NEW YORK - News Corporation has reaffirmed its commitment to repurchasing its shares, announcing the continuation of its stock repurchase program, which is authorized to acquire up to $1 billion of the company's outstanding Class A and Class B common stock. The disclosure, required by the Australian Securities Exchange rules, was also made public in a filing with the U.S. Securities and Exchange Commission on Thursday.
Under the program, News Corp (NASDAQ:NWSA) has the discretion to buy back shares from time to time, depending on market conditions and other factors that may influence the company's decision-making process. The repurchase plan is part of a broader strategy to manage capital allocation and deliver value to shareholders.
The company's latest SEC filing, dated Wednesday, includes forward-looking statements about its intentions to repurchase shares, cautioning that these plans are subject to change based on market dynamics, applicable laws, and other investment opportunities. News Corp also noted that the forward-looking statements are based on current management expectations and could vary significantly due to various risks and uncertainties.
Investors are advised that the information provided in the filing, including the forward-looking statements, should be evaluated considering the risks and factors detailed in News Corp's SEC filings. These documents contain critical insights into the company's operational and financial status and are essential for understanding the potential implications of the repurchase program.
News Corp, headquartered in New York, is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. The company's operations include news publishing, book publishing, digital real estate services, cable network programming in Australia, and pay-TV distribution in Australia.
The repurchase program is a common practice among publicly traded companies, allowing them to return capital to shareholders and potentially increase the value of remaining shares by reducing the number of shares outstanding. The program's continuation reflects News Corp's confidence in its financial health and its commitment to shareholder returns.
This news is based on a press release statement and investors are encouraged to review the original SEC filing for a complete understanding of the terms and potential effects of the repurchase program.
In other recent news, News Corp continues to prioritize shareholder value with the advancement of its $1 billion stock repurchase program. The media conglomerate's Q4 revenue saw a 6% rise, reaching approximately $2.6 billion, while profitability increased by 11% to $380 million. Analysts at Loop Capital and Morgan Stanley have provided their insights on News Corp's financial prospects, maintaining a positive outlook. Loop Capital holds a steady Buy rating with a price target of $39.00, and Morgan Stanley has upgraded its target to $35.00.
News Corp's subsidiary, REA Group Ltd, has withdrawn its potential offer for UK-based Rightmove (OTC:RTMVY) plc. This development aligns with the continuation of the company's share repurchase program. In a separate move, REA Group Ltd issued a revised non-binding proposal to acquire all share capital of Rightmove plc. However, as the proposal is non-binding, there is no guarantee that a formal offer will be made or that any transaction will occur.
These are recent developments providing insights into News Corp's strategic financial decisions and potential growth areas. The company's commitment to its stock repurchase program and its proposed acquisition of Rightmove plc highlights its strategic activities in the digital real estate advertising space. As always, investors are encouraged to monitor these developments closely.
InvestingPro Insights
News Corporation's commitment to its share repurchase program aligns with its strong financial position, as evidenced by recent InvestingPro data. The company's market capitalization stands at $15.17 billion, reflecting its significant presence in the media and information services sector. News Corp's revenue for the last twelve months as of Q4 2024 reached $10.09 billion, with a notable revenue growth of 5.92% in the most recent quarter.
The company's financial health is further underscored by its gross profit margin of 50.41% and an operating income margin of 7.79% for the last twelve months. These figures suggest that News Corp maintains a robust operational efficiency, which supports its ability to continue with the share repurchase program.
InvestingPro Tips highlight additional strengths:
1. News Corp has demonstrated strong revenue growth, with a 2.09% increase over the last twelve months.
2. The company's stock has shown impressive performance, with a 35.82% total return over the past year.
These insights support News Corp's decision to continue its share repurchase program, indicating confidence in its financial stability and future prospects. For investors seeking a deeper understanding of News Corp's potential, InvestingPro offers 15 additional tips that could provide valuable context for investment decisions.
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