FOX (NASDAQ:FOX) Rating Increased to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded FOX from hold to strong-buy, adding to a mixed but overall constructive analyst backdrop for the stock.
• FOX’s latest quarterly results beat expectations, with EPS of $1.32 versus the $1.02 estimate and revenue of $3.99 billion topping forecasts, which helped lift sentiment.
• There has been notable insider selling, including large share sales by COO John Nallen and CEO Lachlan Murdoch, while institutional investors have also been active in building positions.

FOX (NASDAQ:FOX - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the stock. Wells Fargo & Company cut shares of FOX from a "strong-buy" rating to a "hold" rating in a report on Thursday, February 5th. Bank of America reaffirmed an "underperform" rating and issued a $45.00 target price (down from $80.00) on shares of FOX in a report on Wednesday, February 25th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, FOX currently has an average rating of "Moderate Buy" and a consensus price target of $75.00.

FOX Price Performance

Shares of FOX opened at $59.47 on Tuesday. FOX has a 1-year low of $48.42 and a 1-year high of $68.18. The stock has a market cap of $25.30 billion, a PE ratio of 15.69, a price-to-earnings-growth ratio of 6.89 and a beta of 0.54. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.90 and a quick ratio of 2.44. The firm has a fifty day moving average price of $54.94 and a 200 day moving average price of $58.43.

FOX (NASDAQ:FOX - Get Free Report) last announced its earnings results on Monday, May 11th. The company reported $1.32 EPS for the quarter, beating analysts' consensus estimates of $1.02 by $0.30. FOX had a net margin of 10.56% and a return on equity of 18.90%. The business had revenue of $3.99 billion during the quarter, compared to analysts' expectations of $3.78 billion. As a group, sell-side analysts anticipate that FOX will post 4.85 EPS for the current year.

Insider Activity

In related news, COO John Nallen sold 242,309 shares of the stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $57.74, for a total transaction of $13,990,921.66. Following the completion of the transaction, the chief operating officer directly owned 357,653 shares of the company's stock, valued at $20,650,884.22. This represents a 40.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Lachlan K. Murdoch sold 637,752 shares of the stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $58.20, for a total transaction of $37,117,166.40. Following the transaction, the chief executive officer directly owned 152 shares of the company's stock, valued at $8,846.40. This represents a 99.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,586,871 shares of company stock valued at $91,893,926 over the last three months. 23.06% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Gabelli Funds LLC raised its holdings in FOX by 26.4% during the third quarter. Gabelli Funds LLC now owns 538,400 shares of the company's stock worth $30,845,000 after purchasing an additional 112,600 shares in the last quarter. SG Americas Securities LLC raised its holdings in FOX by 2,459.6% during the fourth quarter. SG Americas Securities LLC now owns 413,037 shares of the company's stock worth $26,818,000 after purchasing an additional 396,900 shares in the last quarter. Canada Post Corp Registered Pension Plan raised its holdings in FOX by 786.4% during the third quarter. Canada Post Corp Registered Pension Plan now owns 23,720 shares of the company's stock worth $1,352,000 after purchasing an additional 21,044 shares in the last quarter. Andra AP fonden raised its holdings in FOX by 2.7% during the third quarter. Andra AP fonden now owns 1,110,900 shares of the company's stock worth $63,643,000 after purchasing an additional 29,200 shares in the last quarter. Finally, GABELLI & Co INVESTMENT ADVISERS INC. raised its holdings in FOX by 4.8% during the third quarter. GABELLI & Co INVESTMENT ADVISERS INC. now owns 257,911 shares of the company's stock worth $14,776,000 after purchasing an additional 11,900 shares in the last quarter. 26.41% of the stock is owned by hedge funds and other institutional investors.

FOX News Summary

Here are the key news stories impacting FOX this week:

• Positive Sentiment: Fox’s fiscal Q3 results came in above expectations, with revenue of $3.99 billion and adjusted net income of $570 million, supporting the view that the company’s advertising and media businesses remain resilient. Fox Analysts Raise Their Forecasts After Upbeat Q3 Earnings
• Positive Sentiment: Analysts raised forecasts after the earnings beat, which can help sentiment by signaling stronger expectations for future performance and potentially supporting a higher valuation. Fox Analysts Raise Their Forecasts After Upbeat Q3 Earnings
• Neutral Sentiment: Fox Corporation presented at MoffettNathanson’s Media, Internet & Communications Conference, which may have kept investors focused on management’s outlook and strategy, but did not appear to be a major standalone catalyst. Fox Corporation (FOXA) Presents at MoffettNathanson's Media, Internet & Communications Conference Transcript
• Neutral Sentiment: Most of the other headlines were Fox News editorial or video content on politics, immigration, AI, and current events. These items may drive audience engagement, but they are not direct financial catalysts for FOX shares. It never ends: GOP moves to fund border, Democrats blast Trump spending

FOX Company Profile

Fox Corporation NASDAQ: FOX is a U.S.-based media company that operates television broadcast, news and sports businesses. The company traces its contemporary structure to the 2019 reorganization that followed the sale of certain entertainment assets to The Walt Disney Company; Fox Corporation retained a portfolio centered on the Fox Broadcasting Company, Fox Television Stations, Fox News Media and Fox Sports. Over time the company has expanded its digital footprint through acquisitions and direct-to-consumer services, building a mix of linear and streaming distribution.

FOX's core activities include the creation, aggregation and distribution of television programming and live sports, the operation of national cable news and business networks, and the ownership and operation of local broadcast stations.

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