Zacks Investment Research Upgrades News Corp Class A (NWSA) to “Hold”

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News Corp Class A (NASDAQ:NWSA) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Tuesday.

According to Zacks, “Shares of News Corporation have declined and underperformed the industry in the past three months. The company remains vulnerable to foreign currency headwinds and soft print advertising demand. Advertising revenue at News and Information Services segment fell 2% during the final quarter of fiscal 2018 on account of sluggishness in the print advertising market and the decision to stop The Wall Street Journal’s international print editions. Nevertheless, the company is concentrating on cost cutting, expanding digital offerings with greater emphasis on real estate services to mitigate the impact of the same. These endeavors have helped the company to post fourth straight quarter of positive earnings and sales surprises. The top line also grew year over year. The performance was driven by solid Foxtel’s results, persistent momentum in the Book Publishing and Digital Real Estate Services segments along with gains from currency tailwinds.”

A number of other analysts have also issued reports on the stock. Morgan Stanley lowered shares of News Corp Class A from an “equal weight” rating to an “underweight” rating and reduced their price target for the stock from $17.00 to $12.50 in a research report on Monday, August 20th. ValuEngine lowered shares of News Corp Class A from a “buy” rating to a “hold” rating in a research report on Tuesday, July 24th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and an average price target of $15.50.

NASDAQ NWSA opened at $13.34 on Tuesday. The company has a quick ratio of 1.22, a current ratio of 1.33 and a debt-to-equity ratio of 0.14. The company has a market capitalization of $7.81 billion, a PE ratio of 30.28, a P/E/G ratio of 4.44 and a beta of 1.88. News Corp Class A has a 52-week low of $12.84 and a 52-week high of $17.29.

News Corp Class A (NASDAQ:NWSA) last posted its quarterly earnings results on Thursday, August 9th. The company reported $0.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.06 by $0.02. The business had revenue of $2.69 billion during the quarter, compared to analyst estimates of $2.36 billion. News Corp Class A had a negative net margin of 16.78% and a positive return on equity of 2.41%. The firm’s revenue was up 29.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.11 earnings per share. sell-side analysts predict that News Corp Class A will post 0.46 EPS for the current fiscal year.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Dupont Capital Management Corp raised its position in News Corp Class A by 74.0% during the second quarter. Dupont Capital Management Corp now owns 7,984 shares of the company’s stock valued at $124,000 after acquiring an additional 3,396 shares in the last quarter. Asset Management One Co. Ltd. raised its position in News Corp Class A by 0.7% during the first quarter. Asset Management One Co. Ltd. now owns 577,254 shares of the company’s stock valued at $9,121,000 after acquiring an additional 4,221 shares in the last quarter. Norinchukin Bank The raised its position in News Corp Class A by 14.6% during the first quarter. Norinchukin Bank The now owns 35,093 shares of the company’s stock valued at $554,000 after acquiring an additional 4,472 shares in the last quarter. First Republic Investment Management Inc. raised its position in News Corp Class A by 34.6% during the first quarter. First Republic Investment Management Inc. now owns 18,227 shares of the company’s stock valued at $287,000 after acquiring an additional 4,682 shares in the last quarter. Finally, LS Investment Advisors LLC raised its position in News Corp Class A by 28.7% during the first quarter. LS Investment Advisors LLC now owns 26,807 shares of the company’s stock valued at $424,000 after acquiring an additional 5,970 shares in the last quarter. 60.90% of the stock is owned by institutional investors and hedge funds.

About News Corp Class A

News Corporation, a media and information services company, creates and distributes content for consumers and businesses worldwide. It operates in five segments: News and Information Services, Book Publishing, Digital Real Estate Services, Subscription Video Services, and Other. The company distributes content and data products, including The Wall Street Journal, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, Barron's, MarketWatch, and DJX through various media channels, such as newspapers, newswires, Websites, mobile device applications, tablets and e-book readers, newsletters, magazines, proprietary databases, live journalism, video, and podcasts.

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