In a recent transaction on August 15, David B. Pitofsky, General Counsel of News Corp (NASDAQ:NWSA), sold 42,040 shares of the company's Class A Common Stock for an average price of $27.4686, totaling approximately $1,154,779. The transactions occurred in multiple trades ranging from $27.300 to $27.670. Following the sale, Pitofsky's ownership in the company stands at 83,291 shares.
Apart from the sale, the filing also revealed that Pitofsky disposed of shares to satisfy tax withholding obligations upon the vesting of incentive awards. The total number of shares withheld for this purpose amounted to 16,729, valued at $27.32 per share, which equates to a total transaction value of $457,196.
Additionally, Pitofsky acquired shares through the vesting of stock-settled restricted stock units. However, these acquisitions did not involve any monetary transaction, and the price per share was listed as $0 in the filing.
Investors tracking insider transactions at News Corp (NASDAQ:NWS) may note that these sales and acquisitions are part of the normal course of business for executives and are disclosed in compliance with SEC regulations. The details of the transactions, including the number of shares and prices, provide transparency into executive compensation and stock ownership changes within the company.
In other recent news, News Corp reported a record profitability in its Q4 earnings call, marking an impressive finish to the fiscal year 2024. The company's revenues surged by 6% to nearly $2.6 billion, and profitability improved by 11% to $380 million. Key drivers of this strong performance included the company's book publishing, digital real estate services, and Dow Jones segments. The company also announced a partnership with OpenAI and outlined plans for digital expansion and cost efficiencies for fiscal 2025.
News Corp's digital real estate services segment saw a 21% revenue increase, Dow Jones grew by 4%, and HarperCollins' EBITDA rose by a whopping 250%. The company is also considering legal action against advertising industry bodies and is reviewing strategic options for the Foxtel Group. Despite challenges in the U.K. digital advertising due to platform algorithm changes, News Corp expects improvements in fiscal 2025.
The company anticipates improvements across its segments in the coming year. It aims to continue its digital expansion and pursue cost efficiencies and new revenue opportunities. Partnerships with OpenAI and the London Stock Exchange Group (LON:LSEG) are expected to drive future growth, despite a decline in News Media revenues by 5% YoY.
InvestingPro Insights
As investors analyze the latest insider transactions at News Corp (NASDAQ:NWS), it's essential to consider the company's financial health and market performance. With a market capitalization of $16.14 billion, News Corp's valuation reflects its position in the industry. The company's Price-to-Earnings (P/E) ratio, a key metric for assessing a stock's value, stands at 58.82, indicating a premium compared to the market average. However, when adjusted for the last twelve months as of Q4 2024, the P/E ratio appears more favorable at 44.65.
InvestingPro Tips highlight the PEG Ratio of 0.76 for the same period, suggesting that the company's earnings growth rate is considered undervalued relative to its earnings growth potential. This could be an attractive point for investors looking for growth at a reasonable price. Additionally, News Corp has maintained a steady revenue growth of 2.09% over the last twelve months as of Q4 2024, with a more robust quarterly growth rate of 5.92% in Q4 2024, showcasing its ability to increase its revenue streams over time.
For investors interested in a company's profitability and operational efficiency, News Corp's Gross Profit Margin is a robust 50.41%, reflecting a strong ability to control costs relative to revenue. The Operating Income Margin of 7.79% also provides insight into the company's operational efficiency. On the shareholder returns front, News Corp offers a dividend yield of 0.7%, with the last dividend having an ex-date of March 12, 2024.
Considering these financial metrics and the recent insider transactions, investors can gain a more nuanced understanding of News Corp's performance and potential. For those seeking more in-depth analysis, InvestingPro offers additional tips, with a total of [insert number] tips available to help investors make informed decisions.
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