In a recent move to enhance shareholder value, News Corporation has announced the continuation of its stock repurchase program. The company, a global leader in news publishing with a market capitalization of $16.15 billion, has been authorized to buy back up to $1 billion worth of its Class A and Class B common stock. According to InvestingPro data, the company maintains a GOOD financial health score, having delivered a solid 12.79% return year-to-date.
The repurchase program, which was previously disclosed, is part of News Corp (NASDAQ:NWSA)'s strategic efforts to manage its capital allocation. With strong fundamentals including $750 million in free cash flow and $1.27 billion in EBITDA, the company appears well-positioned to execute this program.
The company provided detailed information regarding the repurchases to the Australian Securities Exchange (ASX), as required by ASX rules, and disclosed the transactions in its quarterly and annual reports. For deeper insights into News Corp's financial health and growth potential, InvestingPro subscribers can access comprehensive analysis and exclusive ProTips.
The SEC filing made on Tuesday, December 31, 2024, provides the most recent information on News Corp's repurchase program, underscoring the company's focus on prudent capital management and its dedication to delivering value to its shareholders. Based on InvestingPro's Fair Value analysis, News Corp currently appears slightly overvalued. Discover more insights about News Corp and other media companies in InvestingPro's comprehensive research reports, available for over 1,400 US stocks.
In other recent news, News Corporation continues to execute its $1 billion stock repurchase program, targeting its Class A and Class B common stock. This initiative is a part of the company's broader strategy to manage its capital effectively. Despite not specifying the exact number of shares to be repurchased or the timeline for completion, News Corp has been providing daily updates to the Australian Securities Exchange (ASX) regarding transactions under this program.
News Corp's recent financial performance has shown substantial growth with 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 Corp's financial health, supporting the continuation of the stock buyback strategy.
In a strategic shift, News Corp recently sold its Australian media business, Foxtel, to sports streaming company DAZN for $2.1 billion in an equity exchange deal. This move was supported by Loop Capital, which, despite adjusting its price target for News Corp down to $41 from $44, maintained a Buy rating for the company's stock.
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