FOX (NASDAQ:FOXA) Shares Gap Down – Should You Sell?

Fox Corporation (NASDAQ:FOXA) shares gapped down before the market opened on Monday . The stock had previously closed at $65.85, but opened at $56.98. FOX shares last traded at $53.9360, with a volume of 5,210,751 shares changing hands.

FOX News Summary

Here are the key news stories impacting FOX this week:

• Positive Sentiment: The deal could strengthen Fox’s long-term streaming and ad-tech strategy by combining its live sports, news, and Tubi assets with Roku’s connected-TV platform and audience reach. Fox to buy streaming device maker Roku for $22 billion
• Neutral Sentiment: Fox agreed to pay $160 per Roku share, including $96 in cash and 0.9693 Fox Class A shares, and said Fox shareholders would own about 73% of the combined company. Fox Corp to acquire Roku in $22B deal
• Negative Sentiment: Investors are reacting negatively to the size of the purchase, with reports calling it a “worst day on record” type move for Fox stock as the market questions whether the company is overpaying for Roku. Fox Stock Eyes Worst Day on Record After Buyout News
• Negative Sentiment: A law firm is already investigating whether Fox shareholders are receiving a fair price in the transaction, adding another overhang as the market assesses deal risk and potential shareholder pushback. FOXA, FOX Stock Alert: Halper Sadeh LLC is Investigating Whether Fox Corporation is Obtaining a Fair Price for its Shareholders

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on FOXA shares. Argus raised shares of FOX to a “hold” rating in a research report on Thursday, February 19th. Zacks Research raised FOX from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, May 13th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $79.00 target price on shares of FOX in a research note on Tuesday, May 12th. JPMorgan Chase & Co. boosted their target price on shares of FOX from $69.00 to $70.00 and gave the company a “neutral” rating in a research note on Tuesday, May 12th. Finally, Barclays boosted their target price on shares of FOX from $63.00 to $67.00 and gave the company an “equal weight” rating in a research note on Tuesday, May 12th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $74.86.

FOX Stock Performance

The business’s 50-day moving average price is $64.19 and its 200-day moving average price is $65.19. The company has a debt-to-equity ratio of 0.60, a quick ratio of 2.65 and a current ratio of 2.90. The stock has a market cap of $23.00 billion, a P/E ratio of 14.56, a P/E/G ratio of 3.42 and a beta of 0.51.

FOX (NASDAQ:FOXA) last issued its quarterly earnings data on Monday, May 11th. The company reported $1.32 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.02 by $0.30. FOX had a net margin of 10.56% and a return on equity of 18.90%. The firm had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.78 billion. During the same quarter in the previous year, the firm posted $1.10 EPS. The company’s revenue for the quarter was down 8.6% compared to the same quarter last year. As a group, sell-side analysts expect that Fox Corporation will post 4.93 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. SG Americas Securities LLC boosted its stake in FOX by 346.6% during the fourth quarter. SG Americas Securities LLC now owns 128,029 shares of the company’s stock valued at $9,355,000 after buying an additional 99,363 shares during the last quarter. Handelsbanken Fonder AB boosted its stake in FOX by 85.3% during the fourth quarter. Handelsbanken Fonder AB now owns 88,009 shares of the company’s stock valued at $6,431,000 after buying an additional 40,515 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its stake in FOX by 3.0% during the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 572,145 shares of the company’s stock valued at $41,807,000 after buying an additional 16,716 shares during the last quarter. Strs Ohio lifted its holdings in shares of FOX by 7.6% in the 4th quarter. Strs Ohio now owns 332,444 shares of the company’s stock valued at $24,292,000 after acquiring an additional 23,475 shares during the last quarter. Finally, Geode Capital Management LLC lifted its holdings in shares of FOX by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 6,534,627 shares of the company’s stock valued at $476,248,000 after acquiring an additional 29,923 shares during the last quarter. Institutional investors own 52.52% of the company’s stock.

FOX Company Profile

Fox Corporation (NASDAQ: FOXA) is a U.S.-based media company focused on television broadcasting, cable news and sports programming, and digital distribution. The company was formed in 2019 as the successor to certain assets of 21st Century Fox after a transaction that transferred many film and television studio assets to The Walt Disney Company. Fox Corp’s operations center on the Fox Broadcasting network, a portfolio of local television stations, national news and business cable networks, and sports media properties.

Fox produces, acquires and distributes a range of live and recorded programming, including news, opinion and commentary, national and local sports telecasts, and general entertainment.