Fox Corp's (NASDAQ:FOX) Chief Financial Officer, Steven Tomsic, has sold a total of 30,000 shares of the company's Class A Common Stock for an aggregate sale price of approximately $1.03 million, according to a recent SEC filing. The transactions were executed on June 7, 2024, with the shares being sold at prices ranging from $34.20 to $34.35 per share, resulting in a weighted average sale price of $34.26.
The sale reduced Tomsic's direct ownership in the media giant to 110,568 shares following the transaction. The filing indicated that the shares were sold in multiple open market transactions. As is customary with such filings, Tomsic has agreed to provide further details regarding the number of shares sold at each separate price within the range if requested by the SEC staff, Fox Corp, or any stockholder of the issuer.
Investors often monitor insider transactions like these for insights into the sentiment of high-ranking executives within a company about the stock's future performance. However, it's important to note that such sales could be motivated by a variety of personal financial considerations and not necessarily directly reflect the executive's outlook on the company's future.
Fox Corp, known for its presence in the television broadcasting industry, remains a significant player in the media sector. The company's stock performance and corporate decisions are closely watched by investors looking to gauge the health and direction of the media landscape.
In other recent news, Fox Corporation has highlighted its Q3 growth and expansion of its streaming service, Tubi. Despite a decline in advertising revenues due to the absence of the Super Bowl and fewer NFL broadcasts, the company reported a 7% increase in EBITDA for the third quarter of fiscal year 2024. Affiliate revenue fees also saw a rise of 4%, while Tubi's revenue surged by 22%.
A noteworthy development includes the company's commitment to shareholder value, as evidenced by the repurchase of $300 million of shares and payment of $125 million in dividends. Fox Corporation ended the quarter with a robust balance sheet, holding $3.8 billion in cash.
In terms of future strategies, Fox Corporation is actively seeking M&A opportunities aligned with its strategic goals, and expresses confidence in the resurgence of political advertising. The company also plans to reach non-traditional pay TV viewers through a sports joint venture.
These recent developments indicate Fox Corporation's continued growth in key areas such as affiliate fees and streaming services, despite challenges in the advertising segment.
InvestingPro Insights
The recent insider sale by Fox Corp's (NASDAQ:FOX) CFO Steven Tomsic has caught the attention of investors, raising questions about the company's stock outlook. In light of this event, it's beneficial to consider some key metrics and insights from InvestingPro that may provide a broader perspective on the company's financial health and stock performance.
InvestingPro data shows that Fox Corp is trading at a P/E ratio of 10.74, which is considered low relative to near-term earnings growth. This suggests that the stock may be undervalized, offering an attractive entry point for value investors. Additionally, the company has a robust return on assets at 7.27% for the last twelve months as of Q3 2024, indicating efficient management of its resources.
From a shareholder's perspective, Fox Corp exhibits a strong track record with a dividend growth of 4.0% and a dividend yield of 1.63%, as of the latest data. This is further complemented by the company's performance over the last three months, with a 22.48% price total return, showcasing significant momentum in its stock value.
InvestingPro Tips highlight that Fox Corp has been actively engaging in share buybacks, which is typically a sign of management's confidence in the company's valuation and future prospects. Furthermore, the company has consistently raised its dividend for three consecutive years, reinforcing its commitment to returning value to shareholders.
For investors seeking more comprehensive analysis and additional insights on Fox Corp, there are 11 more InvestingPro Tips available at https://www.investing.com/pro/FOX. These tips can provide deeper understanding and assist in making more informed investment decisions. Additionally, users can take advantage of the special offer and get an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24.
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