News Corp (NASDAQ:NWSA) has disclosed ongoing transactions under its stock repurchase program, aiming to buy back up to $1 billion of its Class A and Class B common stock. The details were provided to the Australian Securities Exchange as required, and also included in the company's recent SEC filing.
The media conglomerate, which is incorporated in Delaware and headquartered in New York, stated that the repurchase program is part of its capital allocation strategy. The buyback plan is subject to market conditions, applicable laws, and other investment opportunities, which may influence the timing and amount of shares purchased.
This announcement follows the company’s established practice of reporting its share repurchase activities on a quarterly and annual basis, as well as providing daily updates to the ASX when transactions occur. News Corp's filings caution that forward-looking statements regarding the repurchase of shares are based on current management expectations and could change due to various factors.
The company's stock is traded on the Nasdaq Global Select Market under the symbols NWSA (Class A Common Stock) and NWS (Class B Common Stock). As of today, there have been no further details provided on the specific number of shares repurchased or the exact financial impact this program will have on the company's capital structure.
Investors and stakeholders are advised to review the company's filings with the Securities and Exchange Commission for a comprehensive understanding of the company's financial position and risk factors. The information in this article is based on a press release statement.
In other recent news, News Corporation continues to execute its $1 billion stock repurchase program, buying back its Class A and Class B common stock. The outcomes of this initiative, part of a broader strategy to enhance shareholder value, could vary due to factors like market conditions and legal requirements. Simultaneously, News Corp's subsidiary, REA Group Ltd, is contemplating acquiring Rightmove (OTC:RTMVY) plc, a UK-based company that operates a leading real estate portal.
On the financial front, News Corp reported a 6% increase in revenue to approximately $2.6 billion in the fourth quarter of fiscal year 2024, with profitability rising by 11% to $380 million. This growth was largely driven by diverse sectors including book publishing, digital real estate services, and Dow Jones segments.
In terms of analyst feedback, Loop Capital has increased News Corp's stock price target to $39.00, maintaining a Buy rating. Morgan Stanley (NYSE:MS) also upgraded its stock price target for the company to $35.00, albeit with slightly reduced earnings per share estimates. These are the recent developments for News Corp.
InvestingPro Insights
As News Corp continues its stock repurchase program, investors may find the real-time data from InvestingPro particularly insightful. With a market capitalization of $14.99 billion, the company's valuation metrics paint a mixed picture. The P/E ratio stands at 57.96, which may be considered high by traditional standards, but when adjusted for the last twelve months as of Q4 2024, it softens to 42.49. This could signal expectations of earnings growth or a reassessment of the company's profit potential.
Moreover, the PEG ratio, which is a measure of the stock's price-to-earnings relative to its growth, is at 0.72. This is indicative of the stock potentially being undervalued based on its earnings growth. The Price / Book ratio of 1.85 suggests that the company's market value is in a reasonable range compared to its book value. Additionally, News Corp has demonstrated a steady revenue growth of 2.09% over the last twelve months, which could be a reassuring sign for investors looking at the company's performance consistency.
InvestingPro Tips suggest that the company's gross profit margin of 50.41% is a strong indicator of its ability to control costs and generate earnings. Furthermore, with a dividend yield of 0.77%, the company offers a modest income stream for investors. For those interested in further insights, InvestingPro features additional tips that can help assess the potential impact of News Corp's buyback program on its financial health and stock performance.
Investors considering capitalizing on News Corp's activities may want to consider these metrics and tips provided by InvestingPro. It's also worth noting that the platform offers even more in-depth analysis, with a total of 10 additional InvestingPro Tips available to help guide investment decisions.
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