News Corp (NASDAQ:NWSA), currently valued at $16.52 billion by market capitalization, has disclosed its ongoing stock repurchase activities in a recent SEC filing. The company, known for its global media and information services, is actively buying back shares under a program that authorizes up to $1 billion in share repurchases of its Class A and Class B common stock. According to InvestingPro analysis, the stock currently appears overvalued compared to its Fair Value, trading at $29.07 with a P/E ratio of 51.59.
The filing, dated December 11, 2024, outlines the company's obligation to report daily to the Australian Securities Exchange (ASX) any transactions made under this repurchase program. News Corp also commits to providing updates on the program in its quarterly and annual reports to the SEC. The company's strong financial position is reflected in its GOOD Financial Health Score from InvestingPro, supported by $750 million in levered free cash flow over the last twelve months.
The information submitted to the ASX, attached as exhibits to the SEC filing, includes forward-looking statements regarding the company's intention to continue repurchasing its shares from time to time. These statements are subject to various factors, including market conditions, stock prices, and other investment opportunities, which may affect the actual outcomes.
News Corp's repurchase initiative is a common corporate strategy employed to return value to shareholders, potentially increasing the value of remaining shares and signaling confidence in the company's financial health.
The SEC filing emphasizes that these forward-looking statements are based on current management expectations and are inherently uncertain. News Corp acknowledges that actual results could differ materially from those anticipated in these statements, citing potential risks and uncertainties detailed in its SEC filings.
For deeper insights into News Corp's financial health and future prospects, investors can access comprehensive analysis and over 30 key financial metrics through InvestingPro's detailed Research Report, part of its coverage of 1,400+ US equities.
Investors and market observers often scrutinize share buyback announcements for insights into a company's performance and management's outlook. News Corp's disclosure, based on this SEC filing, provides a transparent account of its repurchase activities, fulfilling regulatory requirements and informing stakeholders of its ongoing financial strategies.
The filing was signed by Michael L. Bunder, Senior Vice President, Deputy General Counsel, and Corporate Secretary of News Corp, and was dated December 12, 2024.
In other recent news, News Corp continues to make significant progress in its stock repurchase program, nearing its authorized limit of $1 billion for Class A and Class B common stock. This strategy is part of the company's ongoing efforts to enhance shareholder value.
The company's recent financial performance for the first quarter of fiscal year 2025 shows substantial growth. Revenue rose by 3% year-over-year to $2.58 billion, and profitability improved by 14% to $415 million. Net income surged to $144 million, and earnings per share climbed to $0.21, a significant increase from $0.05 the previous year.
However, News Media revenues experienced a 5% decline to $521 million. Analysts from InvestingPro maintain a positive outlook on News Corp's financial health, supporting the ongoing stock buyback strategy. These are recent developments in News Corp's financial and strategic operations.
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