News Corporation (NASDAQ:NWSA), a global media and information services company, has disclosed ongoing transactions under its stock repurchase program in a recent SEC filing. The program authorizes the repurchase of up to $1 billion of the company's Class A and Class B common stock.
The filing, dated July 5, 2024, indicates that News Corp (NASDAQ:NWSA) is required to report daily to the Australian Securities Exchange (ASX) any transactions conducted under the repurchase program. These reports are also included in the company's quarterly and annual filings to the SEC.
The repurchase program is part of News Corp's broader efforts to manage its capital effectively and deliver value to its shareholders. By buying back shares, the company aims to reduce the number of shares outstanding, potentially increasing the value of remaining shares.
In other recent news, News Corp has also reported a significant 53% increase in free cash flow to $491 million in the third quarter of fiscal year 2024, primarily driven by growth in digital subscriptions and cost savings. Digital revenues now account for over half of the company's total revenue, indicating a successful shift towards a more digital-focused business model.
Furthering its digital expansion, News Corp has announced plans for The Times of London's venture into the US market.
InvestingPro Insights
As News Corporation (NASDAQ:NWSA) continues its stock repurchase program, a deeper look into the company's financial health through InvestingPro metrics provides investors with a clearer picture. With an adjusted market capitalization of $15.81 billion, News Corp is navigating the market with a Price/Earnings (P/E) Ratio that stands at 77.94, which adjusts down to 48.47 when considering the last twelve months as of Q3 2024. This suggests a high valuation relative to earnings, which can be a point of caution for value-focused investors.
InvestingPro Tips highlight that News Corp's PEG Ratio, a metric that relates the P/E ratio to earnings growth, is -3.62, indicating that the market may be expecting earnings to decline relative to the company's overall valuation. Additionally, the company's Price/Book ratio is 1.96, which could attract investors seeking companies with potentially undervalued assets. It's noteworthy that News Corp's revenue has slightly contracted by 1.77% over the last twelve months as of Q3 2024, which may influence the company's repurchase strategy and overall investor sentiment.
For those interested in deeper analysis and additional InvestingPro Tips, there are currently 5 more tips available to help fine-tune investment decisions. To access these insights, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With the next earnings date on August 7, 2024, and a fair value estimate of $22.48 according to InvestingPro, investors have a suite of data to gauge News Corp's trajectory and make informed decisions.
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