News Corporation (NASDAQ:NWSA), a global diversified media and information services company with a market capitalization of $16.4 billion, announced on Monday that it will carry on with its stock repurchase program, which authorizes the buyback of up to $1 billion of the company's Class A and Class B common stock.
The announcement comes as the stock trades at $27.86, having delivered a 15.76% return over the past year. This disclosure, required by the Australian Securities Exchange (ASX) rules, was also included in the company's quarterly and annual reports. According to InvestingPro analysis, the company currently appears overvalued compared to its Fair Value.
The buyback program is part of News Corp's ongoing strategy to enhance shareholder value, supported by a healthy financial position with a current ratio of 1.38 and substantial free cash flow of $750 million. The company's management has the discretion to repurchase shares from time to time, depending on market conditions, stock price, alternative investment opportunities, and applicable securities laws. InvestingPro data reveals the company maintains a GOOD overall financial health score, with particularly strong momentum metrics.
According to the statement, the repurchase program is subject to change, and the actual timing, number, and value of shares repurchased will be determined by the company's management based on its evaluation of market conditions and other factors. The company made it clear that there is no fixed end date for the repurchase program and that it may be suspended, modified, or discontinued at any time.
This announcement is based on a press release statement and reflects the company's ongoing efforts to manage its capital structure and deliver value to its shareholders. News Corp's stock repurchase program is part of its broader financial strategy and reflects the company's confidence in its long-term business prospects. For deeper insights into News Corp's valuation and growth potential, InvestingPro subscribers can access comprehensive research reports, including detailed analysis of the company's P/E ratio of 49.68 and analyst price targets, along with over 30 additional premium financial metrics and ProTips.
In other recent news, News Corp continues to execute its $1 billion stock repurchase program, authorizing the buyback of its Class A and Class B common stock, as detailed in recent filings with the U.S. Securities and Exchange Commission. The company's ongoing repurchase activities are reported daily to the Australian Securities Exchange (ASX) in compliance with its rules. In addition to this, News Corp recently sold its Australian media business, Foxtel, to sports streaming company DAZN in a $2.1 billion equity exchange deal.
Citi analysts have initiated coverage on News Corp, issuing a Buy rating with a price target of $36.00, anticipating strategic moves by the company's management that could significantly increase shareholder value. Loop Capital also upheld a Buy rating for the company's stock, despite lowering its price target for News Corp to $41 from $44.
These are recent developments that reflect News Corp's focus on prudent capital management and dedication to delivering value to its shareholders. The company's recent financial performance indicated a 3% year-over-year increase in revenue to $2.58 billion and a 14% improvement in profitability to $415 million. However, News Media revenues experienced a 5% decline to $521 million. Despite this, analysts from InvestingPro maintain a positive outlook on News Corporation's financial health, endorsing the continuation of the stock buyback strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.