News Corp announces ongoing stock repurchase

NEW YORK - News Corp (NASDAQ:NWSA), a global media and information services company with a market capitalization of $15.67 billion, has confirmed the continuation of its stock repurchase program, as disclosed in a recent SEC filing. The program authorizes the company to buy back up to $1 billion of its Class A and Class B common stock. According to InvestingPro data, the company maintains a healthy financial position with a current ratio of 1.73 and generated $663 million in free cash flow over the last twelve months.

The company is required to report daily to the Australian Securities Exchange (ASX) any transactions made under this repurchase program. The latest disclosure to the ASX, as attached to the SEC filing, indicates that News Corp is actively managing its capital return strategy. InvestingPro analysis shows the company’s overall financial health score is GOOD, supported by strong price momentum and profitability metrics.

The repurchase program is part of News Corp’s broader financial strategy and reflects the company’s commitment to delivering value to its shareholders. The timing and amount of any repurchases are determined by a variety of factors, including stock price, trading volume, and general market conditions.

The SEC filing includes forward-looking statements regarding the company’s intention to repurchase shares from time to time. However, these statements are subject to various risks and uncertainties, including market fluctuations and changes in applicable laws or investment alternatives, which could impact the program’s execution.

News Corp’s SEC filing, dated Monday, April 14, 2025, and filed on Tuesday, April 15, 2025, provides the formal documentation of these ongoing repurchase activities. The filing also reiterates that forward-looking statements are based on current management expectations and beliefs, and actual results may differ materially.

Investors and market watchers typically view share repurchase programs as a sign of the company’s confidence in its own business and future prospects. By reducing the number of shares outstanding, such programs can also potentially increase earnings per share and the value of remaining shares. Trading at $26.28 with a P/E ratio of 35.09, InvestingPro analysis suggests News Corp is slightly undervalued. Analysts maintain a strong buy consensus, with detailed insights available in the comprehensive Pro Research Report, one of 1,400+ company analyses available to InvestingPro subscribers.

The information contained in this article is based on a press release statement from News Corp and does not include any assumptions or predictions by the author. News Corp’s management has not undertaken any obligation to update the forward-looking statements, except as required by law or regulation.

In other recent news, News Corp has continued its stock repurchase program, authorizing the buyback of up to $1 billion of its Class A and Class B common stock. This initiative is part of the company’s strategy to enhance shareholder value and manage its capital effectively. The company has been actively reporting its repurchase transactions to the Australian Securities Exchange (ASX) as part of its compliance obligations. These transactions are subject to various factors, including market conditions and applicable laws, which could impact the timing and volume of buybacks.

In addition, Citi analysts have maintained a Buy rating on News Corp, with a price target set at $36.00. This rating reflects Citi’s confidence in News Corp’s strategic plans, including a potential spin-off of REA to shareholders, which is anticipated to occur within the next 24 months. The analysts suggest that this move could lead to a more focused business structure and potentially enhance shareholder value. News Corp’s SEC filings provide further details on its financial strategies and the potential impact of its stock repurchase program.

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