In a move to execute its ongoing stock repurchase plan, News Corporation (NASDAQ:NWSA) has disclosed to the Australian Securities Exchange (ASX) the recent transactions made under its $1 billion Repurchase Program. The company, which is dual-listed on the ASX and NASDAQ, is mandated by ASX rules to report daily on any buyback activity.
The recent filing with the Securities and Exchange Commission dated Thursday, August 22, 2024, indicates News Corp (NASDAQ:NWSA)'s continued efforts to buy back shares of its Class A and Class B common stock. This action is part of a broader strategy that the company believes will benefit its shareholders.
The details of the buyback transactions were attached as exhibits to the SEC filing, providing transparency on the company's repurchase activities. The exhibits include forward-looking statements concerning News Corp's intentions to repurchase its shares from time to time. However, these plans are subject to change based on various factors, including market conditions, stock prices, and regulatory requirements.
News Corp's filings with the SEC also indicate that the actual outcomes of the Repurchase Program may differ significantly due to market fluctuations, legal considerations, and other investment opportunities. The company emphasizes that these forward-looking statements are current as of the date of the report, and it does not commit to updating the public on any changes to these statements, except as legally required.
The company's latest move underlines its commitment to utilizing its stock repurchase authorization as a way to manage capital effectively. While News Corp has not specified the exact number of shares it intends to repurchase, the filing underscores the company's discretion in managing the program in alignment with market conditions and corporate interests.
This announcement, based on the press release statement, provides investors with the latest update on News Corp's capital allocation strategies and its efforts to enhance shareholder value through its stock repurchase program.
In other recent news, News Corp also reported a strong financial performance for the fourth quarter of fiscal year 2024. The company's revenues increased by 6% to approximately $2.6 billion, and profitability rose by 11% to $380 million. Significant growth was driven by sectors including book publishing, digital real estate services, and Dow Jones segments.
Morgan Stanley (NYSE:MS) has adjusted its financial model for News Corp, leading to an increased stock price target from $31.00 to $35.00. This revision is based on updated expectations for the company's future earnings before interest, taxes, depreciation, and amortization (EBITDA). However, the firm's earnings per share (EPS) estimates have been slightly reduced due to assumptions of higher minority interest and tax rates.
Despite a 5% decline in revenues and a 38% decrease in EBITDA in the News Media segment, News Corp is optimistic about fiscal 2025, focusing on streaming, B2B growth, and data offerings. These are the recent developments in the company's operations and financial performance.
InvestingPro Insights
As News Corporation (NASDAQ:NWSA) continues to implement its $1 billion Repurchase Program, investors may find it valuable to consider the company's financial health and market performance. According to InvestingPro data, News Corp holds a market capitalization of $16.02 billion, with a P/E ratio that has adjusted to 45.42 over the last twelve months as of Q4 2024. The company's revenue growth in this period was modest at 2.09%, indicating a stable, albeit slow, increase in its financial intake.
InvestingPro Tips highlight that News Corp's PEG ratio stands at 0.77, suggesting that the company's stock might be undervalued based on its earnings growth. Moreover, the Price to Book ratio is at 1.97, which can be appealing to value investors looking for assets that trade below their intrinsic value. With these metrics in mind, News Corp's strategy of repurchasing shares could be seen as a confident move to invest in itself amidst a backdrop of steady revenue growth and a favorable PEG ratio.
For investors interested in deeper analysis, InvestingPro offers additional tips that could further inform investment decisions regarding News Corp. Currently, there are 15 more InvestingPro Tips available, providing insights into the company's financial position and market potential.
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