News (NASDAQ:NWSA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.

According to Zacks, “News Corporation is in a transitionary phase looking to diversify its revenue streams through strategic acquisitions and operational enhancement. The company is expanding its digital offerings, along with greater emphasis on real estate businesses and augmenting digital subscriber base. Further, it has been concentrating on cost cutting. These endeavors have helped the stock to outpace the industry so far in the year and facilitated to post fourth straight quarter of positive earnings surprise in the first quarter of fiscal 2018. Top line also came ahead of the consensus mark and grew year over year. The quarter marked robust performance at Digital Real Estate Services and Cable Network Programming segments. News and Information Services and Book Publishing divisions also contributed to the results. However, this diversified media conglomerate continues to remain vulnerable to foreign currency headwinds and soft print advertising demand.”

Separately, TheStreet upgraded News from a “c+” rating to a “b-” rating in a report on Tuesday, December 5th. Three analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $15.40.

Shares of News (NASDAQ NWSA) traded up $0.04 during trading on Tuesday, reaching $16.59. The company had a trading volume of 3,381,900 shares, compared to its average volume of 1,919,183. News has a 1-year low of $11.41 and a 1-year high of $16.87. The company has a market capitalization of $9,642.38, a P/E ratio of 37.61, a P/E/G ratio of 3.36 and a beta of 2.06. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.56 and a quick ratio of 1.56.

News (NASDAQ:NWSA) last announced its quarterly earnings results on Thursday, November 9th. The company reported $0.07 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.02 by $0.05. News had a positive return on equity of 2.27% and a negative net margin of 7.96%. The business had revenue of $2.06 billion during the quarter, compared to the consensus estimate of $1.98 billion. During the same quarter in the prior year, the company posted ($0.01) earnings per share. News’s revenue was up 4.7% compared to the same quarter last year. sell-side analysts anticipate that News will post 0.49 EPS for the current fiscal year.

A number of large investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its stake in News by 2.4% in the 2nd quarter. Vanguard Group Inc. now owns 47,879,238 shares of the company’s stock valued at $655,946,000 after purchasing an additional 1,142,683 shares during the period. BlackRock Inc. grew its stake in News by 1.0% in the 2nd quarter. BlackRock Inc. now owns 25,306,802 shares of the company’s stock valued at $346,703,000 after purchasing an additional 250,842 shares during the period. Pzena Investment Management LLC grew its stake in News by 0.8% in the 3rd quarter. Pzena Investment Management LLC now owns 23,381,277 shares of the company’s stock valued at $310,036,000 after purchasing an additional 190,763 shares during the period. Dodge & Cox grew its stake in News by 10.6% in the 2nd quarter. Dodge & Cox now owns 10,882,034 shares of the company’s stock valued at $149,084,000 after purchasing an additional 1,040,473 shares during the period. Finally, Thompson Siegel & Walmsley LLC grew its stake in News by 4.5% in the 3rd quarter. Thompson Siegel & Walmsley LLC now owns 9,787,872 shares of the company’s stock valued at $129,787,000 after purchasing an additional 424,776 shares during the period. Hedge funds and other institutional investors own 60.97% of the company’s stock.

COPYRIGHT VIOLATION WARNING: This piece was reported by American Banking News and is the property of of American Banking News. If you are reading this piece on another domain, it was illegally copied and republished in violation of US and international copyright and trademark legislation. The correct version of this piece can be read at https://www.americanbankingnews.com/2017/12/12/news-nwsa-stock-rating-lowered-by-zacks-investment-research.html.

News Company Profile

News Corporation is a diversified media and information services company. The Company operates in five segments: News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, and Other. The Company’s business consists of range of media, including news and information services, sports programming in Australia, digital real estate services, book publishing, and pay-television (TV) distribution in Australia, that are distributed under the brands, including The Wall Street Journal, Dow Jones, Herald Sun, The Sun, The Times, HarperCollins Publishers, FOX SPORTS Australia and realestate.com.au.

Get a free copy of the Zacks research report on News (NWSA)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for News Corp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for News Corp and related companies with MarketBeat.com's FREE daily email newsletter.