FOX (NASDAQ:FOX) Shares Gap Down – Should You Sell?

Fox Corporation (NASDAQ:FOX) gapped down prior to trading on Monday . The stock had previously closed at $58.92, but opened at $52.03. FOX shares last traded at $49.0260, with a volume of 837,116 shares changing hands.

FOX News Roundup

Here are the key news stories impacting FOX this week:

• Positive Sentiment: The Roku acquisition could strengthen Fox’s streaming strategy, giving Fox Corporation broader reach in free, ad-supported TV and a larger footprint in connected television. Fox Corporation announces $22B acquisition of Roku in landmark streaming and live TV deal
• Positive Sentiment: Management framed the transaction as a “defining moment” that could help Fox compete more effectively in the streaming wars and monetize its content across a bigger distribution platform. Fox to buy streaming device maker Roku for $22 billion
• Neutral Sentiment: Analysts and media reports say the deal could create a major player in U.S. television, but the long-term benefits depend on successful execution and whether Fox keeps Roku and Tubi operating as separate services. Fox to Buy Roku in $22 Billion Deal for Streaming Device and Technology Company
• Negative Sentiment: FOX shares are under pressure because the market may be worried about dilution, financing complexity, and whether paying about $22 billion for Roku can generate an attractive return. Fox Corp. Stock Slumps on $22B Roku Deal While Murdoch Calls It a “Defining Moment”

Analyst Ratings Changes

Several brokerages have issued reports on FOX. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of FOX in a report on Friday, May 22nd. Zacks Research raised shares of FOX from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 12th. Finally, Bank of America reissued an “underperform” rating and set a $45.00 price objective (down from $80.00) on shares of FOX in a research note on Wednesday, February 25th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, FOX presently has an average rating of “Moderate Buy” and an average price target of $75.00.

FOX Stock Down 15.6%

The company has a debt-to-equity ratio of 0.60, a current ratio of 2.90 and a quick ratio of 2.65. The firm’s 50-day moving average is $57.58 and its 200 day moving average is $58.57. The stock has a market cap of $20.89 billion, a price-to-earnings ratio of 13.23, a price-to-earnings-growth ratio of 6.95 and a beta of 0.54.

FOX (NASDAQ:FOX) last issued its quarterly earnings results on Monday, May 11th. The company reported $1.32 EPS for the quarter, topping the consensus estimate of $1.02 by $0.30. FOX had a net margin of 10.56% and a return on equity of 18.90%. The firm had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.78 billion. Sell-side analysts anticipate that Fox Corporation will post 4.76 earnings per share for the current fiscal year.

Institutional Investors Weigh In On FOX

Several large investors have recently made changes to their positions in FOX. AQR Capital Management LLC increased its position in shares of FOX by 65.6% in the first quarter. AQR Capital Management LLC now owns 26,715 shares of the company’s stock worth $1,408,000 after acquiring an additional 10,579 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of FOX by 4.9% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 12,446 shares of the company’s stock worth $656,000 after acquiring an additional 586 shares in the last quarter. NewEdge Advisors LLC acquired a new stake in shares of FOX in the first quarter worth $224,000. Woodline Partners LP increased its position in shares of FOX by 40.7% in the first quarter. Woodline Partners LP now owns 11,145 shares of the company’s stock worth $587,000 after acquiring an additional 3,222 shares in the last quarter. Finally, Jane Street Group LLC increased its position in shares of FOX by 427.0% in the first quarter. Jane Street Group LLC now owns 97,261 shares of the company’s stock worth $5,127,000 after acquiring an additional 78,804 shares in the last quarter. Institutional investors and hedge funds own 26.41% of the company’s stock.

FOX Company Profile

Fox Corporation (NASDAQ:FOX) is a U.S.-based media company that operates television broadcast, news and sports businesses. The company traces its contemporary structure to the 2019 reorganization that followed the sale of certain entertainment assets to The Walt Disney Company; Fox Corporation retained a portfolio centered on the Fox Broadcasting Company, Fox Television Stations, Fox News Media and Fox Sports. Over time the company has expanded its digital footprint through acquisitions and direct-to-consumer services, building a mix of linear and streaming distribution.

FOX’s core activities include the creation, aggregation and distribution of television programming and live sports, the operation of national cable news and business networks, and the ownership and operation of local broadcast stations.