On August 15, 2023, Marygrace Degrazio, Chief Accounting Officer of News Corp (NWS, Financial), sold 9,754 shares of the company. This move is part of a broader trend of insider selling at News Corp, which we will explore in more detail.
Marygrace Degrazio has been with News Corp for several years, serving in various financial roles before her current position as Chief Accounting Officer. Her insider trading activities provide valuable insights into the financial health and future prospects of News Corp.
News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content to consumers throughout the world. The company comprises businesses across a range of media, including news and information services, book publishing, digital real estate services, cable network programming in Australia, and pay-tv distribution in Australia.
Over the past year, Marygrace Degrazio has sold 9,754 shares in total and purchased 0 shares in total. This trend of selling without any offsetting purchases raises questions about the company's future prospects.
The insider transaction history for News Corp shows that there have been 0 insider buys in total over the past year. Meanwhile, there have been 2 insider sells over the same timeframe. This trend of insider selling could be a red flag for potential investors.
On the day of Marygrace Degrazio’s recent sell, shares of News Corp were trading for $21.08 apiece. This gives the stock a market cap of $12.15 billion.
The price-earnings ratio is 79.96, which is higher than the industry median of 17.3 and higher than the company’s historical median price-earnings ratio. This high price-earnings ratio could indicate that the stock is overvalued.
With a price of $21.08 and a GuruFocus Value of $20.33, News Corp has a price-to-GF-Value ratio of 1.04. This means the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider selling activity at News Corp, coupled with the company's high price-earnings ratio, could be a cause for concern for potential investors. However, the stock's fair GF Value suggests that it may still be a reasonable investment at its current price.
