With shares of News Corp. (NASDAQ:NWSA) trading around $16, is NWSA an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework.
T = Trends for a Stock’s Movement
News Corp. is a diversified media and information services company. The company now operates in five segments: News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, and Other. News Corp.’s business consists of news and information services, sports programming in Australia, digital real estate services, book publishing, and pay-TV distribution in Australia. Its products and services are distributed under the following brands: The Wall Street Journal, Dow Jones, Herald Sun, The Sun, The Times, HarperCollins Publishers, Fox Sports Australia, and realestate.com.au. Lastly, News Corp. is a developing provider of digital education content, assessment, and delivery services.
News Corp. had some of its voting stock purchased by Southeastern Asset Management, the hedge fund that teamed up with Carl Icahn to oppose Michael Dell’s buyout of Dell (NASDAQ:DELL). The hedge fund bought 11.9 percent of the company’s voting stock, making it the second-largest shareholder behind Rupert Murdoch’s 39 percent stake. The stock is valued at $397 million and accounts for a 4.1 percent economic interest in the newspaper and publishing company, according to Bloomberg.
T = Technicals on the Stock Chart Are Mixed
News Corp. stock has been trending higher after the announcement of its spinoff. It looks like the stock is currently moving higher and attempting to make up lost ground. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, News Corp. is trading between its rising key averages, which signal neutral price action in the near term.