News Corporation, the global media and publishing firm, has disclosed ongoing transactions under its stock repurchase program to the Australian Securities Exchange (ASX), as per a recent 8-K filing with the U.S. Securities and Exchange Commission. The company, incorporated in Delaware and headquartered in New York, is actively buying back shares of its Class A and Class B common stock, with an authorization to repurchase up to $1 billion worth of shares. With a current market capitalization of $16.22 billion and a stock price of $27.60, InvestingPro analysis indicates the stock is currently trading above its Fair Value.
The repurchase program, which is a part of the company's capital allocation strategy, was mentioned in the filing dated Tuesday. News Corp (NASDAQ:NWSA)'s commitment to the repurchase program reflects its intent to manage capital effectively and deliver value to shareholders. The company's stock is traded on the NASDAQ Global Select Market under the tickers NASDAQ:NWSA for Class A shares and NASDAQ:NWS for Class B shares. According to InvestingPro data, the company maintains a healthy financial position with a current ratio of 1.38 and a moderate debt-to-equity ratio of 0.49.
This update follows News Corp's standard reporting practice and aligns with regulatory requirements, ensuring transparency for investors and market participants. The company's filings with the SEC, including quarterly and annual reports, also provide insights into the repurchase program's progress.
In other recent news, News Corporation has been actively pursuing its $1 billion stock repurchase program. The company's financial performance has shown a 3% year-over-year increase in revenue to $2.58 billion and a 14% improvement in profitability to $415 million. Conversely, News Media revenues experienced a 5% decline to $521 million. Despite this, analysts from InvestingPro maintain a positive outlook on News Corporation's financial health, endorsing the continuation of the stock buyback strategy. In a strategic shift, News Corp recently sold its Australian media business, Foxtel, to sports streaming company DAZN for $2.1 billion in an equity exchange deal.
This move was backed by Loop Capital, which, despite lowering its price target for News Corp to $41 from $44, upheld a Buy rating for the company's stock. These are among the recent developments at News Corporation, reflecting the company's focus on prudent capital management and dedication to delivering value to its shareholders.
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