The stock of News Corporation (NASDAQ:NWSA) is now priced at $14.84 and the shares are 0.5 points up or 3.52% higher compared to its previous closing price of $14.34. The stock had 4.536 million contracts set over the past session. NWSA shares’ daily volume is compared to its average trading volume at 2.292 million shares. However, it has a float of 586 million and although its performance was 14.15% over the week, it’s one to watch. Analysts have given the NWSA stock a yearly average price target of $13.43 per share. It means the stock’s downside potential is -9.5% with the NWSA share price recently placing at $14.34 to $14.965. However, some brokerage firms have priced the stock below the average, including one that has called $10.
The shorts are running away from the News Corporation stock, with the latest data on short interest released on July 15, 2020, showing that short interest numbers in the NWSA shares have declined. Short interest in the stock represents just 1.39% of its float, but the volume has dropped by -45599. The volume of shorted shares dropped to 8.174 million from 8.219 million shares over the last two weeks. The average intraday trading volume has been 1.641 million shares, which means that days to cover moved to roughly 4.980377.
In the last trading session, News Corporation (NASDAQ:NWSA) raised by $1.84 over the week and gained $2.91 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $15.07. The stock recorded its established 52-week high on 01/17/20.
Since 04/02/20, the stock has traded to a low of $7.9 at 87.85%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.51. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, News Corporation’s two-week RSI is 81.3. This suggests that the stock is oversold at the moment and that NWSA shares’ price movement remains not stable. The stochastic readings are equally revealing at 94.89% meaning the NWSA share price is currently in oversold territory.
The technical chart shows that the NWSA stock will likely settle at between $15.09 and $15.34 per share. However, if the stock dips below $14.47, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $14.09.
Currently, the stock is trading in the green of MACD, with a reading of 0.8. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at JP Morgan raised their recommendation for NWSA from Underweight to Neutral in July 22 review while maintain their target price of $10 to $12. Credit Suisse analysts upgraded their recommendation of the stock from Neutral to Outperform in a flash note released to investors on August 12. Citigroup seeing the improvements upgraded the stock from Neutral to Buy on January 14.
The average rating for the NWSA equity is 3.13 and is currently gathering a bearish momentum. Of 7 analysts tracking News Corporation polled by Reuters, 2 rated NWSA as a hold. The remaining 5 analysts were split evenly. However, the split wasn’t equal as a majority (3) rated it as a buy or strong buy. 2 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the NWSA stock price is 36.73X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands below the group’s average of 42.9. News Corporation has its P/E ratio at 1.2, which means that the stock is currently trading at a discount relative to the 1.7 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for News Corporation (NASDAQ:NWSA) will increase by about 1.92%, which will see them reach $1960 million. The company’s full-year revenues are, however, expected to diminish by about -7.77%, down from $9010 million to $8310 million. NWSA’s expected adjusted earnings should drop almost -100% to end up at $0 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -4.55% to record $0.21/share.