News Corp advances stock repurchase program

News Corp (NASDAQ:NWSA) has announced the advancement of its stock repurchase program, aiming to buy back up to $1 billion of its Class A and Class B common stock. The company, known for its global media and publishing operations with annual revenue of $10.25 billion, disclosed this information in a Form 8-K filing with the U.S. Securities and Exchange Commission (SEC) dated February 18, 2025.

According to InvestingPro analysis, the stock is currently trading above its Fair Value, with a market capitalization of $17.1 billion and a year-to-date return of 9.69%.

Under the repurchase program, News Corp is authorized to reacquire its shares from time to time, subject to market conditions and corporate considerations. The program is part of the company’s ongoing strategy to manage its capital allocation and enhance shareholder value. With a healthy current ratio of 1.73 and substantial free cash flow of $663 million in the last twelve months, the company appears well-positioned to execute this buyback program.

The filing also noted that News Corp is required to report its repurchase transactions daily to the Australian Securities Exchange (ASX), where it is listed. This requirement ensures transparency and allows shareholders to stay informed about the company’s repurchase activities. InvestingPro subscribers can access detailed financial health metrics, with the company currently maintaining a FAIR overall financial health score of 2.45 out of 5.

The provided information includes forward-looking statements regarding the company’s intentions to repurchase its own shares. However, these statements are based on current management expectations and could change due to various factors, including market price fluctuations, general market conditions, and regulatory requirements.

For comprehensive analysis of News Corp’s financial outlook and detailed metrics, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.

News Corp’s decision to proceed with the stock repurchase program reflects its confidence in the company’s financial stability and future prospects. It is a common practice among publicly traded companies to buy back shares as it can potentially increase earnings per share and return excess cash to shareholders.

In other recent news, News Corp has maintained its focus on shareholder value through its ongoing $1 billion stock buyback program. The company has been diligently reporting its daily transactions related to this initiative to the Australian Securities Exchange (ASX), in line with regulatory obligations. These updates are also included in News Corp’s quarterly and annual reports, demonstrating its commitment to transparency.

Citi analysts have continued to hold a positive outlook on News Corp, maintaining a Buy rating with a $36 target. This stance follows a legal development in the Murdoch family trust dispute, with a ruling against Rupert Murdoch’s attempt to alter the trust now under review by a district probate judge. The resolution of this dispute could potentially influence News Corp’s future financial strategy, with analysts suggesting it might pave the way for a spin-off of its stake in REA Group.

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