News Corporation has announced the ongoing execution of its stock repurchase program, which aims to buy back up to $1 billion of its Class A and Class B common stock. This announcement was made in a filing with the Securities and Exchange Commission (SEC) dated September 10, 2024. The buyback is part of the company’s broader strategy to enhance shareholder value.
The company, which is listed on the Nasdaq Global Select Market under the tickers NASDAQ:NWSA for Class A shares and NASDAQ:NWS for Class B shares, is also required to report its repurchase activity to the Australian Securities Exchange (ASX) on a daily basis. The information disclosed to the ASX, which includes forward-looking statements, is attached as exhibits to the SEC filing.
News Corp (NASDAQ:)’s buyback strategy reflects a common practice among corporations to repurchase their own stock as a way to return capital to shareholders. It can also be seen as a signal of the company’s confidence in its own financial health and future prospects.
The repurchase program’s execution is subject to market conditions, applicable laws, and other investment opportunities, which means the actual number of shares bought back and the timing of these purchases can vary.
The company’s SEC filing contains forward-looking statements regarding its intentions to repurchase shares from time to time. However, these statements are based on current management expectations and are subject to change due to various factors, including market prices of the company’s stock, market conditions, and legal requirements.
News Corp, with its headquarters at 1211 Avenue of the Americas, New York, is incorporated in Delaware and is known for its operations in newspapers, publishing, and printing. The company’s fiscal year ends on June 30.
The information provided in this article is based on a press release statement filed with the SEC and does not include any speculation or subjective assessment. It is intended to keep investors informed about the company’s financial activities, particularly those related to the stock repurchase program.
In other recent news, News Corporation has announced a 6% increase in revenue to approximately $2.6 billion in the fourth quarter of fiscal year 2024, and profitability rose by 11% to $380 million. These figures were largely driven by diverse sectors including book publishing, digital real estate services, and Dow Jones segments.
News Corp’s subsidiary, REA Group Ltd, is considering an acquisition of Rightmove (OTC:) plc, a UK-based company that operates a leading real estate portal. This potential acquisition could have significant implications for the digital real estate market.
In terms of analyst feedback, Loop Capital has increased News Corp’s stock price target to $39.00, maintaining a Buy rating. Morgan Stanley also upgraded its stock price target for News Corp to $35.00, albeit with slightly reduced earnings per share estimates.
News Corp is also executing a $1 billion stock repurchase program, a move seen as part of a broader strategy to enhance shareholder value. Despite a decrease in revenues and EBITDA in the News Media segment, News Corp is planning for fiscal 2025, focusing on streaming, B2B growth, and data offerings. These are the recent developments for News Corp.
InvestingPro Insights
As News Corporation continues its stock repurchase program, investors can gain additional context through real-time data from InvestingPro. With a market capitalization of $15.23 billion and a P/E ratio standing at 58.8, the company’s valuation metrics are a significant factor for investors to consider. The adjusted P/E ratio for the last twelve months as of Q4 2024 is 43.18, reflecting a more tailored view of the company’s earnings relative to its stock price.
The company’s revenue growth over the last twelve months as of Q4 2024 was modest at 2.09%, with a quarterly increase of 5.92%, indicating a positive trajectory in the company’s financial performance. Furthermore, News Corp’s gross profit margin of 50.41% highlights its ability to maintain profitability. These figures are crucial for investors assessing the company’s operational efficiency and potential for future growth.
InvestingPro Tips suggest looking at the PEG ratio, which at 0.74 indicates potential undervaluation based on earnings growth expectations. Additionally, the price/book ratio of 1.88 could appeal to value-oriented investors seeking assets at prices close to their intrinsic value. For those interested in exploring further, InvestingPro offers a wealth of additional tips—currently listing over 15 tips to aid in investment decisions. These tips and metrics, combined with the latest earnings report scheduled for November 6, 2024, can provide investors with a comprehensive understanding of News Corp’s financial health as they execute their buyback strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
