Twenty-First Century Fox, Inc. (FOXA) Insiders Are Selling, Here’s Why

The 12-month median price target for Twenty-First Century Fox, Inc. (FOXA) assigned by the analysts stands at $51.25, which represents a return potential of 0.1 percent when compared to the closing price of the stock of $51.2 on Wednesday, March 13. The lowest price target for the stock is $46 — slightly more than -10.16 percent from FOXA’s current share price. The stock will probably climb -1.89 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $56-month high price target. This represents a whopping 9.37 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 69.62 on daily chart, which may remain a cause for concern. If the price breaks below $50.73 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $51.33 mark may result into a pull-back move towards $51.47 level. The stock is currently hovering around the first support level of $50.96. Below this, the next support is placed in the zone of $50.73. Till the time, the FOXA stock trades above this level, bulls have nothing to fear.

Shares of Twenty-First Century Fox, Inc. (FOXA) are trading at a P/E ratio of 16.72 times earnings reported for the past 12 months. The industry FOXA operates in has an average P/E of 100.66. Its P/E ratio went as low as 8.28X and as high as 21.07 over the 5-year span. Further, it is sporting a 3.06 on the Price-to-Sales ratio. Compare this with the industry average P/S of 8.26. 35.4 percent is the gross profit margin for Twenty-First Century Fox, Inc. and operating margin sits at 49.8 percent. Along with this, the net profit margin is 44.7 percent.

On 13th of March, Twenty-First Century Fox, Inc. (NASDAQ:FOXA) shares ended higher after a volatile session. The shares accumulated 0.32 points or 0.63 percent at $51.2 with a heavy trade volume of 39.605 million shares. After opening the session at $51.02, the shares went as high as $51.23 and as low as $50.86, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $95.1 billion and now has 1.86 billion shares outstanding. Twenty-First Century Fox, Inc. (FOXA) stock has gained 3.33 percent of market value in 21 trading days.

In last reported earnings results, FOXA earned $0.37 per share, better than the $0.33, 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, 15.82 percent next year and continue to increase by 8.03 percent annually for the next 5 years. Investors will get their next glimpse of FOXA’s Q3 earnings on May 08. Analysts are forecasting revenue to climb 2.3 percent to $7.59B in the next fiscal quarter, while earnings are seen soaring by nearly 14.29 percent to $0.56 per share. 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.

FOXA stock has a trailing 3-year beta of 0.98, 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 6.4 percent year to date (YTD) against a rise of 34.81 percent in 12 month’s time. The company’s shares still trade -0.14 percent away from its 1-year high of $51.27 and 44.63 percent up from 52-week low of $35.40. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.