Analysts See 29.11% Upside Potential in News Corporation (NWSA)

For this quarter, Wall Street analysts forecast News Corporation (NWSA) revenue in a range of $2.63 billion to $2.68 billion, which should be compared with $0 generated last year.The shares have dropped -4% since the company’s Jun-18 earnings report. Over the past 12 fiscal quarters, News Corporation (NASDAQ:NWSA) has topped consensus earnings estimates in 8 quarters (66%), missed earnings in 3 quarters (25%), whereas at 1 occasion EPS met analyst expectations. NWSA last reported earnings on November 07, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.17 per share, -99.94% change on the same period last year. That was better than consensus for $0.04. Revenue for the recent quarter stood at $2.52 billion, up 23% on last year and below the $2.54 billion predicted by analysts.

NWSA’s 50 day simple moving average (SMA 50) price is $13.14 and its 200-day simple moving average (SMA 200) price is $14.67. The company’s stock currently has a total float of 503.8M shares. Its weekly volatility is hovering around 3.01% and felt 2.97% volatility in price over a month. On the upside, the share price will test short term resistance at around $12.71. On a downside, the stock is likely to find some support, which begins at $12.27. The failure to get near-term support could push it to $12.08.

Separately, it has been reported that multiple insider activity took place at News Corporation (NWSA). CEO Thomson Robert J acquired 72,000 shares for $72,000 in transaction occurred on 2018/08/15. After making this transaction, the CEO owns a direct stake of 1,017,360 shares, worth $897,840, as per the last closing price. On 2017/12/04 Halpin Kevin, Deputy CFO at NWSA, dumped 2,468 shares at an average price of $16.66 per share. The selling total is valued at $124,700.

Deputy CFO, Halpin Kevin had divested 5,000 shares for $12,468 through a trade on 2017/11/28. Following this activity, the insider holds 80,500 shares worth $155,476 as of recent close. Wall Street’s most bullish News Corporation (NASDAQ:NWSA) analysts are predicting the share price to blow past $20 per share during the next 12 months. The current median share price forecast by them is $15.23, suggesting that the stock could increase 22.13% in that time frame. The average price target of $16.1 calls for a nearly 29.11% increase in the stock price.

It had seen a positive analyst call from Goldman, which upgraded the stock from Neutral to Buy on October 09. Analysts at Loop Capital, shed their negative views on September 04 by lifting it fromHold to Buy. The stock lost favor of Morgan Stanley analysts who expressed their lack of confidence in it using a downgrade from Equal-Weight to Underweight on August 20.

Moreover, it trades for 26.99 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.79x price/book and 0.79x price/sales. Compared to others, News Corporation is in a different league with regards to profitability, having net margins of -15.6%. To put some perspective around this, the industry’s average net margin is 8%. NWSA’s ROE is -15.2%, which is also considerably worse than the industry’s ROE of 4.41%. It’s also very liquid in the near term, with a current ratio of 1.3. The stock has a debt/capital of 0.2.

News Corporation (NASDAQ:NWSA) shares went down -3.26% in Thursday’s session, putting the price tag at $12.47 plus $7.5B in market capitalization. Earlier in the session, the stock traded between $12.32 and $12.76. Trading activity significantly improved as the volume at ready counter increased to 4,156,189 shares versus 3,788,680 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,746,405 shares. The stock is now 1.96% above against its bear-market low of $12.23 on September 18, 2018. It has retreated -38.65% since it’s 52-week high of $17.29 reached in January. Now the market price is down -23.96% on the year and down -23.07% YTD.