On June 28, 2023, Rachel Morgan, the Executive Vice President and General Counsel of Nexstar Media Group Inc (NXST, Financial), sold 937 shares of the company. This move is part of a broader trend of insider selling at Nexstar Media Group Inc, which we will explore in more detail in this article.
Rachel Morgan has been with Nexstar Media Group Inc for several years, serving in various legal and executive roles. As the EVP General Counsel, she is responsible for overseeing all legal matters within the company, including compliance with laws and regulations, litigation, and corporate governance. Her insider trading activities provide valuable insights into the company's financial health and future prospects.
Nexstar Media Group Inc 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. Its portfolio includes primary affiliates of NBC, CBS, ABC, FOX, MyNetworkTV, and The CW. The company's digital media operations focus on emerging media and technologies and services, including websites, apps, and digital advertising services.
Over the past year, Rachel Morgan has sold 937 shares in total and purchased 0 shares in total. This trend of selling without any offsetting purchases raises questions about her confidence in the company's future performance.
The insider transaction history for Nexstar Media Group Inc shows that there have been 0 insider buys in total over the past year. Meanwhile, there have been 41 insider sells over the same timeframe. This trend of insider selling could be a red flag for potential investors, as it may indicate a lack of confidence in the company's future prospects.
Shares of Nexstar Media Group Inc were trading for $163.77 apiece on the day of Rachel Morgan’s recent sell, giving the stock a market cap of $6.019 billion. The price-earnings ratio is 7.86, which is lower than the industry median of 17.78 and lower than the company’s historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers and its own historical performance.
With a price of $163.77 and a GuruFocus Value of $198.10, Nexstar Media Group Inc has a price-to-GF-Value ratio of 0.83. 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 historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, while the recent insider selling at Nexstar Media Group Inc may raise some concerns, the company's stock appears to be modestly undervalued based on its GF Value. Investors should keep a close eye on the company's financial performance and insider trading activities to make informed investment decisions.
