Have Nexstar Media Group Insiders Been Selling Stock?

Some Nexstar Media Group, Inc. (NASDAQ:NXST) shareholders may be a little concerned to see that insider Sean Compton recently sold a substantial US$631k worth of stock at a price of US$161 per share. That's a big disposal, and it decreased their holding size by 27%, which is notable but not too bad.

See our latest analysis for Nexstar Media Group

The Last 12 Months Of Insider Transactions At Nexstar Media Group

In the last twelve months, the biggest single sale by an insider was when the President of Distribution & Strategy, Dana Zimmer, sold US$852k worth of shares at a price of US$162 per share. That means that even when the share price was slightly below the current price of US$164, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 75% of Dana Zimmer's stake.

Insiders in Nexstar Media Group didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Nexstar Media Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Nexstar Media Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Nexstar Media Group insiders own 6.2% of the company, currently worth about US$330m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Nexstar Media Group Insider Transactions Indicate?

Insiders haven't bought Nexstar Media Group stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Nexstar Media Group (1 shouldn't be ignored!) that we believe deserve your full attention.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.