through the lens of InvestingPro data and insights.
With a market capitalization of $5.57 billion and an adjusted P/E ratio of 14.29 for the last twelve months as of Q4 2023, Nexstar Media Group appears to be valued at a level that could interest value-oriented investors. This valuation is bolstered by a high shareholder yield, a signal often associated with a commitment to returning value to investors, as reflected by the company's 11-year streak of raising dividends. The recent dividend growth rate of 87.78% is particularly striking, suggesting that Nexstar is not only maintaining but significantly increasing its dividend payouts.
A notable InvestingPro Tip for Nexstar is that management has been actively engaging in share buybacks, a move that can often indicate leadership's confidence in the company's undervalued stock price and future growth potential. Additionally, the company's strong free cash flow yield, highlighted by another InvestingPro Tip, supports the argument for a solid investment base.
For those interested in a deeper dive into Nexstar Media Group's financial health, the InvestingPro platform offers additional tips, including insights on stock price volatility, profitability predictions for the year, and a comparison of liquid assets to short-term obligations. In fact, there are 9 more InvestingPro Tips available for NXST at https://www.investing.com/pro/NXST, which could provide further clarity on the company's financial standing and market position.
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