FOX's (FOXA) Buy Rating Reiterated at Guggenheim

Key Points

• Guggenheim reiterated its “Buy” rating on FOX and set an $85 price target, implying approximately 32.3% upside from the stock’s $64.25 opening price.
• FOX reported strong quarterly results, with EPS of $1.79 versus the $1.44 consensus and revenue of $4.21 billion, up 28.1% year over year.
• Analyst sentiment remains mixed: FOX has a consensus “Hold” rating and an average price target of $76.35, while CEO Lachlan Murdoch purchased nearly $10.3 million of company shares.

FOX (NASDAQ:FOXA - Get Free Report)'s stock had its "buy" rating restated by research analysts at Guggenheim in a note issued to investors on Wednesday, Benzinga reports. They presently have a $85.00 price objective on the stock. Guggenheim's price objective indicates a potential upside of 32.30% from the stock's current price.

Several other equities analysts have also recently commented on the stock. JPMorgan Chase & Co. upgraded shares of FOX from a "neutral" rating to an "overweight" rating and upped their target price for the company from $70.00 to $82.00 in a research note on Friday, August 14th. Citizens Jmp started coverage on shares of FOX in a report on Monday, September 14th. They set a "market outperform" rating and a $95.00 price objective on the stock. Barclays decreased their target price on FOX from $67.00 to $60.00 and set an "equal weight" rating on the stock in a research report on Monday, June 15th. UBS Group restated a "neutral" rating on shares of FOX in a research note on Monday, June 15th. Finally, Weiss Ratings cut FOX from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, August 12th. Ten research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, FOX presently has a consensus rating of "Hold" and an average price target of $76.35.

FOX Stock Performance

FOXA opened at $64.25 on Wednesday. The firm has a market capitalization of $26.96 billion, a P/E ratio of 16.78, a price-to-earnings-growth ratio of 1.15 and a beta of 0.55. The stock's 50 day moving average price is $63.52 and its two-hundred day moving average price is $61.36. The company has a quick ratio of 2.99, a current ratio of 3.17 and a debt-to-equity ratio of 0.56. FOX has a 12-month low of $48.34 and a 12-month high of $76.39.

FOX (NASDAQ:FOXA - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $1.79 EPS for the quarter, topping analysts' consensus estimates of $1.44 by $0.35. FOX had a return on equity of 20.64% and a net margin of 9.84%.The company had revenue of $4.21 billion during the quarter, compared to analyst estimates of $3.64 billion. During the same period in the previous year, the company earned $1.27 earnings per share. The company's quarterly revenue was up 28.1% compared to the same quarter last year. On average, equities analysts forecast that FOX will post 5.94 earnings per share for the current year.

Insider Buying and Selling at FOX

In other FOX news, CEO Lachlan Murdoch bought 149,934 shares of the firm's stock in a transaction dated Tuesday, September 15th. The shares were acquired at an average cost of $68.53 per share, for a total transaction of $10,274,977.02. Following the transaction, the chief executive officer owned 1,401,713 shares in the company, valued at approximately $96,059,391.89. The trade was a 11.98% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Company insiders own 20.89% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FOXA. Livforsakringsbolaget Skandia Omsesidigt boosted its stake in FOX by 9.9% in the 1st quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 287,000 shares of the company's stock valued at $16,755,000 after buying an additional 25,900 shares in the last quarter. Geode Capital Management LLC raised its stake in FOX by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 6,534,627 shares of the company's stock worth $476,248,000 after acquiring an additional 29,923 shares in the last quarter. Engineers Gate Manager LP acquired a new position in FOX during the second quarter worth $1,558,000. Andra AP fonden lifted its holdings in shares of FOX by 208.1% during the first quarter. Andra AP fonden now owns 247,000 shares of the company's stock valued at $14,425,000 after acquiring an additional 166,822 shares during the period. Finally, Allianz Asset Management GmbH boosted its stake in shares of FOX by 2.6% in the 2nd quarter. Allianz Asset Management GmbH now owns 966,811 shares of the company's stock valued at $50,429,000 after purchasing an additional 24,511 shares in the last quarter. Institutional investors own 52.52% of the company's stock.

FOX Company Profile

Fox Corporation NASDAQ: FOXA is a media and entertainment company formed in 2019 following the separation of certain assets from 21st Century Fox. The company operates a portfolio of news, sports and entertainment brands focused primarily on the United States, with select services and programming available internationally.

Fox's businesses include FOX News Media, which operates FOX News Channel, FOX Business Network, FOX News Digital and related subscription and streaming services. Its sports operations include FOX Sports, FS1, FS2, FOX Deportes, the Big Ten Network and sports programming distributed through digital platforms.

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