FOX (NASDAQ:FOX) Reaches New 1-Year Low - Here's Why

Key Points

• FOX shares hit a new 52-week low, falling to as low as $48.31 in Tuesday trading and closing well below its prior $58.92 level. The stock was also one of the day’s weakest large-cap names, reflecting investor concern.
• The biggest driver appears to be Fox’s $22 billion plan to acquire Roku, which investors worry may be too expensive and could pressure the company’s balance sheet and near-term returns. The deal is also being watched closely for its potential to expand Fox’s streaming and advertising reach.
• Despite the selloff, analysts remain mixed-to-bullish overall, with FOX recently beating quarterly earnings and revenue estimates and Wall Street maintaining a “Moderate Buy” consensus with a $75 average price target. Still, some firms, including Bank of America, have an underperform view and a much lower target.

Shares of Fox Corporation (NASDAQ:FOX - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $48.31 and last traded at $49.96, with a volume of 6960495 shares trading hands. The stock had previously closed at $58.92.

Key Headlines Impacting FOX

Here are the key news stories impacting FOX this week:

• Positive Sentiment: The Roku deal could expand Fox’s streaming reach, ad inventory, and connected-TV presence, potentially making it a much bigger player in digital media and boosting long-term monetization. Fox to buy streaming device maker Roku for $22 billion
• Positive Sentiment: Management said the combination could create the “third-largest player” in U.S. television viewership, which may strengthen Fox’s position in the streaming wars and improve its negotiating power with advertisers. Fox Corporation announces $22B acquisition of Roku in landmark streaming and live TV deal
• Neutral Sentiment: Fox shareholders are expected to own about 73% of the combined company, but legal firms have already started investigating whether the merger terms are fair, adding uncertainty around the deal process. FOX Stock Alert: Halper Sadeh LLC is Investigating Whether Fox Corporation is Obtaining a Fair Price for its Shareholders
• Negative Sentiment: The market is worried the $22 billion price tag is too rich and may strain Fox’s balance sheet or pressure near-term returns, which is likely contributing to the stock’s decline. Roku Stock Rises. Why $22 Billion Fox Sale May Disappoint.
• Negative Sentiment: Separately, reports noted that FOX had become one of the day’s weakest large-cap stocks, reflecting investor skepticism about the acquisition strategy and its impact on shareholder value. Fox to Buy Roku in $22 Billion Deal for Streaming Device and Technology Company

Analyst Ratings Changes

FOX has been the topic of a number of recent analyst reports. Weiss Ratings restated a "buy (b-)" rating on shares of FOX in a report on Friday, May 22nd. Zacks Research upgraded shares of FOX from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. Finally, Bank of America reiterated an "underperform" rating and issued a $45.00 price objective (down from $80.00) on shares of FOX in a research note on Wednesday, February 25th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, FOX currently has an average rating of "Moderate Buy" and a consensus price target of $75.00.

FOX Trading Down 15.2%

The company has a debt-to-equity ratio of 0.60, a quick ratio of 2.65 and a current ratio of 2.90. The stock has a market cap of $20.99 billion, a price-to-earnings ratio of 13.18, a price-to-earnings-growth ratio of 6.95 and a beta of 0.54. The company's 50 day simple moving average is $57.52 and its two-hundred day simple moving average is $58.51.

FOX (NASDAQ:FOX - Get Free Report) last posted its earnings results on Monday, May 11th. The company reported $1.32 EPS for the quarter, topping the consensus estimate of $1.02 by $0.30. The company had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.78 billion. FOX had a net margin of 10.56% and a return on equity of 18.90%. Research analysts expect that Fox Corporation will post 4.76 EPS for the current fiscal year.

Institutional Trading of FOX

Several large investors have recently added to or reduced their stakes in FOX. Marshall Wace LLP grew its position in FOX by 792.4% in the third quarter. Marshall Wace LLP now owns 3,184,642 shares of the company's stock worth $182,448,000 after acquiring an additional 2,827,768 shares in the last quarter. SG Americas Securities LLC grew its position in FOX by 2,459.6% in the fourth quarter. SG Americas Securities LLC now owns 413,037 shares of the company's stock worth $26,818,000 after acquiring an additional 396,900 shares in the last quarter. Pinebridge Investments LLC bought a new stake in FOX in the fourth quarter worth approximately $13,758,000. BI Asset Management Fondsmaeglerselskab A S bought a new stake in FOX in the first quarter worth approximately $9,328,000. Finally, Gabelli Funds LLC grew its position in FOX by 26.4% in the third quarter. Gabelli Funds LLC now owns 538,400 shares of the company's stock worth $30,845,000 after acquiring an additional 112,600 shares in the last quarter. 26.41% of the stock is owned by institutional investors.

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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