News Corporation has disclosed ongoing efforts under its stock repurchase program, which authorizes the buyback of up to $1 billion of the company’s Class A and Class B common stock.
The company, known for its global media and information services and currently valued at $16.2 billion in market capitalization, revealed the update in a recent filing with the Securities and Exchange Commission (SEC). According to InvestingPro analysis, the company maintains a strong financial health score, suggesting solid backing for its capital allocation decisions.
The filing, dated Wednesday, January 15, 2025, stated that under the rules of the Australian Securities Exchange (ASX), News Corp (NASDAQ:NWSA) is required to report daily transactions related to the repurchase program. Additionally, the company provides details of the stock buybacks in its quarterly and annual reports.
The repurchase program is part of News Corp’s broader strategy to manage its capital allocation and return value to shareholders. With $750 million in free cash flow and $1.27 billion in EBITDA for the last twelve months, the company appears well-positioned to execute its buyback program.
The company’s shares are traded on the Nasdaq Global Select Market under the symbols NWSA for Class A common stock and NWS for Class B common stock, with the Class A shares showing a 16.93% return over the past year. For deeper insights into News Corp’s valuation and extensive financial metrics, visit InvestingPro, where you’ll find comprehensive analysis in the Pro Research Report, available for over 1,400 US stocks.
The information provided to the ASX, attached as Exhibits 99.1 and 99.2 in the filing, contains forward-looking statements regarding the company’s intention to repurchase shares from time to time. However, these plans are subject to market conditions, legal requirements, and other investment opportunities. Based on InvestingPro’s Fair Value analysis, the stock currently appears overvalued, which could influence the timing and extent of share repurchases.
The SEC filing emphasized that actual results of the repurchase program could differ materially from those anticipated in the forward-looking statements due to various factors, including market prices, general market conditions, and the legal and regulatory environment.
News Corp’s management has indicated that there is no obligation to update these forward-looking statements publicly, except as required by law or regulation. The company’s filings with the SEC provide more detailed information on the risks and uncertainties associated with the repurchase program.
This update on the repurchase program is based on a press release statement and forms part of News Corp’s commitment to transparently disclose its financial activities to shareholders and the market.
In other recent news, Citi analysts have initiated coverage on News Corp, issuing a Buy rating and establishing a $36.00 price target. They anticipate strategic moves by the company’s management, including the potential expansion of its ownership stake in REA Group Limited, which could significantly increase shareholder value.
In addition, News Corp recently sold its Australian media business, Foxtel, to sports streaming company DAZN in a $2.1 billion equity exchange deal. Loop Capital, despite lowering its price target for News Corp to $41 from $44, upheld a Buy rating for the company’s stock. These are some of the recent developments that reflect News Corp’s focus on prudent capital management and dedication to delivering value to its shareholders.
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