IRVING, Texas – Nexstar Media Group, Inc. (Nasdaq: NASDAQ), a diversified media company, today announced a quarterly cash dividend of $1.69 per share, payable on August 23, 2024, to shareholders of record through August 9, 2024. Additionally, the company’s board of directors approved a new share repurchase program of up to $1.5 billion of its common stock, supplementing the existing repurchase plan from July 2022, which still has $496 million outstanding as of May 8, 2024.
The company, which owns the largest local television broadcast group in America, including 200 stations in 117 U.S. markets, intends to continue paying regular quarterly cash dividends. However, future dividends will be subject to quarterly review and discretion of the board of directors.
The new share repurchase program, which is also subject to the discretion of the Board of Directors, will be subject to regulatory restrictions. This repurchase plan represents Nexstar’s ongoing commitment to enhancing shareholder value and reflects the company’s confidence in its financial strength and future business prospects.
Nexstar’s portfolio includes The CW, a major broadcast network; NewsNation, a national news network; and popular entertainment broadcast networks Antenna TV and Rewind TV. The company also has a 31.3% ownership stake in TV Food Network. Its digital assets, including local TV station websites, The Hill and NewsNationNow.com, collectively rank among the top 10 digital news and information sites in the United States.
Nexstar Media Group reported record first-quarter net revenue of $1.28 billion, driven by high distribution revenue of $761 million. The company also saw a significant increase in political ad revenue, up $31 million compared to the same period last year. Despite a slight decline in ad revenue in the first quarter, an improvement is expected in the second quarter, particularly in national advertising.
Nexstar Inc. has announced the appointment of Lloyd Butcher as its new vice president and general manager of its Philadelphia operations. Butcher, a Philadelphia native with nearly three decades of industry experience, is expected to bring his expertise to the new role.
In analyst news, Deutsche Bank updated its financial model for Nexstar, slightly lowering the company’s price target from $210.00 to $207.00. The revision reflects Nexstar’s first-quarter performance and recent announcements about the company’s operations.
InvestingPro Insights
Nexstar Media Group’s commitment to shareholder returns is evident in its strong financial health and strategic management decisions. With a market cap of $5.82 billion and a positive adjusted P/E ratio of 13.96 over the past twelve months as of Q1 2024, the company offers a compelling value proposition. Investors may find the company’s consistent dividend payments particularly attractive; Nexstar has raised its dividend for 11 consecutive years and maintained payments for 12 consecutive years, highlighting a reliable income stream.
It is worth noting that Nexstar’s management has shown its confidence in the company’s prospects through aggressive share buybacks, as indicated by the recent $1.5 billion authorization. This is in line with InvestingPro’s advice that management is actively repurchasing shares, a move that can often signal leadership’s belief in the company’s undervalued stock and commitment to capital return strategies. Additionally, Nexstar’s liquidity position is strong, with liquid assets exceeding short-term liabilities, providing a cushion for future operational needs and investments.
For readers looking to dig deeper into Nexstar’s financial position and future prospects, InvestingPro offers a range of additional tips, including insights into the company’s profitability, trading trends, and analyst forecasts. There are 9 additional InvestingPro tips available from Nexstar Media Group, which can be accessed by visiting: https://www.investing.com/pro/NXST. To enhance your investment research with these insights, use coupon code Pro News 24 Get up to 10% off your Pro annual subscription and Pro+ annual or semi-annual subscription.
Looking at the company’s performance, Nexstar has shown a strong return over the past month, with a total price return of 13.07%, and is trading near its 52-week high, at 94.61% of its peak price. The combination of a strong dividend yield, currently at 3.81%, and a history of earnings growth, which has seen a significant increase of 25.19% over the past twelve months as of Q1 2024, positions Nexstar as an attractive option for income-focused investors.
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