News Corporation (NASDAQ:NWSA), the global media and information services company with a market capitalization of $17 billion, has been actively purchasing shares under its $1 billion stock repurchase program, according to a recent 8-K filing with the U.S. Securities and Exchange Commission.
The company is authorized to buy back shares of both its Class A common stock and Class B common stock as part of the program. The stock has shown strong momentum, gaining over 19% year-to-date and trading near its 52-week high of $30.04.According to InvestingPro, News Corp (NASDAQ:NWSA) maintains a GOOD financial health score, suggesting solid fundamentals supporting its buyback strategy.
The filing, dated Friday, November 29, 2024, indicates that News Corp has provided daily disclosures to the Australian Securities Exchange (ASX), as required by ASX rules, detailing the transactions made under the repurchase program. These disclosures are also included in the company's quarterly and annual reports to provide shareholders with transparency regarding the buyback activities.
News Corp's repurchase strategy is part of a broader effort to manage its capital effectively. The decision to repurchase shares is based on various factors, including the market price of the company's stock, general market conditions, applicable securities laws, and the availability of alternative investment opportunities.
News Corp's management has not committed to a specific timeline for the repurchase program and may adjust its plans based on evolving market conditions and other relevant factors. The company has disclaimed any obligation to update its forward-looking statements publicly, except as required by law or regulation.
With $750 million in levered free cash flow and a strong current ratio of 1.38, the company appears well-positioned to execute its buyback program.For deeper insights into News Corp's financial position and growth potential, InvestingPro subscribers can access comprehensive analysis, including over 30 additional financial metrics and expert ProTips. The platform's Fair Value analysis currently indicates the stock may be overvalued at current levels.
Investors and market watchers will likely continue to monitor News Corp's repurchase activities as an indicator of the company's financial health and management's confidence in its stock value. Analysts maintain a bullish outlook, with a consensus recommendation of 1.75 (Strong Buy) and price targets ranging from $28.03 to $41.00. This news is based on the latest SEC filing and reflects the ongoing financial strategies of News Corp as it navigates the market.
In other recent news, News Corporation continues to advance its $1 billion stock repurchase program, which is part of the company's broader strategy to enhance shareholder value. The initiative allows the company to buy back its Class A and Class B common stock. This information was disclosed in the company's recent filings with the U.S. Securities and Exchange Commission and the Australian Securities Exchange.
News Corp's first quarter of fiscal year 2025 showed significant financial growth. Revenue increased by 3% year-over-year to $2.58 billion, and profitability improved by 14% to $415 million. Net income surged to $144 million, and earnings per share climbed to $0.21, a substantial rise from $0.05 the previous year. However, News Media revenues saw a 5% decline to $521 million.
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