This AI stock is ’severely undervalued’ with profits set to rise 5x in Q4: analyst
News Corporation (NASDAQ:NWSA, NASDAQ:NWS) reported Monday that it continues to operate under its previously announced stock repurchase programs, which authorize the company to acquire up to $1 billion in aggregate of its outstanding Class A and Class B common shares. The buyback represents approximately 6.6% of the company’s current $15.22 billion market capitalization, with shares trading at $26.04 as of the latest close.
The company stated that, as required by the Australian Securities Exchange (ASX), it provides daily disclosures to the ASX regarding any transactions made under these repurchase programs. News Corp also includes information about the repurchase activity in its quarterly and annual reports. With a "GOOD" financial health score and $736 million in levered free cash flow, the company appears well-positioned to execute its buyback program. InvestingPro analysis indicates News Corp is currently undervalued compared to its Fair Value.
The filing reiterated that the company’s intent to repurchase shares, as disclosed to the ASX and in U.S. Securities and Exchange Commission (SEC) filings, includes forward-looking statements based on management’s current expectations. The company noted that actual results may differ due to factors such as market price fluctuations, general market conditions, securities laws, and other risks as described in its SEC filings.
This information is based on a press release statement included in the company’s Form 8-K filing with the SEC.
In other recent news, News Corp has provided updates on its ongoing stock repurchase programs. The company is authorized to buy back up to $1 billion in total of its outstanding Class A and Class B common shares. News Corp is required to disclose daily transactions related to these repurchase programs to the Australian Securities Exchange, as per ASX rules. These disclosures are also included in the company’s quarterly and annual reports. The latest SEC filing from News Corp includes exhibits of the information provided to the ASX. News Corp has not disclosed specific repurchase amounts or transaction dates in its recent updates. The company has reiterated that its plans to repurchase shares are forward-looking and subject to various factors such as market conditions and applicable laws.
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