Fox Corp (NASDAQ:FOXA) (NASDAQ:FOX) Chief Operating Officer John Nallen recently sold a significant portion of his holdings in the company. According to a recent filing, Nallen sold 182,481 shares of Class A Common Stock at an average price of $43.73 per share, totaling approximately $7.98 million. The sales were executed in the open market with prices ranging from $43.61 to $43.89 per share.
Additionally, Nallen exercised stock options to acquire the same number of shares at a price of $26.12 each, amounting to a total transaction value of $4.77 million. Following these transactions, Nallen retains direct ownership of 249,424 shares and indirect ownership of 150,000 shares through a Grantor Retained Annuity Trust (GRAT).
In other recent news, Fox Corporation has kicked off fiscal 2025 with robust financial results. The media giant reported an 11% increase in revenue, reaching $3.56 billion, and a significant 21% surge in EBITDA, crossing the $1 billion threshold. These strong figures are attributed to high audience engagement, notably with FOX News, and substantial growth in political advertising. The sports segment also showed a positive trend, with a marked increase in MLB postseason and NFL broadcast viewership among younger demographics. Despite rising expenses, particularly in programming rights for FOX Sports and costs at Tubi, the company's strategic focus and content portfolio have generated a positive outlook for the fiscal year. Analyst Michael Ng expressed concerns over digital losses, to which CFO Steve Tomsic responded that the TV segment's growth is expected to offset these challenges.
InvestingPro Insights
Fox Corp's recent insider activity occurs against a backdrop of strong financial performance and market positioning. According to InvestingPro data, the company boasts a market capitalization of $18.92 billion and a P/E ratio of 10.87, suggesting a potentially undervalued stock relative to earnings.
InvestingPro Tips highlight that Fox has been aggressively buying back shares and offers a high shareholder yield. This aligns with the company's focus on returning value to shareholders, which may explain the insider's decision to exercise options and sell shares at current market prices.
The stock's strong performance is evident in its 36.06% price total return over the past six months, and it's currently trading near its 52-week high at 96.51% of that peak. This upward momentum could be a factor in the timing of the insider's transactions.
Fox's financial health appears robust, with InvestingPro Tips noting that liquid assets exceed short-term obligations and the company operates with a moderate level of debt. This solid financial footing may provide confidence to both insiders and investors in the company's stability and future prospects.
For readers interested in a deeper dive into Fox Corp's financials and market position, InvestingPro offers 11 additional tips that could provide valuable insights for investment decisions.
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