News Corp continues $1 billion stock repurchase program

Today, News Corporation, with a market capitalization of $16.63 billion and current stock price of $28.12, announced the continuation of its stock repurchase program, which authorizes the company to buy back up to $1 billion worth of its Class A and Class B common stock.

The buyback initiative is part of an ongoing effort to manage the company’s capital allocation strategy.According to InvestingPro, the company maintains a GOOD financial health score, with strong free cash flow of $750 million in the last twelve months, supporting its buyback capacity.

The program, which is subject to market conditions and applicable securities laws, allows News Corp (NASDAQ:NWSA) to repurchase shares in the open market or through privately negotiated transactions. The company’s management believes that this move could potentially benefit shareholders by improving earnings per share and return on equity over time, which currently stands at 4%.

Details of the repurchase transactions will be disclosed to the Australian Securities Exchange (ASX) on a daily basis as required by ASX rules, ensuring transparency for investors and the market. Additionally, News Corp will include information about the repurchase program in its quarterly and annual reports filed with the Securities and Exchange Commission (SEC).

The company’s filings with the SEC provide further context on risks, uncertainties, and other factors that could influence the program’s outcomes.

This news is based on a press release statement and represents a continuation of News Corp’s previously reported stock repurchase program. The company has not disclosed any specific timetable for the repurchases, emphasizing that they will occur as market and business conditions warrant. Analysts maintain a bullish consensus on the stock, though InvestingPro analysis suggests the stock is currently trading above its Fair Value. For comprehensive analysis including detailed valuation metrics and additional ProTips, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, News Corp continues to advance its $1 billion stock repurchase program, maintaining its commitment to enhance shareholder value. The company has been consistently buying back its Class A and Class B common stock, a strategy that is part of its ongoing efforts to manage capital efficiently. These repurchase activities are reported daily to the Australian Securities Exchange (ASX) in compliance with its rules.

News Corp also recently sold its Australian media business, Foxtel, to sports streaming company DAZN in a $2.1 billion equity exchange deal, a strategic move aimed at enhancing the company’s portfolio. On the financial front, the company witnessed a 3% year-over-year increase in revenue to $2.58 billion and a 14% improvement in profitability to $415 million.

In terms of analyst insights, Guggenheim analysts have increased the stock price target for News Corp shares to $43.00, up from the previous $40.00, while maintaining a Buy rating on the stock. Furthermore, both Citi and Loop Capital have issued a Buy rating for News Corp, with Citi setting a price target of $36.00 and Loop Capital adjusting its price target to $41 from $44.

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