Some Nexstar Media Group, Inc. (NASDAQ:NXST) shareholders may be a little concerned to see that the Executive VP, Rachel Morgan, recently sold a substantial US$1.1m worth of stock at a price of US$171 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At Nexstar Media Group
In fact, the recent sale by Rachel Morgan was the biggest sale of Nexstar Media Group shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$171. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
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. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Nexstar Media Group insiders own about US$342m worth of shares (which is 6.2% 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. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for Nexstar Media Group (1 is potentially serious!) and we strongly recommend you look at these before investing.
But note: Nexstar Media Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.