Zacks Investment Research Downgrades News Corp. (NWSA) to Sell
News Corp. (NASDAQ:NWSA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors 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 research firms also recently weighed in on NWSA. TheStreet raised shares of News Corp. from a “hold” rating to a “buy” rating in a research report on Monday, August 15th. Morgan Stanley reiterated a “hold” rating on shares of News Corp. in a research note on Thursday, August 18th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and three have assigned a buy rating to the company. The company currently has an average rating of “Hold” and an average price target of $17.13.
News Corp. (NASDAQ:NWSA) opened at 13.96 on Monday. The firm has a 50-day moving average of $13.77 and a 200 day moving average of $12.57. The firm has a market capitalization of $8.10 billion, a PE ratio of 45.77 and a beta of 2.01. News Corp. has a 52 week low of $10.21 and a 52 week high of $15.68.
News Corp. (NASDAQ:NWSA) last released 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 return on equity of 1.95% and a net margin of 2.16%. The company had revenue of $2.23 billion for the quarter, compared to analyst estimates of $2.06 billion. During the same period in the previous year, the business posted $0.07 EPS. The firm’s quarterly revenue was up 5.1% compared to the same quarter last year. Analysts predict that News Corp. will post $0.44 earnings per share for the current year.
The business also recently disclosed a dividend, which will be paid on Wednesday, October 19th. Investors 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 is currently 66.67%.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NWSA. Vanguard Group Inc. raised its position in News Corp. by 1.8% in the second quarter. Vanguard Group Inc. now owns 42,926,641 shares of the company’s stock worth $487,218,000 after buying an additional 769,193 shares during the last quarter. State Street Corp raised its position in News Corp. by 0.5% in the first quarter. State Street Corp now owns 16,030,382 shares of the company’s stock worth $204,712,000 after buying an additional 82,125 shares during the last quarter. BlackRock Institutional Trust Company N.A. raised its position in News Corp. by 2.3% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 9,955,922 shares of the company’s stock worth $127,137,000 after buying an additional 228,067 shares during the last quarter. Ameriprise Financial Inc. raised its position in News Corp. by 49.6% in the second quarter. Ameriprise Financial Inc. now owns 9,327,052 shares of the company’s stock worth $105,859,000 after buying an additional 3,094,200 shares during the last quarter. Finally, Dodge & Cox raised its position in News Corp. by 4.4% in the first quarter. Dodge & Cox now owns 8,318,002 shares of the company’s stock worth $106,221,000 after buying an additional 347,225 shares during the last quarter. 95.59% of the stock is currently owned by hedge funds and other institutional investors.
About News Corp.
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.
Receive News & Stock Ratings for News Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for News Corp. and related stocks with our FREE daily email newsletter.