NEW YORK – News Corporation, the global media and information services company, continues to execute its stock repurchase program, as confirmed in its latest 8-K filing with the Securities and Exchange Commission (SEC). Under the program, the company is authorized to repurchase up to $1 billion of its Class A common stock and Class B common stock.
The company has been providing daily updates to the Australian Securities Exchange (ASX) regarding transactions made under the program, as required by ASX rules. These transactions are also disclosed in the company's quarterly and annual reports.
The repurchase program is part of News Corp (NASDAQ:NWSA)'s broader strategy to manage its capital allocation and enhance shareholder value. The company's decision to repurchase shares from time to time is based on various factors, including the market price of its stock, general market conditions, and available investment opportunities.
The 8-K filing noted that the information provided contains forward-looking statements, which are based on management's current expectations and beliefs. However, actual results may differ due to various factors, including market fluctuations and changes in circumstances. News Corp has stated that it does not have any obligation to update any forward-looking statements publicly, except as required by law or regulation.
This repurchase program reflects News Corp's confidence in its business and its commitment to delivering value to its shareholders. The company's shares are traded on the Nasdaq Global Select Market under the symbols NWSA for Class A common stock and NWS for Class B common stock.
In other recent news, News Corp reported a 6% increase in Q4 revenue, reaching approximately $2.6 billion, and an 11% rise in profitability to $380 million. The company is also continuing its $1 billion stock repurchase program, buying back its Class A and Class B common stock. News Corp's subsidiary, REA Group Ltd, has proposed an increased bid for Rightmove (OTC:RTMVY) plc, a move that could potentially expand its digital real estate business.
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 developments highlight News Corp's strategic maneuvers in the digital real estate sector and its ongoing commitment to providing value to shareholders.
InvestingPro Insights
As News Corporation continues its stock repurchase program, current metrics from InvestingPro can offer investors additional context on the company's financial health and market performance. News Corp's adjusted market capitalization stands at $15.34 billion, reflecting its current market valuation. The company has a price-to-earnings (P/E) ratio of 59.68, which adjusts to 43.48 when looking at the last twelve months as of Q4 2024. This suggests that investors are willing to pay a higher price for each dollar of earnings, potentially due to expectations of future growth, as indicated by a PEG ratio of 0.74 during the same period.
InvestingPro Tips highlight that News Corp's revenue growth has been modest, with a 2.09% increase over the last twelve months as of Q4 2024, and a more significant quarterly revenue growth of 5.92% in Q4 2024. Additionally, the company's gross profit margin stands at a robust 50.41%, indicating efficiency in managing the cost of goods sold relative to sales. These financial indicators, alongside a dividend yield of 0.76% as of the same quarter, can be particularly relevant for investors assessing the company's performance and its stock repurchase strategy's potential impact on shareholder value.
For those seeking further guidance, InvestingPro has a wealth of additional tips on News Corporation. Currently, there are 15 more InvestingPro Tips available, which can provide deeper insights into the company's financials and market position.
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