News Corp (NASDAQ:NWSA) has disclosed its ongoing share repurchase efforts, as part of a $1 billion stock buyback program, to the Australian Securities Exchange (ASX). The media conglomerate, which is listed on the Nasdaq Global Select Market under the tickers NASDAQ:NWSA for its Class A common stock and NASDAQ:NWS for its Class B common stock, is required to report its buyback transactions on a daily basis to the ASX.
In other recent news, News Corporation continues its $1 billion stock repurchase program, buying back Class A and Class B common stock. This initiative is part of the company's broader strategy to manage its capital allocation and enhance shareholder value.
Additionally, News Corp reported a 6% increase in Q4 revenue, reaching approximately $2.6 billion, with profitability rising by 11% to $380 million. In the digital real estate sector, News Corp's subsidiary, REA Group Ltd, has proposed an increased bid for Rightmove (OTC:RTMVY) plc, potentially expanding its business in this area.
Analysts from Loop Capital maintained their Buy rating on News Corp with a steady price target of $39.00, while Morgan Stanley upgraded its stock price target for the company to $35.00. These recent developments highlight News Corp's strategic financial maneuvers and potential growth in the digital real estate sector.
InvestingPro Insights
News Corp's proactive approach to capital allocation through its $1 billion stock buyback program is a strategic move that aligns with its financial management goals. Real-time data from InvestingPro reveals a current market capitalization of $15.34 billion USD, reflecting the company's substantial presence in the market. With a Price/Earnings (P/E) ratio of 60.17, investors may find News Corp's stock to be on the higher end of valuation. However, when adjusted for the last twelve months as of Q4 2024, the P/E ratio appears more favorable at 43.86, suggesting potential for future earnings growth.
The company's Gross Profit Margin stands at an impressive 50.41% for the same period, indicating a strong ability to generate profits from its revenue. Furthermore, News Corp has demonstrated a steady revenue growth of 2.09% over the last twelve months as of Q4 2024, with a more significant quarterly increase of 5.92%. These figures underscore the company's capacity to expand its financial base over time.
InvestingPro Tips offer additional insights for potential investors. One tip highlights the company's PEG Ratio of 0.75, which may suggest that the stock is undervalued relative to its earnings growth projections. Another tip points to the Price/Book ratio of 1.91, which could indicate that the stock is reasonably priced in relation to its book value. For those seeking further analysis, InvestingPro offers numerous additional tips to help inform investment decisions.
As News Corp navigates its share repurchase strategy, these metrics and InvestingPro Tips can provide investors with a deeper understanding of the company's financial health and market position. With the next earnings date set for November 6, 2024, stakeholders will be keenly watching for the company's performance updates.
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