News Corp continues $1 billion stock buyback

Published 21/02/2025, 12:34
News Corp continues $1 billion stock buyback

NEW YORK – News Corp (NASDAQ:NWSA) (market cap: $16.33 billion) has disclosed ongoing transactions as part of its $1 billion stock repurchase program, intended to buy back shares of its Class A and Class B common stock. The media giant, currently trading at $28.85 and generating over $10.25 billion in annual revenue, revealed the buyback details in a recent SEC filing dated February 20, 2025. According to InvestingPro data, the company maintains a healthy 4% free cash flow yield, supporting its capital return initiatives.

The buyback program, which was previously announced, allows the media giant to repurchase its outstanding shares from time to time. As per Australian Securities Exchange (ASX) requirements, where News Corp also trades, the company must report daily on any buyback activity. These details are also included in News Corp’s quarterly and annual reports to provide transparency to investors. Wall Street analysts maintain a bullish outlook on the stock, with price targets ranging from $24.14 to $44, according to InvestingPro analysis.

In the latest filing, News Corp attached two exhibits detailing the transactions made under the repurchase program on the dates noted within the exhibits. The company’s intent to repurchase its Class A and Class B common stock is part of a strategic effort to manage its capital allocation.

InvestingPro analysis indicates the company maintains a FAIR overall financial health score, suggesting solid fundamentals supporting its capital allocation strategy. For deeper insights into News Corp’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The information in this article is based on a press release statement.

In other recent news, Citi analysts have maintained a Buy rating on News Corp, with a price target of $36, highlighting the potential positive impact of resolving a legal dispute within the Murdoch family trust. This legal matter, which involves the control of the trust that holds significant influence over News Corp, is under review by a district probate judge. The resolution of this dispute could pave the way for News Corp to consider strategic moves such as a spin-off of its stake in REA Group, according to Citi.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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