NEW YORK – News Corporation (NASDAQ:NWSA), a global diversified media and information services company, has announced the continuation of its stock repurchase program, under which the company is authorized to buy back up to $1 billion of its outstanding Class A common stock and Class B common stock. This development was disclosed in a filing with the Securities and Exchange Commission (SEC) on Thursday.
The company has been providing daily updates to the Australian Securities Exchange (ASX), as required by ASX rules, detailing transactions made under the repurchase program. Further details of these transactions have been included in News Corp (NASDAQ:NWSA)'s quarterly and annual reports.
The buyback program is part of the company's strategy to manage its capital allocation and return value to its shareholders. News Corp has stated that the timing and amount of any shares repurchased will be determined by the company's management based on its evaluation of market conditions and other factors.
InvestingPro Insights
As News Corporation (NASDAQ:NWSA) continues its share repurchase initiative, a closer look at the company's financial health through InvestingPro's real-time data reveals a mixed picture. With a market capitalization of $15.81 billion, the company's P/E ratio stands at a high 77.31, although adjusted figures for the last twelve months as of Q3 2024 show a lower ratio of 48.48. This suggests a potentially more favorable earnings perspective moving forward. Additionally, News Corp's revenue for the same period is reported at $9.941 billion, with a gross profit margin of 49.55%, indicating robust profitability at the gross level.
Investors considering News Corp's stock will note the company's one-year price total return of 43.16%, showcasing significant recent growth, and a dividend yield of 0.73%, providing a modest income stream. With the stock trading at 98.39% of its 52-week high, the company's share price appears to reflect investor confidence. For those seeking further insights, InvestingPro offers additional tips on evaluating News Corp's financials and growth prospects. Utilize the coupon code PRONEWS24 for an extra 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable InvestingPro Tips.
InvestingPro's platform currently lists numerous additional tips for a more comprehensive analysis, which could prove invaluable for shareholders and potential investors weighing the implications of the stock repurchase program on News Corp's future performance.
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