FOX (NASDAQ:FOXA) Shares Gap Down - Here's What Happened

Key Points

• FOX Corporation (NASDAQ:FOXA) shares opened at $59.65, down from a previous close of $62.48, with a trading volume of over 2.2 million shares.
• The company saw a significant increase in its quarterly earnings, posting $1.27 earnings per share, which beat estimates by $0.26 and represented a year-over-year revenue growth of 6.3%.
• FOX announced a dividend increase, with a new rate of $0.28 per share set to be paid on September 24th, which marks a rise from the previous $0.18 dividend.

Fox Corporation (NASDAQ:FOXA - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $62.48, but opened at $59.65. FOX shares last traded at $58.74, with a volume of 2,214,884 shares traded.

Analyst Ratings Changes

A number of analysts have commented on FOXA shares. Cfra Research raised shares of FOX from a "hold" rating to a "moderate buy" rating in a report on Tuesday, August 5th. Wells Fargo & Company lifted their target price on shares of FOX from $66.00 to $70.00 and gave the stock an "overweight" rating in a report on Monday, September 8th. Morgan Stanley set a $65.00 price target on shares of FOX in a report on Tuesday, September 9th. UBS Group set a $65.00 price target on shares of FOX and gave the company a "buy" rating in a report on Wednesday, June 25th. Finally, Wall Street Zen lowered shares of FOX from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Nine 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. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $56.47.

FOX Stock Performance

The company has a debt-to-equity ratio of 0.55, a quick ratio of 2.76 and a current ratio of 2.91. The stock's fifty day moving average price is $57.36 and its 200-day moving average price is $54.65. The company has a market capitalization of $25.95 billion, a P/E ratio of 11.86, a PEG ratio of 1.41 and a beta of 0.52.

FOX (NASDAQ:FOXA - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $1.27 EPS for the quarter, beating analysts' consensus estimates of $1.01 by $0.26. The business had revenue of $3.29 billion for the quarter, compared to analyst estimates of $3.12 billion. FOX had a net margin of 13.88% and a return on equity of 18.86%. FOX's quarterly revenue was up 6.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.90 EPS. As a group, research analysts anticipate that Fox Corporation will post 4.38 EPS for the current fiscal year.

FOX Increases Dividend

The business also recently announced a dividend, which will be paid on Wednesday, September 24th. Shareholders of record on Wednesday, September 3rd will be paid a dividend of $0.28 per share. The ex-dividend date of this dividend is Wednesday, September 3rd. This is a boost from FOX's previous dividend of $0.18. This represents a dividend yield of 93.0%. FOX's payout ratio is presently 11.41%.

Institutional Trading of FOX

A number of hedge funds and other institutional investors have recently modified their holdings of FOXA. Assetmark Inc. grew its stake in shares of FOX by 752.1% during the first quarter. Assetmark Inc. now owns 1,951,657 shares of the company's stock worth $110,464,000 after buying an additional 1,722,616 shares during the last quarter. Federated Hermes Inc. raised its stake in shares of FOX by 164,675.7% during the first quarter. Federated Hermes Inc. now owns 1,255,591 shares of the company's stock valued at $71,066,000 after acquiring an additional 1,254,829 shares during the last quarter. Nuveen LLC bought a new position in shares of FOX during the first quarter valued at $63,125,000. Junto Capital Management LP bought a new position in shares of FOX during the first quarter valued at $53,681,000. Finally, Ameriprise Financial Inc. raised its stake in shares of FOX by 537.0% during the first quarter. Ameriprise Financial Inc. now owns 1,058,639 shares of the company's stock valued at $59,909,000 after acquiring an additional 892,437 shares during the last quarter. Institutional investors own 52.52% of the company's stock.

About FOX

Fox Corporation operates as a news, sports, and entertainment company in the United States (U.S.). The company operates through four segments: Cable Network Programming, Television, Credible, and The FOX Studio Lot. The Cable Network Programming segment produces and licenses news and sports content for distribution through traditional cable television systems, direct broadcast satellite operators and telecommunication companies, virtual multi-channel video programming distributors, and other digital platforms primarily in the U.S.