News Corp. (NASDAQ:NWSA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Monday.
According to Zacks, “News Corporation is in a transitionary phase looking to diversify its revenue streams through strategic acquisitions and operational enhancement. The company is expanding its digital offerings, along with greater emphasis on real estate businesses. These along with strong performance across the Book Publishing and Cable Network Programming divisions favorably impacted the final quarter of fiscal 2016. However, foreign currency headwinds and soft print advertising demand continue to weigh upon the company’s performance to an extent. News Corporation posted the fourth straight quarter of negative earnings surprise, when it reported for fourth quarter results. However, what came as a respite was that the bottom line grew year over year. Total revenue also increased and came ahead of the Zacks Consensus Estimate. We observe that estimates have trended downward following the company’s mixed results.”
A number of other equities analysts have also commented on NWSA. TheStreet raised News Corp. from a “hold” rating to a “buy” rating in a research note on Monday, August 15th. Morgan Stanley reissued a “hold” rating on shares of News Corp. in a research note on Thursday, August 18th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and three have given a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus price target of $17.13.
News Corp. (NASDAQ:NWSA) opened at 13.96 on Monday. News Corp. has a 52 week low of $10.21 and a 52 week high of $15.68. The company has a 50-day moving average price of $13.77 and a 200-day moving average price of $12.57. The stock has a market cap of $8.10 billion, a PE ratio of 45.77 and a beta of 2.01.
News Corp. (NASDAQ:NWSA) last announced its quarterly earnings results on Monday, August 8th. The company reported $0.10 earnings per share for the quarter, missing analysts’ consensus estimates of $0.13 by $0.03. News Corp. had a net margin of 2.16% and a return on equity of 1.95%. The company earned $2.23 billion during the quarter, compared to the consensus estimate of $2.06 billion. During the same quarter last year, the company earned $0.07 earnings per share. The business’s revenue was up 5.1% on a year-over-year basis. Analysts anticipate that News Corp. will post $0.44 earnings per share for the current year.
The company also recently declared a dividend, which will be paid on Wednesday, October 19th. Stockholders of record on Wednesday, September 14th will be paid a dividend of $0.10 per share. The ex-dividend date is Monday, September 12th. News Corp.’s dividend payout ratio (DPR) is presently 66.67%.
Institutional investors have recently modified their holdings of the stock. Adage Capital Partners GP L.L.C. raised its position in shares of News Corp. by 0.5% in the first quarter. Adage Capital Partners GP L.L.C. now owns 568,673 shares of the company’s stock valued at $7,262,000 after buying an additional 3,014 shares during the period. Credit Agricole S A raised its position in shares of News Corp. by 19.8% in the first quarter. Credit Agricole S A now owns 65,350 shares of the company’s stock valued at $835,000 after buying an additional 10,791 shares during the period. Geode Capital Management LLC raised its position in shares of News Corp. by 2.0% in the first quarter. Geode Capital Management LLC now owns 3,405,598 shares of the company’s stock valued at $43,408,000 after buying an additional 66,974 shares during the period. BlueMountain Capital Management LLC raised its position in shares of News Corp. by 15.9% in the first quarter. BlueMountain Capital Management LLC now owns 6,963,170 shares of the company’s stock valued at $88,920,000 after buying an additional 957,265 shares during the period. Finally, TIAA CREF Investment Management LLC raised its position in shares of News Corp. by 10.9% in the first quarter. TIAA CREF Investment Management LLC now owns 487,346 shares of the company’s stock valued at $6,223,000 after buying an additional 47,902 shares during the period. 95.59% of the stock is currently owned by institutional investors and hedge funds.
News Corp. Company Profile
News Corporation is a diversified media and information services company. The Company operates in five segments: News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, and Other. The Company’s business consists of range of media, including news and information services, sports programming in Australia, digital real estate services, book publishing, and pay-television (TV) distribution in Australia, that are distributed under the brands, including The Wall Street Journal, Dow Jones, Herald Sun, The Sun, The Times, HarperCollins Publishers, FOX SPORTS Australia and realestate.com.au.
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