News Corporation, the global media and information services company, has reiterated its ongoing commitment to its stock repurchase program, according to a recent filing with the Securities and Exchange Commission (SEC). The program, which authorizes the repurchase of up to $1 billion worth of the company's Class A common stock and Class B common stock, remains a key focus for the company's capital allocation strategy.
The filing, dated Thursday, details the company's requirement to disclose daily transactions of the repurchase program to the Australian Securities Exchange (ASX), where News Corp (NASDAQ:NWSA)'s stock is also traded. This disclosure is in addition to the regular updates provided in the company's quarterly and annual reports.
News Corp's management has expressed that the repurchase activity will be carried out depending on several market factors, including the market price of the company's stock, prevailing market conditions, and applicable securities laws. The company has also mentioned alternative investment opportunities as a factor in its repurchasing decisions.
The company's Class A and Class B common stocks are listed on the Nasdaq Global Select Market under the symbols NWSA and NWS, respectively. News Corp's commitment to the repurchase plan underscores its confidence in the intrinsic value of its stock and its dedication to enhancing shareholder value.
The latest information provided to the ASX, as referenced in Exhibits 99.1 and 99.2 of the SEC filing, contains the specifics of the repurchase transactions conducted on the dates noted within the exhibits.
This news is based on statements from a press release.
In other recent news, News Corp reported an increase in profitability for the third quarter of fiscal year 2024, with a 53% surge in free cash flow to $491 million. Despite a slight decline in total revenues and earnings per share, the company saw positive trends in digital subscriptions and cost savings. Digital revenues now account for over half of the company's total revenue, a significant milestone.
News Corp also revealed plans for digital expansion, particularly into the US market with The Times of London. These recent developments reflect the company's strategic focus on transforming its business model, emphasizing recurring and digital revenues while managing cost efficiencies.
InvestingPro Insights
As News Corporation (NWSA) continues to execute its stock repurchase program, the latest financial metrics from InvestingPro provide a snapshot of the company's current market standing. With an adjusted market capitalization of $15.6 billion, News Corp maintains a significant presence in the media industry. The company's P/E ratio, a key indicator of investor expectations, stands at a historical 76.43, but has adjusted to a lower 47.84 over the last twelve months as of Q3 2024, which may suggest a more favorable outlook on earnings.
InvestingPro Tips indicate that while News Corp's revenue has seen a slight decline of 1.77% over the last twelve months as of Q3 2024, its gross profit margin remains strong at 49.55%. This robust margin reflects the company's ability to manage its cost of goods sold effectively, a critical aspect of maintaining profitability amidst revenue fluctuations. Additionally, the company's operating income margin of 7.83% demonstrates its operational efficiency in generating profits from its core business activities.
Investors considering capitalizing on News Corp's activities may find the 1 Year Price Total Return of 42.39% particularly compelling, suggesting a strong performance over the past year. Moreover, the company's stock is trading close to its 52-week high at 97.11% of the peak value, which could signal market confidence in its ongoing initiatives and future prospects. For those looking to explore additional insights, InvestingPro offers a range of tips to further inform investment decisions – there are 15 more tips available for News Corp on the platform. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of data and analysis to guide your investment strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.