News Corp (NASDAQ:NWSA) has disclosed its ongoing share repurchase activities, as part of its previously announced program to buy back up to $1 billion of its Class A and Class B common stock. The company, known for its presence in the publishing industry, provided this information to the Australian Securities Exchange (ASX) as required by ASX rules, and also included it in its quarterly and annual reports.
The repurchase transactions, which are part of the company's stock repurchase program, were reported on Monday, with the company reiterating its intent to periodically purchase its own shares. This move is influenced by several factors, including the market price of News Corp's stock, market conditions, and relevant securities laws.
This information is based on a press release statement filed with the SEC on Tuesday, October 22, 2024.
In other recent news, News Corporation continues to progress with its $1 billion stock repurchase program. The company's Q4 revenue saw a 6% increase, reaching approximately $2.6 billion, while profitability rose by 11%, amounting to $380 million. In parallel, News Corp's subsidiary, REA Group Ltd, withdrew its potential offer for UK-based Rightmove (OTC:RTMVY) plc, aligning with the continuation of the company's share repurchase program.
REA Group Ltd, however, issued a revised non-binding proposal to acquire all share capital of Rightmove plc, indicating News Corp's strategic interest in the digital real estate sector. Analysts from Loop Capital and Morgan Stanley (NYSE:MS) maintain a positive outlook on News Corp's financial prospects. Loop Capital holds a steady Buy rating, while Morgan Stanley has upgraded its target.
InvestingPro Insights
News Corp's ongoing share repurchase program aligns with its current financial position and market performance. According to InvestingPro data, the company's market capitalization stands at $15.28 billion, with a price-to-earnings ratio of 60.02. This relatively high P/E ratio suggests investors are pricing in growth expectations, which may be supported by the company's recent financial performance.
InvestingPro Tips highlight that News Corp has demonstrated consistent revenue growth, with a 2.09% increase over the last twelve months and a more robust 5.92% growth in the most recent quarter. This growth trajectory could be a factor in management's decision to continue with the share repurchase program, as it may indicate confidence in the company's financial health and future prospects.
Additionally, News Corp's stock has shown strong performance, with a 25.08% total return over the past year. This positive momentum, combined with the company's dividend yield of 0.76%, suggests that News Corp is focused on delivering value to shareholders through both capital appreciation and income.
For investors seeking a deeper understanding of News Corp's financial position and growth potential, InvestingPro offers 15 additional tips that could provide valuable insights into the company's investment prospects.
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