10 Worst Broadcasting Stocks to Buy According to Short Sellers

3. Nexstar Media Group Inc. (NASDAQ:NXST)

Short % of Shares Outstanding As of August 15: 6.41%

Number of Hedge Fund Holders: 34

Nexstar Media Group Inc. (NASDAQ:NXST) is a media company that broadcasts local news, sports and entertainment content to about 68% of the total US households, covering 200 stations in 116 US markets.

President of Networks, Sean Compton, sold 3,930 of his company shares on August 16, with 10,684 remaining shares. Executive VP and CRO, Michael Strober, sold all of his shares (1,076) on August 21. The director, Armstrong D Geoffrey, sold 3,505 shares on August 26. Executive VP and General Counsel, Rachel Morgan, sold all of her shares (6,196) on August 27.

Before all of this insider selling, the company’s shares were already shorted by 6.41% as of August 15. In the second quarter of 2024, 34 hedge funds were long in the company, where Citadel Investment Group is the biggest stakeholder with a value of $113,527,100.

Q2 generally looked great with political advertising generating a record revenue. Overall revenue year-over-year growth was 2.34% , translating into a revenue of $1.27 billion.

This quarter features the launch of NewsNation, a 24/7 cable news network, providing live coverage of recent news events. It has also secured the rights to broadcast PAC-12 football games and the 2024 Snoop Dog Arizona Bowl on The CW.

It is expanding content offerings with new premier shows like Trivial Pursuit and Scrabble, and renewed series like All American and Wildcard. With multiple awards for journalistic excellence over time, the company has built a reputation and is positioned for growth and success.

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.”