Nexstar’s Post-Xmas Power Play On Wall Street

0

Investors who purchased Nexstar Media Group shares on Christmas Eve have some celebrating to do.


With minutes remaining in Wednesday’s trading session, NXST was on its way toward its record high price of $110.49, seen on March 28. That’s a nearly $40 per share profit.

On lower-than-average trading volume, Nexstar closed at $110.27.

This compares to a $71.81 finish for NXST seen on December 24, capping off a month that began with shares at $83.50.

But, historical trends for Nexstar point to strong growth after short-term drops. This seems to be the case now for the company founded by Perry Sook more than 25 years ago with the acquisition of a Scranton, Pa. TV station.

The growth comes after Simply Wall St. on Tuesday noted that insiders have been selling Nexstar shares … over the last 12 months.

Director Jay Grossman made the biggest insider sale in the last 12 months. That single transaction was for $1.6 million worth of shares at a price of $108 each. “It’s clear an insider wanted to take some cash off the table, even slightly below the current price of $109,” Simply Wall St. says. “Even though it doesn’t necessarily mean anything, that’s certainly not a positive sign, in our book. As a general rule we consider it to be discouraging when insiders are selling below the current price.”

Further, Simply Wall St. believes it’s worth noting that this sale “was only 30% of Jay Grossman’s holding.”

That could be why the market largely shrugged on the report.

Nexstar insiders sold 38,610 shares worth $3.8 million.

In total, Nexstar Media Group insiders sold more than they bought over the last year. The sellers received a price of around $98.44, on average.

In fact, the last three months “saw significant insider selling” at Nexstar. In total, insiders sold $2.9 million worth of shares in that time, and Simply Wall St. did not record any purchases during the same period.