FOX (NASDAQ:FOXA) Stock Sees Heavy Call Option Buying

Fox Corporation (NASDAQ:FOXA) was the recipient of unusually large options trading on Friday. Stock traders bought 6,021 call options on the stock. This is an increase of 118% compared to the average volume of 2,759 call options.

Key Headlines Impacting FOX

Here are the key news stories impacting FOX this week:

• Positive Sentiment: Bank of America upgraded Fox Corporation (FOXA) to “Buy” from “Underperform” and raised its price target to $85 from $54. The bank expects the Roku acquisition to strengthen Fox’s growth outlook and generate approximately $700 million in additional annual earnings by 2028. Fox upgraded to Buy at Bank of America as Roku deal boosts growth outlook
• Positive Sentiment: Fox’s acquisition of Roku gives it a direct platform for distributing programming to viewers, potentially improving the reach and monetization of major content such as Sunday NFL games. Why Fox Can Finally Breathe a Sigh of Relief With Roku Deal—and Why the NFL Can’t
• Positive Sentiment: Options activity was notably bullish: investors bought 6,021 FOX call contracts, more than double the average volume of 2,759. This suggests increased speculative interest in further upside, though options activity is not a guarantee of future performance.
• Positive Sentiment: Fox received additional positive attention from a Zacks upgrade, with commentary suggesting the stock may have been undervalued relative to earnings estimates and intrinsic value. Fox Wins A Zacks Upgrade
• Neutral Sentiment: Reports indicate that Fox has officially acquired Roku, although some analyst commentary still describes the transaction as pending. The strategic benefits are positive, but execution, integration costs, and the ability to convert Roku’s platform into sustained earnings remain key considerations. FOX OFFICIALLY ACQUIRES ROKU
• Negative Sentiment: Fox recently traded below its 200-day moving average, a technical warning that may limit near-term momentum despite the stronger fundamental outlook. FOX Share Price Crosses Below 200-Day Moving Average

Wall Street Analyst Weigh In

FOXA has been the topic of a number of recent research reports. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $80.00 target price on shares of FOX in a research report on Friday, August 14th. Wells Fargo & Company upgraded shares of FOX from an “equal weight” rating to an “overweight” rating and boosted their price objective for the stock from $65.00 to $80.00 in a report on Friday, August 14th. Raymond James Financial upgraded shares of FOX to a “strong-buy” rating in a report on Friday. Bank of America raised shares of FOX from an “underperform” rating to a “buy” rating and upped their price objective for the company from $54.00 to $85.00 in a research report on Friday. Finally, Fox Advisors set a $85.00 target price on FOX in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $78.12.

Insiders Place Their Bets

In related news, CEO Lachlan Murdoch purchased 149,934 shares of the firm’s stock in a transaction on Tuesday, September 15th. The stock was purchased at an average price of $68.53 per share, for a total transaction of $10,274,977.02. Following the acquisition, the chief executive officer directly owned 1,401,713 shares in the company, valued at $96,059,391.89. The trade was a 11.98% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 20.89% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On FOX

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Squarepoint Ops LLC raised its stake in shares of FOX by 12.4% in the 2nd quarter. Squarepoint Ops LLC now owns 1,127,389 shares of the company’s stock valued at $58,805,000 after purchasing an additional 124,143 shares in the last quarter. Allianz Asset Management GmbH grew its stake in FOX by 2.6% in the second quarter. Allianz Asset Management GmbH now owns 966,811 shares of the company’s stock worth $50,429,000 after purchasing an additional 24,511 shares in the last quarter. Junto Capital Management LP acquired a new position in FOX in the second quarter worth about $34,773,000. SG Americas Securities LLC increased its holdings in FOX by 299.8% in the first quarter. SG Americas Securities LLC now owns 511,811 shares of the company’s stock valued at $29,890,000 after buying an additional 383,782 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in FOX in the second quarter valued at about $21,519,000. Institutional investors own 52.52% of the company’s stock.

FOX Stock Up 0.3%

Shares of FOXA traded up $0.17 during trading on Friday, reaching $64.15. The company’s stock had a trading volume of 4,128,785 shares, compared to its average volume of 4,345,276. The company has a market cap of $26.92 billion, a price-to-earnings ratio of 16.75, a P/E/G ratio of 1.14 and a beta of 0.60. The company has a quick ratio of 2.99, a current ratio of 3.17 and a debt-to-equity ratio of 0.56. The company has a fifty day moving average of $65.26 and a two-hundred day moving average of $61.93. FOX has a twelve month low of $48.34 and a twelve month high of $76.39.

FOX (NASDAQ:FOXA) last released its quarterly earnings results on Thursday, August 6th. The company reported $1.79 earnings per share for the quarter, topping analysts’ consensus estimates of $1.44 by $0.35. The business had revenue of $4.21 billion during the quarter, compared to the consensus estimate of $3.64 billion. FOX had a net margin of 9.84% and a return on equity of 20.64%. The business’s quarterly revenue was up 28.1% compared to the same quarter last year. During the same quarter last year, the company earned $1.27 earnings per share. On average, sell-side analysts predict that FOX will post 5.94 EPS for the current fiscal year.

FOX Dividend Announcement

The business also recently disclosed a dividend, which was paid on Wednesday, September 23rd. Shareholders of record on Wednesday, September 2nd were paid a dividend of $0.29 per share. This represents a yield of 86.0%. The ex-dividend date was Wednesday, September 2nd. FOX’s dividend payout ratio is 15.14%.

About FOX

Fox Corporation (NASDAQ: FOXA) is a U.S. media company that produces and distributes news, sports, and entertainment programming. Its portfolio includes FOX News Media, FOX Sports, FOX Entertainment, FOX Television Stations, and Tubi, an ad-supported streaming service offering movies, television programs, and other digital content.

FOX News Media operates FOX News Channel, FOX Business Network, FOX News Digital, and related audio and digital platforms. FOX Sports provides national and regional sports programming, while FOX Entertainment develops and broadcasts scripted and unscripted programming through the FOX broadcast network and other platforms.