Stocks of News Corporation (NWSA) are poised to climb above their peers

News Corporation (NASDAQ: NWSA) stock fell -0.74% on Friday to $17.38 against a previous-day closing price of $17.51. With 1.7 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.23 million shares. During the session, the Broadcasting company that operates in wider Communication Services sector, reached to the highest price of $17.56 whereas the lowest price it dropped to was $17.26. The 52-week range on NWSA shows that it touched its highest point at $26.42 and its lowest point at $14.95 during that stretch. It currently has a 1-year price target of $27.55. With its current market cap of 10.16 billion, NWSA has annualized dividend of $0.20 while the current yield stands at 1.15%. Beta for the stock currently stands at 1.33.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NWSA was up-trending over the past week, with a rise of 1.64%, but this was up by 11.55% over a month. Three-month performance dropped to -16.64% while six-month performance fell -22.31%. The stock lost -28.57% in the past year, while it has lost -22.10% so far this year. A look at the trailing 12-month EPS for NWSA yields 0.84 with Next year EPS estimates of 0.96. For the next quarter, that number is 0.07. This implies an EPS growth rate of 125.80% for this year and 6.89% for next year. EPS is expected to grow by 19.14% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 14.90%.

Float and Shares Shorts:

At present, 588.80 million NWSA shares are outstanding with a float of 504.51 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.17 million, which was 0.88% higher than short shares on Jun 14, 2022. In addition to Mr. Keith Rupert Murdoch AC as the firm’s Exec. Chairman, Mr. Robert J. Thomson serves as its CEO & Director.

Institutional Ownership:

Through their ownership of 97.71% of NWSA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 59.67% of NWSA, in contrast to 37.92% held by mutual funds. Shares owned by individuals account for 0.64%. As the largest shareholder in NWSA with 14.19% of the stake, T. Rowe Price Associates, Inc. holds 55,120,986 shares worth 55,120,986. A second-largest stockholder of NWSA, The Vanguard Group, Inc., holds 52,530,990 shares, controlling over 13.52% of the firm’s shares. Independent Franchise Partners LL is the third largest shareholder in NWSA, holding 29,081,532 shares or 7.49% stake. With a 4.17% stake in NWSA, the T Rowe Price Mid Cap Value Fund is the largest stakeholder. A total of 16,199,577 shares are owned by the mutual fund manager. The T Rowe Price Equity Income Fund, which owns about 3.53% of NWSA stock, is the second-largest Mutual Fund holder. It holds 13,700,000 shares valued at 213.45 million. Vanguard Total Stock Market Index holds 3.51% of the stake in NWSA, owning 13,647,783 shares worth 212.63 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NWSA since 11 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NWSA analysts setting a high price target of $32.00 and a low target of $21.10, the average target price over the next 12 months is $26.94. Based on these targets, NWSA could surge 84.12% to reach the target high and rise by 21.4% to reach the target low. Reaching the average price target will result in a growth of 55.01% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NWSA will report FY 2022 earnings on 08/03/2023. Analysts have provided yearly estimates in a range of $1.05 being high and $0.74 being low. For NWSA, this leads to a yearly average estimate of $0.87. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. News Corporation surprised analysts by $0.01 when it reported $0.16 EPS against a consensus estimate of $0.15. The surprise factor in the prior quarter was $0.16. Based on analyst estimates, the high estimate for the next quarter is $0.19 and the low estimate is $0.02. The average estimate for the next quarter is thus $0.09.

Dividends & Yield:

In terms of dividends, NWSA has a current ratio of $0.20, which is $0.20 over the trailing 12-months, while a dividend of $0.20 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and NWSA currently yields $1.15. In the past year, NWSA’s dividend yield has been $1.15, but when looking at the stock over the past five years, its yield has been $1.31.

Summary of Insider Activity:

Insiders traded NWSA stock several times over the past three months with 7 Buys and 7 Sells. In these transactions, 19,502 shares were bought while 19,502 shares were sold. The number of buy transactions has increased to 47 while that of sell transactions has risen to 53 over the past year. The total number of shares bought during that period was 1,187,150 while 2,086,309 shares were sold.

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