In a surprising move, Los Angeles Capital Management LLC has significantly reduced its holdings in Fox Co. (NASDAQ:FOXA). According to the company’s recent 13F filing with the Securities and Exchange Commission (SEC), Los Angeles Capital Management LLC decreased its position in Fox Co. by a staggering 50.2% during the first quarter of this year. The fund now owns only 144,057 shares of the company’s stock, after selling off 145,020 shares.
This development has caught many investors off guard, as Fox Co. has been a prominent player in the news, sports, and entertainment industry in the United States (U.S.). With its various segments – Cable Network Programming; Television; and Other, Corporate and Eliminations – Fox Corporation has established itself as a key contender in the market.
According to reports released on August 2, 2023, Fox Co.’s recent financial performance appears promising. In their quarterly earnings data for May 9th, the company reported an impressive $0.94 earnings per share (EPS) for the quarter. This exceeded analysts’ consensus estimates by $0.06 per share. Additionally, Fox Co.’s revenue for the period reached $4.08 billion, surpassing expectations of $4.03 billion.
It is worth noting that Fox Co.’s net margin stands at an impressive 7.84%, showcasing its ability to generate profits efficiently. Furthermore, the company boasts a respectable return on equity of 16.36%. These financial indicators demonstrate Fox Co.’s robustness and solid footing within its industry.
Despite these positive figures, Los Angeles Capital Management LLC seems to have taken a different approach by reducing its stake in Fox Co.. This decision may arise from various factors including changing market dynamics or portfolio realignment strategies employed by Los Angeles Capital Management LLC.
Looking ahead to the current fiscal year’s forecasted earnings per share (EPS), analysts predict that Fox Co. will post 3.36, reflecting the company’s anticipated growth and continued success. As Fox Corporation continues to operate as a news, sports, and entertainment entity in the U.S., it is intriguing to examine how this major change in investment strategy by Los Angeles Capital Management LLC will influence its trajectory.
Fox Corporation’s Cable Network Programming segment remains a crucial revenue generator for the company. It produces and licenses news, business news, and sports content for distribution through traditional and virtual multi-channel video programming distributors (MVPDs) and other digital platforms across the U.S.
While the reasons behind Los Angeles Capital Management LLC’s decision remain undisclosed at this time, it adds an element of perplexity to an already bustling industry. Investors are eagerly observing whether this reduction in holdings will have any subsequent repercussions on Fox Co.’s performance or if it signals broader changes within the sector.
As of now, all eyes are on Fox Co. as it navigates through this transitional phase while sustaining its operations as a prominent player in the news, sports, and entertainment landscape of the United States.
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Shifting Investment Landscape: Hedge Funds, Institutions, and Insiders React to Fox Corporation’s Potential for Growth
August 2, 2023
Fox Corporation’s Investment Landscape Continues to Shift
Throughout recent months, various hedge funds and institutional investors have made notable changes to their investment holdings in Fox Corporation (FOXA), highlighting the evolving landscape of the media conglomerate. Daiwa Securities Group Inc. increased its stake in FOXA by 3.9% during the fourth quarter, demonstrating a positive sentiment towards the company’s potential for growth. Meanwhile, Keybank National Association OH raised its holdings by 6.2%, indicating a similar belief in FOXA’s prospects.
Financial Counselors Inc. also took a bullish stance on FOXA, raising its holdings by 5.8% during the first quarter of this year, suggesting confidence in the company’s ability to generate returns. Similarly, Daymark Wealth Partners LLC entered the scene by acquiring a new position in FOXA during the fourth quarter of last year, underscoring their belief in its long-term value.
One notable institution that significantly increased its holdings is the State of New Jersey Common Pension Fund D, which raised its stake by an impressive 19.6% during the first quarter of this year. With an additional ownership of over 27,000 shares, this move suggests that State of New Jersey Common Pension Fund D sees substantial potential for growth within FOXA.
While institutional investors continue to buy into FOXA, it is important to note that they collectively account for 57.81% of the company’s stock ownership. These large-scale investments indicate confidence from sophisticated market participants who expect future positive performance from FOX Corporation.
In terms of financial figures, FOXA began trading at $33.26 on Wednesday morning., The company has shown stability with a debt-to-equity ratio of 0.58 as well as healthy current and quick ratios at 1.75 and 1.64 respectively.
With a market capitalization standing at $16.78 billion, a price-to-earnings ratio of 15.62, and a beta of 0.86, FOXA’s financial profile indicates a stable foundation for investors to consider. Furthermore, the fifty-day moving average price is $33.19, and the two-hundred-day moving average price is $33.43, demonstrating consistency within the company’s stock performance.
FOXA operates as a news, sports, and entertainment company in the United States market and is categorized into three segments: Cable Network Programming; Television; and Other, Corporate and Eliminations. The Cable Network Programming division specifically produces news, business news, and sports content for distribution through traditional and virtual multi-channel video programming distributors (MVPDs) within the U.S.
Analysts have recently voiced their opinions on FOXA shares as well. Morgan Stanley lowered their price objective on FOXA shares from $39.00 to $37.00 in May 2023.
Barclays also reduced their price objective from $36.00 to $35.00 in April 2023 while maintaining an “equal weight” rating for the stock.
StockNews.com initiated coverage on FOXA in May 2023 with a “hold” rating based on their analysis of the company’s prospects. Wells Fargo & Company downgraded FOXA from an “equal weight” rating to an “underweight” rating in July 2023 while lowering their price target from $35.00 to $31.00.
Lastly, Argus shifted its view on FOXA shares from a “buy” rating to a “hold” rating earlier in April this year.
In light of these ratings updates by various research firms, it is important to mention that according to Bloomberg.com’s latest data analysis, the consensus view on FOXA currently stands at “Hold,” with an average target price of approximately $36.40 among analysts.
Apart from changes in investment holdings and ratings updates, recent insider activity has also stirred attention within the industry. Keith Rupert Murdoch, an influential figure and insider within FOX Corporation, sold 100,000 shares of FOXA stock on June 16th at an average price of $33.62. Following this transaction, Murdoch now owns 157,513 shares valued at approximately $5,295,587.06.
It is notable that insiders currently hold a significant portion of Fox Corporation’s stock with a stake of 19.86%, further emphasizing their belief in the company’s potential for growth.
In light of the various investment moves made by hedge funds and institutional investors, along with noteworthy insider transactions and analyst ratings updates, it is clear that there is significant activity surrounding Fox Corporation (FOXA) within the financial markets.
Disclaimer: The information provided in this article should not be taken as financial advice or as a recommendation to buy or sell any stock. Please conduct thorough research and consult with a professional financial advisor before making any investment decisions.
