We wouldn't blame Nexstar Media Group, Inc. (NASDAQ:NXST) shareholders if they were a little worried about the fact that Brett Jenkins, the Executive VP and Chief Technology & Digital Officer recently netted about US$739k selling shares at an average price of US$171. That's a big disposal, and it decreased their holding size by 14%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Nexstar Media Group

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Jay Grossman, sold US$1.7m worth of shares at a price of US$171 per share. So what is clear is that an insider saw fit to sell at around the current price of US$170. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Insiders in Nexstar Media Group didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Nexstar Media Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Nexstar Media Group insiders own 6.4% of the company, currently worth about US$337m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Nexstar Media Group Tell Us?

Insiders haven't bought Nexstar Media Group stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Nexstar Media Group is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 2 warning signs for Nexstar Media Group (1 is concerning) you should be aware of.

But note: Nexstar Media Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.