Insiders At Nexstar Media Group Sold US$12m In Stock, Alluding To Potential Weakness

The fact that multiple Nexstar Media Group, Inc. (NASDAQ:NXST) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Nexstar Media Group

The Last 12 Months Of Insider Transactions At Nexstar Media Group

The Independent Director, Jay Grossman, made the biggest insider sale in the last 12 months. That single transaction was for US$1.7m worth of shares at a price of US$171 each. So we know that an insider sold shares at around the present share price of US$156. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Nexstar Media Group insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Nexstar Media Group Insiders Are Selling The Stock

The last three months saw significant insider selling at Nexstar Media Group. Specifically, insiders ditched US$1.5m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Nexstar Media Group insiders own about US$303m worth of shares (which is 6.3% of the company). 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 Does This Data Suggest About Nexstar Media Group Insiders?

Insiders sold Nexstar Media Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Nexstar Media Group makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Nexstar Media Group is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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