Traders Purchase High Volume of FOX Call Options (NASDAQ:FOXA)

Key Points

• FOX call-option activity surged: Investors bought 6,021 call options, 118% above the average volume of 2,759 contracts, suggesting bullish positioning but potentially higher short-term volatility.
• Analyst sentiment remains positive: FOX has an overall “Moderate Buy” rating and an average price target of $78.12, with recent upgrades citing expected benefits from its Roku acquisition and improving earnings outlook.
• Fundamentals showed strong growth: FOX beat quarterly EPS and revenue expectations, reporting $1.79 EPS and $4.21 billion in revenue, with revenue up 28.1% year over year. CEO Lachlan Murdoch also increased his stake by nearly 12% through a $10.3 million purchase.

Fox Corporation (NASDAQ:FOXA - Get Free Report) was the recipient of unusually large options trading on Friday. Stock investors purchased 6,021 call options on the company. This is an increase of 118% compared to the average volume of 2,759 call options.

Insider Transactions at FOX

In other FOX news, CEO Lachlan Murdoch purchased 149,934 shares of the stock in a transaction on Tuesday, September 15th. The stock was bought at an average price of $68.53 per share, for a total transaction of $10,274,977.02. Following the acquisition, the chief executive officer directly owned 1,401,713 shares of the company's stock, valued at $96,059,391.89. This represents a 11.98% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Insiders own 20.89% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. MassMutual Private Wealth & Trust FSB purchased a new stake in shares of FOX in the third quarter worth about $44,000. Elevation Wealth Partners LLC raised its holdings in shares of FOX by 811.0% during the 3rd quarter. Elevation Wealth Partners LLC now owns 911 shares of the company's stock valued at $57,000 after buying an additional 811 shares during the period. Wilkerson Advisory Group LLC lifted its position in FOX by 50.6% during the 1st quarter. Wilkerson Advisory Group LLC now owns 1,435 shares of the company's stock worth $84,000 after acquiring an additional 482 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in FOX by 20.9% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,451 shares of the company's stock worth $85,000 after acquiring an additional 251 shares in the last quarter. Finally, TD Waterhouse Canada Inc. boosted its holdings in FOX by 2,503.4% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 1,536 shares of the company's stock worth $80,000 after acquiring an additional 1,477 shares during the period. Institutional investors and hedge funds own 52.52% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on FOXA. Rothschild & Co Redburn set a $71.00 target price on shares of FOX and gave the stock a "buy" rating in a research report on Friday, July 10th. Weiss Ratings raised shares of FOX from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, September 29th. Seaport Research Partners lowered shares of FOX from a "buy" rating to a "neutral" rating in a report on Friday, August 7th. KeyCorp cut shares of FOX to a "sector weight" rating in a research note on Friday. Finally, Fox Advisors set a $85.00 price objective on FOX in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $78.12.

Key Stories Impacting FOX

Here are the key news stories impacting FOX this week:

• Positive Sentiment: Bank of America upgraded Fox from “Underperform” to “Buy” and raised its price target to $85 from $54. The firm estimates that the Roku deal could add approximately $700 million in annual earnings by 2028, materially improving Fox’s growth outlook. Fox upgraded to Buy at Bank of America as Roku deal boosts growth outlook
• Positive Sentiment: Fox’s acquisition of Roku gives it a direct connection to streaming viewers and could improve the distribution and monetization of programming, including Sunday NFL games. The deal may also help Fox compete more effectively in connected television and digital advertising. Why Fox Can Finally Breathe a Sigh of Relief With Roku Deal—and Why the NFL Can't
• Positive Sentiment: Options activity reflected bullish positioning: investors purchased 6,021 call options, about 118% above typical call volume of 2,759 contracts. Elevated call buying can signal expectations for further gains, although it may also increase short-term volatility.
• Positive Sentiment: Zacks upgraded Fox to a Rank #2, or “Buy,” citing improving earnings expectations. Another Zacks report said the stock could still be undervalued, supporting the broader bullish sentiment. All You Need to Know About Fox Rating Upgrade to Buy
• Neutral Sentiment: Fox has reportedly completed the Roku acquisition, but investors will continue to assess integration risks, deal costs and whether the expected earnings benefits are realized.
• Negative Sentiment: Recent technical coverage noted that FOXA crossed below its 200-day moving average, a potential warning sign for momentum-focused investors. Valuation analysis also suggested the stock may be near fair value based on cash flow, which could limit near-term upside.

FOX Trading Up 0.3%

NASDAQ FOXA traded up $0.22 during mid-day trading on Friday, hitting $64.20. The company's stock had a trading volume of 2,051,176 shares, compared to its average volume of 4,730,860. FOX has a 52-week low of $48.34 and a 52-week high of $76.39. The stock's fifty day simple moving average is $65.26 and its two-hundred day simple moving average is $61.91. The company has a debt-to-equity ratio of 0.56, a current ratio of 3.17 and a quick ratio of 2.99. The firm has a market capitalization of $26.94 billion, a P/E ratio of 16.77, a price-to-earnings-growth ratio of 1.11 and a beta of 0.60.

FOX (NASDAQ:FOXA - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $1.79 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.44 by $0.35. FOX had a net margin of 9.84% and a return on equity of 20.64%. The company had revenue of $4.21 billion during the quarter, compared to the consensus estimate of $3.64 billion. During the same period in the previous year, the firm earned $1.27 earnings per share. FOX's revenue for the quarter was up 28.1% on a year-over-year basis. Research analysts expect that FOX will post 5.94 EPS for the current year.

FOX Announces Dividend

The firm also recently declared a dividend, which was paid on Wednesday, September 23rd. Investors of record on Wednesday, September 2nd were given a dividend of $0.29 per share. This represents a yield of 86.0%. The ex-dividend date of this dividend was Wednesday, September 2nd. FOX's dividend payout ratio is 15.14%.

About FOX

Fox Corporation NASDAQ: FOXA is a U.S. media company that produces and distributes news, sports, and entertainment programming. Its portfolio includes FOX News Media, FOX Sports, FOX Entertainment, FOX Television Stations, and Tubi, an ad-supported streaming service offering movies, television programs, and other digital content.

FOX News Media operates FOX News Channel, FOX Business Network, FOX News Digital, and related audio and digital platforms. FOX Sports provides national and regional sports programming, while FOX Entertainment develops and broadcasts scripted and unscripted programming through the FOX broadcast network and other platforms.

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