Taking a Fresh Look at News Corporation (NWSA)

News Corporation (NWSA) is an interesting player in the Services space, with a focus on Broadcasting – TV. The stock has been active on the tape, currently trading at $13.63, down from yesterday’s close by -0.87%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

No amount of research is complete without a bird’s eye view of the financial data. News Corporation (NWSA) currently trades with a market capitalization of $7.94 Billion.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For NWSA, the company currently has $2.02 Billion of cash on the books, which is offset by $103 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $238 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0 on a per share basis this quarter. Perhaps, that suggests something about why 61.55% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, News Corporation recorded a 52-week high of $14.48. It is now trading 0.85% off that level. The stock is trading $13.34 its 50-day moving average by -0.29%. The stock carved out a 52-week low down at $10.99.

In recent action, News Corporation (NWSA) has made a move of +3.97% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.89, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.34% with $501.63 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of NWSA.

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