Twenty-First Century Fox, Inc. (FOXA) Ready To Tore A Hole Through The Roof

After opening Tuesday at around $49.61, Twenty-First Century Fox, Inc. (NASDAQ:FOXA) stock surged to as high as $49.65. It then made a downturn, dipping as low as $49.5. Although the stock bounced a bit into the close, it finished the day at $49.54, down -0.01 points or -0.02 percent on the day. The final volume for the day was 4.382 million, which was less than its average volume. The firm is left with a market cap of $91.3 billion and now has 1.84 billion shares outstanding. Twenty-First Century Fox, Inc. (FOXA) stock has gained 1.62 percent of market value in 21 trading days.

FOXA stock has a trailing 3-year beta of 0.99, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $7.47 a share in the trailing twelve months. The stock’s value has surged 2.95 percent year to date (YTD) against a rise of 38.65 percent in 12 month’s time. The company’s shares still trade -1.21 percent away from its 1-year high of $50.15 and 39.94 percent up from 52-week low of $35.40. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Twenty-First Century Fox, Inc. (FOXA) will probably climb 2.12 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $56 price as 12-month high target. This represents a whopping 13.04 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $50.5, which represents a return potential of 1.94 percent when compared to the closing price of the stock of $49.54 on Tuesday, February 12. The lowest price target for the stock is $46 — slightly more than -7.15 percent from FOXA’s current share price.

History has shown that shares in Twenty-First Century Fox, Inc. have gone up on 12 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. Investors will get their next glimpse of FOXA’s Q3 earnings on May 08. Analysts are forecasting revenue to climb 5.6 percent to $8.49B in the fiscal third quarter, while earnings are seen soaring by nearly -21.43 percent to $0.33 per share. It earned $0.52 per share, in line with the $0.52, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $8.5B, better than the $8.48B analysts expected. Earnings are estimated to increase by 6 percent this year, 13.22 percent next year and continue to increase by 7.99 percent annually for the next 5 years.

Let’s take a look at some insider activity at Twenty-First Century Fox, Inc. (NASDAQ:FOXA) and see the pattern. The earliest insider trade took place on 08/16/2018. Murdoch Lachlan K parted with a total of 137.8 thousand shares of company at average share price of $45.48. The total for the sales was set at $6.27 million. After this transaction, the Executive Chairman account balance stood at 138.26 thousand shares. The stock grew 8.95 percent since that insider sale. On 08/16/2018, Murdoch Lachlan K, Executive Chairman, purchased 137.8 thousand shares at a price per share of $45.48. This added 6.27 million shares to the insider’s fortune and the stock saw a 8.95 percent rally in value since the news became public. This transaction left 138.26 thousand shares in the Executive Chairman account.

On 12/18/2017, Sr. EVP, Group General Counsel Zweifach Gerson performed a sale transaction worth $3.86 million. This sale at $34.9 each has eliminated 110.73 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 41.98 percent increase since the transaction was reported. The insider now is left with 36.01 thousand shares remaining in the account. Devoe David F, who performs the Director job, sold 30.15 thousand shares for $844.47 thousand. The disposal occurred on 08/15/2017 was priced at $28.01 per share. The share price soared 76.9 percent since the reporting date. Devoe David F now left with a stake of 4.08 thousand FOXA stock worth $202.12 thousand after the insider selling.

The stock is currently hovering around the first support level of $49.48. Below this, the next support is placed in the zone of $49.41. Till the time, the FOXA stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 59.64 on daily chart, which may remain a cause for concern. If the price breaks below $49.41 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $49.63 mark may result into a pull-back move towards $49.71 level.

Shares of Twenty-First Century Fox, Inc. (FOXA) are trading at a P/E ratio of 6.63 times earnings reported for the past 12 months. The industry FOXA operates in has an average P/E of 36.26. Its P/E ratio went as low as 8.28X and as high as 29.05 over the 5-year span.Further, it is sporting a 2.94 on the Price-to-Sales ratio. Compare this with the industry average P/S of 76575.71. 35.4 percent is the gross profit margin for Twenty-First Century Fox, Inc. and operating margin sits at 14.2 percent. Along with this, the net profit margin is 14.4 percent.