News Corporation, with a current market capitalization of $16.65 billion, has disclosed the ongoing execution of its stock repurchase program, which authorizes the buyback of up to $1 billion worth of its Class A and Class B common stock. The company, known for its presence in the publishing and printing industry, reaffirmed this initiative in a recent filing with the SEC. The stock has shown strong momentum, delivering a 34.93% return over the past year.
The buyback program, as detailed in the filing dated Monday, December 9, 2024, is part of News Corp's strategic financial management. The company is required to report these repurchases to the Australian Securities Exchange (ASX) on a daily basis. This requirement stems from the company's dual listing, with shares traded on both the ASX and the Nasdaq Global Select Market under the tickers NWSA and NWS, respectively.
The decision to buy back shares is often seen as a sign of a company's confidence in its own financial health and future prospects. According to InvestingPro analysis, News Corp maintains a "GOOD" overall financial health score, with particularly strong momentum metrics. The company's robust EBITDA of $1.27 billion and healthy current ratio of 1.38 support this buyback initiative.
Investors and market watchers will likely monitor News Corp's repurchase activity as an indicator of its financial strategy and market outlook. Trading near its 52-week high of $30.04, the stock has gained 20.58% year-to-date. InvestingPro subscribers can access detailed analysis including Fair Value estimates, 12 exclusive ProTips, and comprehensive financial metrics in the Pro Research Report, available for over 1,400 US stocks including News Corp. (NASDAQ:NWSA) As with all stock buybacks, the impact on the company's stock performance will depend on a range of market and economic factors.
In other recent news, News Corp continues to make significant progress in its stock repurchase program, nearing its authorized limit of $1 billion for Class A and Class B common stock. This strategy is part of the company's ongoing efforts to enhance shareholder value. The company's recent financial performance for the first quarter of fiscal year 2025 shows substantial growth. Revenue rose by 3% year-over-year to $2.58 billion, and profitability improved by 14% to $415 million.
Net income surged to $144 million, and earnings per share climbed to $0.21, a significant increase from $0.05 the previous year. However, News Media revenues experienced a 5% decline to $521 million. InvestingPro maintains a positive outlook on News Corp's financial health, supporting the ongoing stock buyback strategy.
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