News (NASDAQ:NWS) Shares Gap Down - Should You Sell?

Key Points

• News Corporation's shares gapped down before trading on Tuesday, opening at $32.75, down from a previous close of $33.97.
• Zacks Research has downgraded News shares to a "strong sell" rating, while the overall consensus rating remains at "Buy."
• The company announced a semi-annual dividend of $0.10 per share, with a yield of 60.0% payable on October 8th to shareholders of record on September 10th.

News Corporation (NASDAQ:NWS - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $33.97, but opened at $32.75. News shares last traded at $32.89, with a volume of 2,840,384 shares trading hands.

Analyst Upgrades and Downgrades

Separately, Zacks Research raised News to a "strong sell" rating in a research note on Tuesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy".

News Price Performance

The company has a market capitalization of $18.23 billion, a PE ratio of 15.51 and a beta of 1.18. The company has a current ratio of 1.84, a quick ratio of 1.72 and a debt-to-equity ratio of 0.21. The stock has a fifty day simple moving average of $33.76 and a 200-day simple moving average of $32.34.

News (NASDAQ:NWS - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $0.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.18 by $0.01. News had a return on equity of 5.66% and a net margin of 13.21%.The company had revenue of $2.11 billion during the quarter, compared to the consensus estimate of $2.09 billion. Equities analysts anticipate that News Corporation will post 1.03 earnings per share for the current year.

News Dividend Announcement

The company also recently announced a semi-annual dividend, which will be paid on Wednesday, October 8th. Stockholders of record on Wednesday, September 10th will be issued a $0.10 dividend. This represents a dividend yield of 63.0%. The ex-dividend date of this dividend is Wednesday, September 10th. News's payout ratio is presently 9.62%.

Hedge Funds Weigh In On News

Institutional investors have recently added to or reduced their stakes in the stock. SVB Wealth LLC acquired a new position in News during the 1st quarter worth approximately $27,000. NorthRock Partners LLC purchased a new stake in shares of News during the 2nd quarter worth approximately $27,000. First Horizon Advisors Inc. boosted its stake in shares of News by 3,546.2% during the 1st quarter. First Horizon Advisors Inc. now owns 948 shares of the company's stock worth $29,000 after acquiring an additional 922 shares in the last quarter. Resona Asset Management Co. Ltd. boosted its stake in shares of News by 75.3% during the 1st quarter. Resona Asset Management Co. Ltd. now owns 964 shares of the company's stock worth $29,000 after acquiring an additional 414 shares in the last quarter. Finally, NewEdge Advisors LLC purchased a new stake in shares of News during the 2nd quarter worth approximately $30,000. Institutional investors and hedge funds own 14.63% of the company's stock.

News Company Profile

News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide. It operates through six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other.