Nexstar Sets the Stage with a $1.5 Billion Additional Share Repurchase – Buyback Wednesdays

Last month after we published a C-suite transitions article about the broadcasting company TEGNA (TGNA), I got a chance to discuss a smaller competitor Entravision Communications (EVC) and the broadcasting segment in general with a professional investor. He had been following a group of broadcasters for a decade and felt that both TEGNA and Nexstar were high quality names in this segment. I did a deep dive into TEGNA and picked it as a spotlight idea for our August 2024 Special Situations Newsletter.

When I noticed that Nexstar had announced a large stock buyback, I was excited at the opportunity to learn more about one of the biggest players in the broadcasting segment.

Companies led by their founders often have an added advantage due to the founders’ deep commitment and long-term vision. Nexstar Media Group (NXST), a major player in the American media landscape, is run by owner-operator CEO Perry Sook. Over the past 25+ years, Mr. Sook has played a pivotal role in transforming Nexstar from a single station into the nation’s largest local television and media company. Under his leadership, Nexstar now controls 200 stations, collectively reaching 39% of television-owning households. This remarkable growth showcases Sook’s strategic acumen, which has been instrumental in driving Nexstar’s expansion and success in the competitive media industry.

Nexstar Media Group, Inc. (NXST): $172.02

Market Cap: $5.65B

EV: $12.43B

Key Insights

• Nexstar is a diversified media company with a strong presence in both local and national broadcasting, as well as a growing digital footprint. 
• The company’s stock price has been almost flat over the last year but has skyrocketed over the last decade, rising by over 280%.
• The business demonstrates cyclicality, with peak performance in even-numbered years due to political advertising.

Only plus or premium subscribers can access this post. Subscribe today.