On June 7, 2023, President and COO Thomas Carter sold 10,000 shares of Nexstar Media Group Inc (NXST, Financial). Thomas Carter has been with the company since 2009 and has played a significant role in the growth and expansion of Nexstar Media Group Inc. The company is a leading diversified media company that leverages localism to bring new services and value to consumers and advertisers through its traditional media, digital, and mobile media platforms.
Over the past year, Thomas Carter has sold a total of 79,525 shares and purchased 0 shares. This recent transaction is part of a broader trend of insider selling in the company. In the past year, there have been 0 insider buys and 40 insider sells for Nexstar Media Group Inc.
The insider transaction history for Nexstar Media Group Inc shows a clear trend of insider selling over the past year. This could be an indication that insiders believe the stock is overvalued or that they are taking profits after a period of strong stock performance. However, it is essential to consider other factors, such as the company's valuation and overall market conditions, before drawing any conclusions.
On the day of Thomas Carter's recent sell, shares of Nexstar Media Group Inc were trading at $166.25, giving the stock a market cap of $5.93 billion. The price-earnings ratio is 7.83, which is lower than the industry median of 18.08 and lower than the company's historical median price-earnings ratio.
With a price of $166.25 and a GuruFocus Value of $198.14, Nexstar Media Group Inc has a price-to-GF-Value ratio of 0.84. This means the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
Despite the recent insider selling, the stock's modest undervaluation suggests that there may still be potential for future gains. Investors should consider the company's financial performance, growth prospects, and overall market conditions before making any investment decisions.
In conclusion, the recent insider selling by President and COO Thomas Carter of Nexstar Media Group Inc may raise some concerns for investors. However, the stock's modest undervaluation and the company's strong financial performance and growth prospects should not be overlooked. Investors should carefully consider all factors before making any investment decisions.
