FOX (NASDAQ:FOXA) Shares Gap Down – Should You Sell?

Fox Corporation (NASDAQ:FOXA)’s stock price gapped down before the market opened on Monday . The stock had previously closed at $65.85, but opened at $56.98. FOX shares last traded at $53.9360, with a volume of 5,210,751 shares trading hands.

More FOX News

Here are the key news stories impacting FOX this week:

• Positive Sentiment: The Roku deal could expand Fox’s connected-TV reach, ad inventory, and streaming scale, potentially making Fox a more powerful long-term player in digital media.
• Positive Sentiment: Some analysts and market commentary describe Fox as oversold and a possible value-style turnaround candidate after its recent decline.
• Neutral Sentiment: Fox is drawing more attention as a stock to watch in entertainment and consumer discretionary lists, but these mentions do not materially change the investment thesis.
• Negative Sentiment: Investors are worried about the size of the $22 billion purchase, the added debt load, and dilution from the cash-and-stock structure.
• Negative Sentiment: The market appears unconvinced that Fox should pay such a large premium for Roku, and class-action/investigation headlines add legal and deal-completion risk.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. Argus raised FOX to a “hold” rating in a report on Thursday, February 19th. Evercore set a $73.00 price objective on FOX in a report on Tuesday, May 12th. Weiss Ratings restated a “buy (b-)” rating on shares of FOX in a research report on Friday, May 22nd. UBS Group reaffirmed a “neutral” rating on shares of FOX in a research note on Monday. Finally, JPMorgan Chase & Co. lifted 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. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $74.36.

FOX Price Performance

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 capitalization of $21.99 billion, a P/E ratio of 13.81, a price-to-earnings-growth ratio of 2.84 and a beta of 0.51. The firm has a 50-day moving average price of $63.99 and a 200 day moving average price of $65.03.

FOX (NASDAQ:FOXA) last issued its earnings results on Monday, May 11th. The company reported $1.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.30. FOX had a return on equity of 18.90% and a net margin of 10.56%.The business had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.78 billion. During the same quarter in the prior year, the firm earned $1.10 earnings per share. FOX’s revenue for the quarter was down 8.6% on a year-over-year basis. On average, analysts expect that Fox Corporation will post 4.93 EPS for the current year.

Institutional Trading of FOX

Several hedge funds have recently added to or reduced their stakes in the business. FWL Investment Management LLC purchased a new position in shares of FOX in the third quarter worth about $26,000. Elyxium Wealth LLC purchased a new position in FOX in the 4th quarter worth approximately $27,000. CYBER HORNET ETFs LLC bought a new stake in FOX in the second quarter valued at approximately $35,000. Rosenberg Matthew Hamilton boosted its stake in shares of FOX by 58.5% during the fourth quarter. Rosenberg Matthew Hamilton now owns 696 shares of the company’s stock valued at $51,000 after purchasing an additional 257 shares during the period. Finally, Quantbot Technologies LP purchased a new stake in shares of FOX during the third quarter valued at approximately $51,000. 52.52% of the stock is owned by institutional investors.

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.