1. Nexstar Media Group Inc. (NASDAQ:NXST)
Market Cap: $5.51 billion
Number of Hedge Fund Holders: 34
Nexstar Media Group Inc. (NASDAQ:NXST) is a media company that broadcasts local news and entertainment, with a commitment to quality journalism.
On June 1, the company launched NewsNation, a 24/7 cable news network, providing live coverage of recent news events. The company is expanding content offerings with new premier shows like Trivial Pursuit and Scrabble, and renewed series like All American and Wildcard. It has also secured the rights to broadcast PAC-12 football games and the 2024 Snoop Dog Arizona Bowl on The CW. It’s expanding its CW network affiliation, with 3 additional stations.
Q2 looked great as the distribution and advertising revenue rose. Political advertising generated a record revenue through comprehensive political news and live debate coverage, while non-political advertising sequentially improved. Overall, these improvements resulted in 2.34% year-over-year growth in the second quarter, translating into a revenue of $1.27 billion. The earnings per share were $3.54.
Recently, there have been instances of insider selling. President of Networks, Sean Compton, sold 3,930 shares on August 16, with 10,684 remaining shares. Executive VP and CRO, Michael Strober, sold all of his shares on August 21. A director at the company, Armstrong D Geoffrey, sold 3,505 shares on August 26. He now owns 9,250 shares. Executive VP and General Counsel, Rachel Morgan, sold all of her shares on August 27. Such instances indicate concerns about Nexstar Media Group Inc.’s (NASDAQ:NXST) prospects.
Yet, the company and its partner stations earned multiple awards for journalistic excellence over time which improved trust in the company. Its expansion strategies also position the company for substantial growth, making it one of the best broadcasting stocks to buy.
Currently, 34 hedge funds have positions in this company. Citadel Investment Group is the biggest stakeholder with a position of $113,527,100.
Here is what Richie Capital Group has to say about Nexstar Media Group, Inc. (NASDAQ:NXST) in its Q1 2022 investor letter:
“Nexstar Media Group (NXST up 24.8%) – The television broadcasting and digital media company surged during the quarter after presenting at an investor conference where management pointed to a strong 2022 for both political advertising and retransmission. They have exposure to more than 80% of markets with competitive mid-term political races. NXST is developing new ad categories such as sports betting and they are focused on expanding digital ad revenue and providing digital solutions to local advertisers. Auto advertising will return in the fall as auto dealerships re-enter the market to sell their replenished inventory.”
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