What Investors Should Know About This $6 Million Sale of a Media Stock Up 41% in One Year

On February 2, Capital Management Corp disclosed in a U.S. Securities and Exchange Commission filing that it sold 29,799 shares of Nexstar Media Group (NASDAQ:NXST), an estimated $5.82 million trade based on quarterly average pricing.

What happened

According to a U.S. Securities and Exchange Commission filing dated February 2, Capital Management Corp reduced its position in Nexstar Media Group by 29,799 shares during the fourth quarter. The estimated transaction value is $5.82 million, calculated using the average closing price over the quarter. The fund ended the period with 127,651 shares, with the position value changing by $5.21 million, a figure that includes both trading and price performance effects.

What else to know

The NXST stake now represents 4.25% of the fund’s $610.07 million in reportable U.S. equity assets.

Top holdings after the filing:

• NASDAQ:IDCC: $37.12 million (6.1% of AUM)
• NYSE: PBI: $30.97 million (5.1% of AUM)
• NYSE: GTN: $29.76 million (4.9% of AUM)
• NASDAQ: NXST: $25.92 million (4.2% of AUM)
• NYSE: AEM: $22.72 million (3.7% of AUM)

As of January 30, Nexstar shares were priced at $212.38, up 41.1% over the past year and well outperforming the S&P 500’s 15% gain in the same period.

Company overview

Company snapshot

• Nexstar Media Group operates a portfolio of television stations, digital media properties, and a national cable network, generating revenue primarily from advertising and retransmission fees.
• Its business model leverages local and national advertising sales, distribution agreements with cable and satellite providers, and digital advertising platforms.
• The company serves television audiences across the United States, targeting both local viewers and national advertisers seeking broad reach through broadcast and digital channels.

Nexstar Media Group, Inc. is a leading U.S. television broadcasting and digital media company with a diversified portfolio of stations and digital assets. The company’s scale enables it to reach a wide audience and attract significant advertising revenue, while its local and national presence supports strong relationships with both advertisers and content distributors. Strategic investments in digital platforms and content distribution underpin Nexstar’s competitive position in the evolving media landscape.

What this transaction means for investors

Nexstar has delivered strong stock performance over the past year, but the operating picture is more nuanced than the share price alone suggests.

In its most recent quarterly release, Nexstar reported $1.20 billion in revenue, down 12% year over year due largely to a sharp drop in political advertising, with net income of $65 million and adjusted EBITDA of $358 million. Free cash flow remained solid at $166 million, even as results reflected a non-election year and one-time costs tied to the pending TEGNA acquisition.

Even after the trim, Nexstar remains a top-five holding at just over 4% of assets, sitting alongside other media and communications names. That positioning signals ongoing confidence in the company’s scale, retransmission revenue base, and long-term election cycle upside.

Ultimately, when a cyclical stock runs well ahead of near-term fundamentals, trimming can reduce volatility without abandoning the thesis. Nexstar still throws off cash, still controls valuable local media assets, and still stands to benefit meaningfully from the next political advertising cycle.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.