FOX (NASDAQ:FOXA) Sets New 52-Week Low - Here's Why

Key Points

• FOX shares hit a new 52-week low during Wednesday trading, falling to as low as $51.38 and later trading around $52.34 after closing at $54.76 the previous day.
• The stock has been pressured by Fox’s $22 billion Roku deal, which investors worry could be dilutive and increase debt, while also facing legal scrutiny over whether shareholders are getting a fair price.
• Despite the weakness, some analysts see potential upside from Fox’s streaming strategy and note the stock may be oversold; however, Wall Street’s consensus remains Hold with an average price target of $74.36.

Fox Corporation (NASDAQ:FOXA - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $51.38 and last traded at $52.34, with a volume of 23220333 shares trading hands. The stock had previously closed at $54.76.

Key Stories Impacting FOX

Here are the key news stories impacting FOX this week:

• Positive Sentiment: The Roku deal could strengthen Fox’s streaming strategy by combining Tubi, The Roku Channel, and Fox’s sports/news content, potentially boosting ad scale and viewer reach. Article Title
• Positive Sentiment: Analysts also note Fox may be oversold after recent weakness, with some arguing the stock could be due for a turnaround if investor sentiment stabilizes. Article Title
• Neutral Sentiment: Wall Street’s broader reaction to the deal has focused on the strategic shift into streaming and the possibility that Fox becomes a bigger force in connected TV, but the long-term benefits are still uncertain. Article Title
• Negative Sentiment: Investors are concerned that the acquisition is highly dilutive and increases Fox’s debt load, which could pressure returns and financial flexibility. Article Title
• Negative Sentiment: Law firms have already launched investigations into whether the Roku transaction gives Fox shareholders a fair price, adding legal overhang to the stock. Article Title

Analyst Ratings Changes

FOXA has been the topic of a number of research analyst reports. Argus upgraded shares of FOX to a "hold" rating in a research note on Thursday, February 19th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $79.00 price objective on shares of FOX in a research note on Tuesday, May 12th. JPMorgan Chase & Co. raised their target price on shares of FOX from $69.00 to $70.00 and gave the company a "neutral" rating in a research report on Tuesday, May 12th. Evercore set a $73.00 target price on shares of FOX in a research note on Tuesday, May 12th. Finally, Barclays lowered their price target on shares of FOX from $67.00 to $60.00 and set an "equal weight" rating for the company in a report on Monday. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, FOX has a consensus rating of "Hold" and an average price target of $74.36.

FOX Trading Down 4.4%

The company has a current ratio of 2.90, a quick ratio of 2.65 and a debt-to-equity ratio of 0.60. The firm has a market capitalization of $21.99 billion, a price-to-earnings ratio of 13.81, a P/E/G ratio of 2.84 and a beta of 0.51. The firm's 50-day moving average is $63.99 and its 200 day moving average is $65.03.

FOX (NASDAQ:FOXA - Get Free Report) last announced its quarterly earnings results on Monday, May 11th. The company reported $1.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.30. The firm had revenue of $3.99 billion during the quarter, compared to analysts' expectations of $3.78 billion. FOX had a net margin of 10.56% and a return on equity of 18.90%. The company's revenue was down 8.6% on a year-over-year basis. During the same period in the prior year, the company posted $1.10 EPS. On average, equities analysts predict that Fox Corporation will post 4.93 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. PFA Pension Forsikringsaktieselskab purchased a new stake in shares of FOX during the 4th quarter valued at about $67,467,000. Ameriprise Financial Inc. boosted its holdings in shares of FOX by 72.0% in the second quarter. Ameriprise Financial Inc. now owns 1,821,284 shares of the company's stock worth $101,948,000 after buying an additional 762,645 shares during the last quarter. SG Americas Securities LLC grew its position in FOX by 299.8% during the first quarter. SG Americas Securities LLC now owns 511,811 shares of the company's stock valued at $29,890,000 after buying an additional 383,782 shares during the period. Lazard Asset Management LLC grew its position in FOX by 624.5% during the second quarter. Lazard Asset Management LLC now owns 281,126 shares of the company's stock valued at $15,753,000 after buying an additional 242,321 shares during the period. Finally, BI Asset Management Fondsmaeglerselskab A S increased its holdings in FOX by 150.9% during the fourth quarter. BI Asset Management Fondsmaeglerselskab A S now owns 377,731 shares of the company's stock valued at $27,601,000 after buying an additional 227,209 shares during the last quarter. 52.52% of the stock is owned by institutional investors and hedge funds.

About FOX

Fox Corporation NASDAQ: FOXA is a U.S.-based media company focused on television broadcasting, cable news and sports programming, and digital distribution. The company was formed in 2019 as the successor to certain assets of 21st Century Fox after a transaction that transferred many film and television studio assets to The Walt Disney Company. Fox Corp's operations center on the Fox Broadcasting network, a portfolio of local television stations, national news and business cable networks, and sports media properties.

Fox produces, acquires and distributes a range of live and recorded programming, including news, opinion and commentary, national and local sports telecasts, and general entertainment.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.