Nexstar Media Group (NASDAQ:NXST) Shares Gap Up – Should You Buy?

Nexstar Media Group, Inc. (NASDAQ:NXST)’s stock price gapped up before the market opened on Friday . The stock had previously closed at $223.05, but opened at $231.64. Nexstar Media Group shares last traded at $229.3580, with a volume of 232,256 shares trading hands.

Key Stories Impacting Nexstar Media Group

Here are the key news stories impacting Nexstar Media Group this week:

• Positive Sentiment: Regulatory approvals and close — Nexstar announced the closing of its acquisition of TEGNA after FCC and DOJ approval, creating the largest U.S. broadcast station group and supporting revenue/scale synergies. Nexstar Closes Acquisition
• Neutral Sentiment: Debt financing to fund the deal — Nexstar announced offerings of $3.39B in senior secured notes due 2033 and $1.725B in senior notes due 2034 (aggregate > $5B), giving the company liquidity to execute the combination but materially increasing near-term leverage. Debt Offering Announcement
• Negative Sentiment: State lawsuits and requests to block integration — eight state attorneys general have sued to block the merger and asked a judge for a temporary restraining order to halt integration, creating legal and operational uncertainty that could delay or alter expected synergies. States Ask Judge to Block Merger
• Negative Sentiment: Market/valuation scrutiny — analysts and commentators note Nexstar’s shares are no longer as cheap after the deal and the enlarged company now carries greater execution and balance-sheet risk; this may temper near-term upside. Seeking Alpha Valuation Piece

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on NXST shares. Benchmark upped their price target on Nexstar Media Group from $250.00 to $300.00 and gave the stock a “buy” rating in a report on Friday, February 27th. Wells Fargo & Company raised their price objective on Nexstar Media Group from $250.00 to $290.00 and gave the company an “overweight” rating in a report on Friday, February 27th. Deutsche Bank Aktiengesellschaft boosted their price objective on Nexstar Media Group from $225.00 to $250.00 and gave the company a “buy” rating in a research report on Tuesday, February 10th. Barrington Research reiterated an “outperform” rating and set a $290.00 target price on shares of Nexstar Media Group in a research report on Tuesday, March 3rd. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Nexstar Media Group in a research report on Monday, December 29th. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Nexstar Media Group currently has a consensus rating of “Moderate Buy” and an average target price of $278.67.

Nexstar Media Group Stock Performance

The stock has a market cap of $6.88 billion, a price-to-earnings ratio of 77.15, a P/E/G ratio of 0.90 and a beta of 0.79. The firm’s 50-day moving average is $228.18 and its two-hundred day moving average is $208.51. The company has a current ratio of 2.07, a quick ratio of 2.07 and a debt-to-equity ratio of 3.05.

Nexstar Media Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Friday, February 13th were issued a dividend of $1.86 per share. The ex-dividend date of this dividend was Friday, February 13th. This represents a $7.44 dividend on an annualized basis and a dividend yield of 3.3%. Nexstar Media Group’s dividend payout ratio is presently 253.06%.

Hedge Funds Weigh In On Nexstar Media Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. Integrated Wealth Concepts LLC purchased a new stake in shares of Nexstar Media Group during the first quarter worth approximately $499,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Nexstar Media Group by 49.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,870 shares of the company’s stock valued at $2,844,000 after purchasing an additional 5,251 shares in the last quarter. Millennium Management LLC lifted its holdings in Nexstar Media Group by 571.4% in the 1st quarter. Millennium Management LLC now owns 72,650 shares of the company’s stock valued at $13,020,000 after purchasing an additional 61,830 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Nexstar Media Group by 14.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 132,809 shares of the company’s stock worth $23,802,000 after purchasing an additional 16,637 shares during the last quarter. Finally, Acadian Asset Management LLC acquired a new stake in Nexstar Media Group during the 1st quarter worth $654,000. Hedge funds and other institutional investors own 95.30% of the company’s stock.

About Nexstar Media Group

Nexstar Media Group, Inc is a diversified American media company engaged primarily in the ownership, operation and strategic affiliation of local television stations, digital platforms and cable networks. The company provides a range of broadcast content, including local news, sports coverage, entertainment programming and syndicated shows, reaching audiences in more than 100 television markets across the United States.

Founded in 1996 by entrepreneur Perry Sook and headquartered in Irving, Texas, Nexstar has built its presence through organic growth and a series of high-profile acquisitions.