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5 insiders sold Nexstar stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

3 of these 5 insiders decreased their holdings by more than 10%.

Nexstar Broadcasting Group (NASDAQ:NXST) operates as a television broadcasting and digital media company in the United States.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of Nexstar's insider activity during the last 30 days.

NameTitleTrade DateShares SoldOption Exercise & SaleRule 10b5-1Current OwnershipDecrease In Ownership
Julie PruettSVPJune 255,000YesNo3,695
shares + 55,000 options
Lisbeth McNabbDirectorJune 251,250YesNo0 shares + 5,250 options19.2%
Elizabeth HammondSVPJune 251,000YesNo730 shares + 29,000 options3.3%
Brian JonesEVPJune 2530,000YesNo10,500
shares + 68,000 options
Perry SookCEOJune 25223,141YesNo925,956
shares + 976,859 options

There have been 260,391 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Nexstar's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
June 2014260,3910
May 201400
April 201400
March 20146,2300
February 201400
January 201400
December 201340,0000
November 201395,0000
October 201300
September 2013394,2500
August 20139100
July 201300
June 2013483,0000
May 20133,943,3760
April 201300
March 201384,983184
February 20133,450,0000
January 201300

There have been 8,758,140 shares sold and there have been 184 shares purchased by insiders since January 2013. The month of June has seen the most insider selling this year.


Nexstar reported the first-quarter financial results on May 8 with the following highlights:

Revenue$133.8 million
Net income$7.4 million
Cash$50.6 million
Debt$1.1 billion

(click to enlarge)

(Source: Investor presentation)

The stock spiked up $5 on June 25 following the Supreme Court ruling against Aereo. The five insiders sold their shares after the spike.


Nexstar expects to generate free cash flow in excess of $350 million during the 2014/2015 cycle.

(click to enlarge)

(Source: Investor presentation)


Nexstar's competitors include Gannett (NYSE:GCI), and Sinclair Broadcast Group (NASDAQ:SBGI). Here is a table comparing these companies.

Market Cap:1.53B6.97B3.37B
Qtrly Rev Growth (yoy):
Gross Margin:0.700.450.56
Operating Margin:
Net Income:4.86M343.27M72.43M
PEG (5 yr expected):9.871.155.75

Nexstar has the highest P/S ratio among these three companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares

Only Nexstar has seen intensive insider selling during the last 30 days.


There have been five different insiders selling Nexstar and there have not been any insiders buying Nexstar during the last 30 days. Three of these five insiders decreased their holdings by more than 10%. Nexstar has an insider ownership of 7.90%.

Before going short Nexstar, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are a relatively high P/S ratio, and the intensive insider-selling activity.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.