News Corporation (NASDAQ:NWSA) receieved a positive analyst call from Citigroup, which upgraded the stock from Neutral to Buy on January 14. Analysts at Goldman, shed their negative views on October 09 by lifting it fromNeutral to Buy. The stock won favor of Loop Capital analysts who expressed their confidence in it using an upgrade from Hold to Buy on September 04. Morgan Stanley analysts came out with bearish views on August 20 when the call was made. They think the stock is now Underweight compared to to their prior call for Equal-Weight.
News Corporation (NWSA) grew as high as $12.39 on Wednesday before closing at $12.17. The -1.46 percent plunge dragged its market cap to $7.1B. The shares went down as low as $11.99 before recovering. Trading activity significantly improved as the volume at ready counter increased to 3,508,767 shares versus 2,040,775 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,932,233 shares. The stock is now 14.27% above against its bear-market low of $10.65 on December 26, 2018. It has retreated -41.66% since it’s 52-week high of $17.24 reached in January. Now the market price is down -29.16% on the year and up 7.22% YTD.
NWSA’s 50 day simple moving average (SMA 50) price is $12.45 and its 200-day simple moving average (SMA 200) price is $14.03. The company’s stock currently has a total float of 503.8M shares. Its weekly volatility is hovering around 2.1% and felt 2.73% volatility in price over a month. On the upside, the share price will test short term resistance at around $12.38. On a downside, the stock is likely to find some support, which begins at $11.98. The failure to get near-term support could push it to $11.78.
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 $876,240, 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 $121,700.
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 $151,736 as of recent close. Wall Street’s most bullish News Corporation (NASDAQ:NWSA) analysts are predicting the share price to blow past $18.87 per share during the next 12 months. The current median share price forecast by them is $15.16, suggesting that the stock could increase 24.57% in that time frame. The average price target of $15.4 calls for a nearly 26.54% increase in the stock price.
Moreover, it trades for 26.29 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.77x price/book and 0.75x 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 6.56%. NWSA’s ROE is -15.2%, which is also considerably worse than the industry’s ROE of 8.57%. 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.
Shares of News Corporation (NWSA) have dropped -8% since the company’s Sep-19 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. For this quarter, Wall Street analysts forecast revenue in a range of $2.43 billion to $2.62 billion, which should be compared with $2.05 billion generated last year. EPS is seen in a range of $0.07 to $0.13, against the $0.1 reported a year ago.