News Corp continues stock repurchase program

Today, News Corporation, currently valued at $16.61 billion, disclosed its ongoing efforts to repurchase company stock, as part of a $1 billion stock repurchase program. This announcement, made through a Form 8-K filing with the Securities and Exchange Commission, reaffirms the company’s authorization to acquire shares of its Class A and Class B common stock. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with shares currently at $28.08.

The repurchase program, which is also disclosed to the Australian Securities Exchange (ASX) on a daily basis, is a routine part of News Corp’s financial strategy. The information provided to the ASX, included as Exhibits 99.1 and 99.2 in the filing, contains forward-looking statements regarding the company’s intentions to periodically buy back its own stock.

These repurchases are subject to market conditions, applicable laws, and other investment opportunities, and may influence the market price of News Corp’s stock. As with any forward-looking statements, they are based on current expectations and are subject to change. The company’s filings with the SEC provide additional context on the potential risks and uncertainties that could affect actual results.

Investors and market watchers should note that while News Corp has expressed its intent to continue the repurchase program, such activities will be evaluated in the context of market conditions and other factors. The company has stated it has no obligation to update any forward-looking statements, except as required by law. With the stock trading near its 52-week high of $30.04 and analysts setting a consensus high target of $43, InvestingPro subscribers can access detailed valuation metrics and 12 additional ProTips to better evaluate this investment opportunity. The company is scheduled to report earnings in 5 days, on February 5, 2025.

This press release statement serves as the source of information for today’s report. News Corp, incorporated in Delaware and headquartered in New York, is listed on the Nasdaq Global Select Market under the tickers (NASDAQ:NWSA) for Class A shares and (NASDAQ:NWS) for Class B shares. The company maintains a GOOD financial health score of 2.56 according to InvestingPro’s comprehensive analysis, which includes detailed research reports available for over 1,400 US stocks.

In other recent news, News Corp, the global media and information services company, has been making significant moves in the market. Notably, the company continues its $1 billion stock repurchase program, a strategic initiative aimed at enhancing shareholder value. This action involves the buyback of its Class A and Class B common stock, with repurchase activities reported daily to the Australian Securities Exchange in compliance with its rules.

Adding to these developments, News Corp recently sold its Australian media business, Foxtel, to sports streaming company DAZN in a $2.1 billion equity exchange deal. This strategic move is seen as enhancing the company’s portfolio.

On the financial front, the company’s recent performance indicated 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. These recent developments highlight News Corp’s focus on prudent capital management and dedication to delivering value to its shareholders.

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