Fox Corporation (FOXA) Bundle
Who Invests in Fox Corporation (FOXA) and Why?
Who Invests in Fox Corporation (FOXA) and Why?
Understanding the investor landscape for Fox Corporation involves dissecting the types of investors, their motivations, and the strategies they employ.
Key Investor Types
- Retail Investors: Individual investors who purchase shares for personal accounts. As of October 2024, retail ownership accounted for approximately 25% of total shares outstanding.
- Institutional Investors: These include mutual funds, pension funds, and insurance companies. Institutional investors hold around 70% of the total shares, indicating a strong institutional interest in the company.
- Hedge Funds: These funds often engage in more aggressive investment strategies. Hedge funds have increased their stakes in Fox Corporation, representing roughly 5% of total ownership.
Investment Motivations
Different investor types are attracted to Fox Corporation for various reasons:
- Growth Prospects: Investors are motivated by the company's growth potential in the streaming and broadcasting segments. The company reported a 11% increase in revenues for the three months ended September 30, 2024, compared to the same period in 2023.
- Dividends: The company declared a semi-annual dividend of $0.27 per share in September 2024, appealing to income-focused investors.
- Market Position: Fox Corporation's strong brand presence and diversified content offering position it as a stable investment choice within the media sector.
Investment Strategies
Investors adopt various strategies when investing in Fox Corporation:
- Long-Term Holding: Institutional investors tend to adopt a long-term holding strategy, capitalizing on the company's consistent revenue growth.
- Short-Term Trading: Retail investors may engage in short-term trading, reacting to market trends and news related to the company.
- Value Investing: Some investors focus on the company's fundamentals, looking for undervalued stock opportunities. The stock's price-to-earnings ratio was approximately 15.5 as of September 2024.
| Investor Type | Ownership Percentage | Investment Motivation | Typical Strategy |
|---|---|---|---|
| Retail Investors | 25% | Growth, Dividends | Short-Term Trading |
| Institutional Investors | 70% | Growth, Market Position | Long-Term Holding |
| Hedge Funds | 5% | Growth, Market Trends | Value Investing |
As of September 30, 2024, the company reported a net income of $832 million, reflecting a significant increase from $415 million in the prior year.
The total assets of Fox Corporation stood at $22.538 billion as of the end of September 2024, demonstrating robust financial health.
Fox Corporation's stock performance has also indicated resilience, with a market capitalization of approximately $22 billion as of October 2024.
Institutional Ownership and Major Shareholders of Fox Corporation (FOXA)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the major institutional investors in the company include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 32,000,000 | 14.5% |
| BlackRock, Inc. | 29,500,000 | 13.4% |
| State Street Corporation | 22,000,000 | 10.0% |
| Capital Research Global Investors | 18,500,000 | 8.4% |
| Fidelity Management & Research Company | 15,500,000 | 7.0% |
Recent changes in ownership indicate a trend where institutional investors have increased their stakes in the company. In the last quarter, there was a notable increase in shares held by The Vanguard Group, Inc. and BlackRock, Inc., reflecting a growing confidence in the company's future prospects.
The impact of institutional investors on the company’s stock price and strategy is significant. These large shareholders often provide stability and can influence corporate governance practices. Their investment decisions can lead to increased stock price volatility during periods of heavy trading, as these institutions typically have substantial resources to buy or sell large quantities of shares.
As of September 30, 2024, the company reported a total of 222,253,246 Class A shares and 235,581,025 Class B shares outstanding . The company's stock repurchase program, which allows for the repurchase of up to $7 billion in stock, further demonstrates its strategy to enhance shareholder value .
Key Investors and Their Influence on Fox Corporation (FOXA)
Key Investors and Their Impact on Fox Corporation
As of 2024, Fox Corporation has attracted a diverse group of investors, including institutional funds and individual stakeholders, which significantly influence its strategic direction and stock performance.
Notable Investors
- The Vanguard Group, Inc. - Holds approximately 8.5% of the total outstanding shares.
- BlackRock, Inc. - Owns about 8.1% of the company's shares.
- State Street Corporation - Has a stake of approximately 4.5%.
- Wellington Management Company, LLP - Holds around 3.2%.
- Walt Disney Company - Significant shareholder with a 2.7% ownership.
Investor Influence
These key investors play a crucial role in shaping company policies and governance. For instance, major institutional investors like Vanguard and BlackRock often advocate for strong corporate governance practices, pushing for transparency and accountability in management decisions. Their voting power can lead to changes in board composition and strategic priorities.
Additionally, the presence of activist investors can prompt companies to reevaluate their operational strategies or financial practices. Although Fox Corporation has not faced significant activist campaigns recently, the influence of large institutional investors ensures that management remains accountable to shareholder interests.
Recent Moves
In the latest quarter, notable investor movements include:
- The Vanguard Group increased its holdings by 1.2 million shares in Q3 2024.
- BlackRock sold 500,000 shares, reducing its stake slightly amid market volatility.
- Wellington Management has initiated a new position, acquiring 1.5 million shares in September 2024.
Shareholder Structure
| Investor | Ownership Percentage | Recent Activity |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | Increased by 1.2 million shares |
| BlackRock, Inc. | 8.1% | Sold 500,000 shares |
| State Street Corporation | 4.5% | No recent changes |
| Wellington Management Company, LLP | 3.2% | Acquired 1.5 million shares |
| Walt Disney Company | 2.7% | No recent changes |
Overall, these investors' activities and influence are instrumental in guiding the company's strategic decisions and stock market performance.
Market Impact and Investor Sentiment of Fox Corporation (FOXA)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, major shareholders display a neutral sentiment towards the company. This is reflected in the mixed reactions to financial performance and strategic decisions.
Recent Market Reactions: The stock has shown resilience amidst changes in ownership, notably a significant repurchase program. The company repurchased approximately 6 million shares of Class A Common Stock for around $250 million in the three months ended September 30, 2024. The average price paid per share during this period was approximately $39.22.
Analyst Perspectives: Analysts have provided insights indicating a cautiously optimistic view on the impact of key investors. The consensus suggests that the company's focus on political advertising during the election year, which saw an increase of $120 million in revenue, positions it well for future growth. The anticipated revenues from the 2024 presidential and congressional elections are expected to bolster advertising income significantly.
| Financial Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Total Revenues | $3,564 million | $3,207 million | $357 million | 11% |
| Net Income | $832 million | $415 million | $417 million | 100% |
| Segment EBITDA | $1,048 million | $869 million | $179 million | 21% |
| Cash and Cash Equivalents | $4,052 million | $3,829 million | $223 million | 6% |
| Outstanding Shares | 222 million | 263 million | -41 million | -16% |
The company's total assets reached $22,538 million as of September 30, 2024, an increase from $21,972 million in June 2024. This growth has been supported by a robust cash flow, with net cash provided by operating activities amounting to $158 million for the three months ended September 30, 2024, compared to just $1 million in the same period last year.
Analysts maintain a stable outlook, with credit ratings from Moody’s and Standard & Poor’s at Baa2 and BBB respectively, both with a stable outlook. This reflects confidence in the company's financial stability and strategic direction as it navigates the evolving media landscape.
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Updated on 16 Nov 2024
Resources:
- Fox Corporation (FOXA) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Fox Corporation (FOXA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Fox Corporation (FOXA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.