News Corp continues share buyback, details transactions

News Corporation (NASDAQ:NWSA), the global media and publishing firm with a market capitalization of $15.63 billion and annual revenue of $10.25 billion, announced on Monday that it has continued its stock repurchase program, which authorizes the company to buy back up to $1 billion of its outstanding Class A and Class B common stock. According to InvestingPro data, the company maintains a healthy current ratio of 1.73, indicating strong financial flexibility to support this initiative.

The company’s share repurchase activity is subject to disclosure requirements by the Australian Securities Exchange (ASX), where daily transaction details must be provided. The latest transactions under this program were disclosed to the ASX and also included in News Corp’s recent quarterly and annual reports. With a strong free cash flow of $663 million in the last twelve months, the company appears well-positioned to execute its buyback program effectively.

The repurchase program, which reflects the company’s ongoing commitment to returning value to shareholders, is executed at the management’s discretion based on various factors. These include the market price of News Corp’s stock, prevailing market conditions, applicable securities laws, and other potential investment opportunities.

News Corp’s management has stated that the repurchase of shares is one of several strategies to utilize its strong balance sheet and cash flow to enhance shareholder value. Analysts maintain a strong buy consensus on the stock, with price targets ranging from $24.14 to $44 per share. For deeper insights into News Corp’s financial health and growth potential, InvestingPro subscribers can access comprehensive analysis and exclusive ProTips, along with detailed research reports that transform complex Wall Street data into actionable intelligence.

The press release contains forward-looking statements regarding the company’s intentions regarding the repurchase program. News Corp cautions that actual results may differ materially from those anticipated in these statements due to various factors, including market conditions and regulatory requirements.

Investors and analysts are reminded that this information is based on a press release statement and that forward-looking statements are not guarantees of future performance. They involve risks and uncertainties that could cause actual results to differ.

News Corp’s share repurchase program is part of a broader trend among corporations using excess capital to buy back shares, which can potentially increase earnings per share and market value. The company’s stock is traded on the NASDAQ Global Select Market under the tickers NWSA for Class A shares and NWS for Class B shares. Currently trading at $26.29, InvestingPro analysis indicates the stock is fairly valued, with an overall financial health score of FAIR, based on comprehensive evaluation of growth, profitability, and momentum metrics.

In other recent news, News Corp has reaffirmed its commitment to its $1 billion stock repurchase program. The company is actively buying back its Class A and Class B common stock, as disclosed in a recent filing with the U.S. Securities and Exchange Commission. This repurchase initiative is part of News Corp’s broader strategy to manage its capital allocation and enhance shareholder value. The company is required to report daily transactions to the Australian Securities Exchange, ensuring transparency for its shareholders. The decision to continue with the buyback program reflects News Corp’s confidence in its financial health and future prospects. The company’s filings also include forward-looking statements, indicating that the repurchase plans may vary based on market conditions and other influencing factors. While the exact timing and volume of the buybacks are at the company’s discretion, the ongoing activity is closely monitored by investors and market analysts. News Corp emphasizes that these forward-looking statements are based on current management expectations and may change due to various risks and uncertainties.

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