News Corporation, currently valued at $16.21 billion, has disclosed ongoing transactions related to its stock repurchase program, according to a recent 8-K filing with the Securities and Exchange Commission.
The filing, dated January 3, 2025, indicates that the company, which operates in the publishing and printing industry, is authorized to repurchase up to $1 billion worth of its Class A and Class B common stock. According to InvestingPro data, the company's stock currently trades at $27.55, near its 52-week high of $30.04.
The repurchase program is a part of the company's strategy to manage its capital allocation, supported by a healthy free cash flow of $750 million in the last twelve months. News Corp (NASDAQ:NWSA) is required to report daily to the Australian Securities Exchange (ASX) any transactions made under this program due to regulatory requirements.
The information provided to the ASX, attached as Exhibits 99.1 and 99.2 in the filing, also includes forward-looking statements about the company's intention to repurchase shares from time to time. InvestingPro analysis indicates the company maintains a FAIR financial health score, suggesting stable operational performance.
The decision to repurchase shares is subject to various factors, including the market price of News Corp's stock, prevailing market conditions, applicable laws, and the availability of alternative investment opportunities. The actual outcome of these repurchases could differ materially from the current expectations due to these factors.
News Corp's stock is traded on the Nasdaq Global Select Market under the ticker symbols NASDAQ:NWSA for Class A common stock and NASDAQ:NWS for Class B common stock. The company's filings with the SEC provide additional information about the repurchase program, including the risks and uncertainties associated with such financial decisions.
The 8-K filing emphasizes that the forward-looking statements regarding the repurchase program are valid as of the date of the report. News Corp does not commit to updating these statements publicly to reflect subsequent events or circumstances, except as required by law or regulation.
It is important to note that the information in this article is based on the company's SEC filing and is intended to provide a factual report on News Corp's recent disclosure about its stock repurchase program.
For deeper insights into News Corp's financial health and detailed analysis, including comprehensive Fair Value estimates and expert projections, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks with actionable intelligence for smarter investing decisions.
In other recent news, News Corp also reported a 3% year-over-year increase in revenue to $2.58 billion and a 14% improvement in profitability to $415 million, demonstrating substantial financial growth. However, News Media revenues experienced a 5% decline to $521 million. Despite this, analysts from InvestingPro maintain a positive outlook on News Corp's financial health, supporting the continuation of the stock buyback strategy.
In a strategic shift, News Corp recently sold its Australian media business, Foxtel, to sports streaming company DAZN for $2.1 billion in an equity exchange deal. This move was supported by Loop Capital, which, despite adjusting its price target for News Corp down to $41 from $44, maintained a Buy rating for the company's stock.
These are among the recent developments at News Corporation, reflecting the company's focus on prudent capital management and dedication to delivering value to its shareholders.
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