News Corp continues $1 billion stock repurchase program

News Corp, with a current market capitalization of $16.1 billion, has reaffirmed its commitment to its stock repurchase program, which authorizes the company to buy back up to $1 billion worth of its Class A common stock and Class B common stock over time. According to InvestingPro analysis, the stock is currently trading near its Fair Value, with shares priced at $28.36. This information, originally reported in the company’s quarterly and annual reports, was disclosed in a recent filing with the Australian Securities Exchange (ASX) and reiterated in a 8-K filing with the U.S. Securities and Exchange Commission (SEC) on Tuesday.

The filing, made on February 26, 2025, follows the company’s standard practice of providing the ASX with daily updates on any transactions made under the repurchase program. The details of these transactions were attached as Exhibit 99.1 and Exhibit 99.2 in the filing.

News Corp’s management has stated that the decision to repurchase shares will be influenced by various factors, including the market price of its stock, prevailing market conditions, applicable securities laws, and other possible investment opportunities. With strong financial metrics including a healthy current ratio of 1.73 and last twelve months revenue of $10.25 billion, the company maintains significant financial flexibility. The company also noted that these forward-looking statements are subject to change due to uncertainties and circumstances that may arise, and any changes will be communicated as required by law.

The repurchase program is part of News Corp’s strategy to manage its capital allocation and deliver value to shareholders. The company’s Class A common stock and Class B common stock are traded on the Nasdaq Global Select Market under the tickers (NASDAQ:NWSA) and (NASDAQ:NWS), respectively.

As per the 8-K filing, News Corp has not made any commitment to a specific timeline or the exact number of shares to be repurchased. The company has made it clear that it will only proceed with repurchases after careful consideration of all relevant factors and in compliance with regulatory requirements.

Investors and the market continue to monitor News Corp’s repurchase activities as an indicator of the company’s financial health and management’s confidence in its future prospects. The information provided in this article is based on the press release statement filed with the SEC.

In other recent news, News Corp has announced continued progress in its $1 billion stock repurchase program, aiming to buy back shares of its Class A and Class B common stock. This initiative, disclosed in a Form 8-K filing with the U.S. Securities and Exchange Commission (SEC), underscores the company’s strategy to manage capital allocation effectively. The repurchase program is subject to market conditions and other investment opportunities, with no specific timeline for completion provided. News Corp is required to report its repurchase transactions daily to the Australian Securities Exchange (ASX), ensuring transparency and keeping shareholders informed. The company’s latest SEC filing includes forward-looking statements about the program, emphasizing that these are based on current expectations and may change due to various factors. These factors include market price fluctuations, legal requirements, and general market conditions. News Corp’s management has cautioned that the forward-looking statements are only relevant as of the report’s date and do not require updates unless mandated by law. This ongoing stock repurchase effort reflects a common corporate practice to potentially increase earnings per share by reducing the number of shares outstanding.

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