News Corp (NASDAQ:NWSA) has disclosed the continuation of its stock repurchase program, with plans to buy back up to $1 billion of its Class A and Class B common stock. The company, known for its global media and publishing operations, confirmed the repurchase initiative in a recent SEC filing dated June 28, 2024.
Under the program, News Corp is authorized to repurchase its shares from time to time, subject to market conditions and other factors. The buyback plan is part of the company's strategy to return value to shareholders and optimize its capital structure.
The repurchase transactions are reported daily to the Australian Securities Exchange (ASX) in accordance with regulatory requirements. News Corp also includes updates on the program in its quarterly and annual reports to provide transparency to its shareholders and the market.
This repurchase program underscores News Corp's focus on shareholder value and prudent financial management. The company's stock is traded on the Nasdaq Global Select Market under the tickers NASDAQ:NWSA for Class A shares and NASDAQ:NWS for Class B shares.
The disclosure in the SEC filing is based on a press release statement.
In other recent news, News Corp reported a significant 53% increase in free cash flow to $491 million in the third quarter of fiscal year 2024. This positive trend is largely due to growth in digital subscriptions and cost savings, with digital revenues now making up over half of the company's total revenue.
As part of its strategic focus, News Corp has announced plans for digital expansion, including The Times of London's venture into the US market. These recent developments highlight the company's ongoing shift towards a more digital-focused business model.
InvestingPro Insights
With News Corp's announcement of its $1 billion stock repurchase program, investors might be keen to understand the company's financial health and market performance. The latest data from InvestingPro shows a current market capitalization of $15.85 billion, reflecting the size and stability of the company in the market. Despite a challenging environment, News Corp has managed a gross profit margin of 49.55% over the last twelve months as of Q3 2024, indicating a strong ability to retain earnings from its sales.
Investors looking at long-term growth prospects should note the company's P/E ratio, which stands adjusted at 48.62 for the same period. While this may seem high, it may also reflect investor confidence in future earnings potential. Additionally, News Corp has experienced a 1-year price total return of 42.6%, showcasing a solid performance in shareholder returns over the past year.
For those considering investing in News Corp, there are additional InvestingPro Tips available that delve deeper into the company's financial metrics and market predictions. As of now, there are 7 more tips that can provide further guidance. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which can offer valuable insights for your investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.