Fox (FOXA) | News Based Sentiment Analysis

• On September 3, 2025, Fox Corporation announced a strong Q4 fiscal 2025, exceeding expectations with earnings per share of $1.27, compared to estimates of $1.01, and revenue of $3.29 billion, surpassing the expected $3.12 billion – a 6.3% year-over-year increase. This performance was fueled by growth in digital advertising on Tubi, strong ratings in news and sports, and a 3% increase in affiliate fees, signaling continued strength in core businesses.
• Following the positive earnings release on September 3, 2025, Fox significantly increased its semi-annual dividend to $0.28 per share, a 55.6% jump from the previous $0.18, payable on September 24, 2025. This substantial increase demonstrates a commitment to returning capital to shareholders and boosts the stock's appeal to income-focused investors.
• Despite the positive earnings, shares of Fox fell 5.4% on September 9, 2025, after the company announced a secondary offering of its Class B common stock. This offering increases the supply of shares and raises concerns about potential dilution, temporarily offsetting some of the positive momentum.
• The Murdoch Family Trusts sold $2.06 billion in FOX and FOXA shares on September 10, 2025, including sales at $33.99 and $53.46 per share. While Fox Corporation did not receive proceeds from these transactions, the sale signals a shift in ownership and control within the family.
• FOX Nation expanded its content offerings with a partnership announced on September 4, 2025, with Curtis "50 Cent" Jackson and Lionsgate Alternative Television for a new six-part true crime series, "50 Ways to Catch a Killer," which premiered on September 16, 2025. This partnership aims to attract new viewers to the streaming platform.
• Wells Fargo maintained a "Buy" rating for FOXA on September 7, 2025, and increased its price target to $70.00, suggesting a potential upside of +20.17% from the stock's reference price. However, the overall analyst consensus on September 9, 2025, was a "Buy" rating with an average price target of $55.87, forecasting a -2.31% decrease in the stock price over the next year.
• An analyst report from Morningstar published on September 11, 2025, highlighted Fox's "excellent fiscal fourth quarter" and "encouraging digital prospects," noting that the stock price was $58.72 on that date. The report emphasized the continued strength of linear television networks alongside the growth of Tubi and the upcoming launch of Fox One.

The Investment Story: September was a month of contrasts for Fox Corporation, showcasing strong financial performance and strategic content initiatives alongside a secondary offering and insider selling, creating short-term volatility. The resolution of the Murdoch Family Trust matter provides clarity on leadership and control.

What It Means for Investors: The strong Q4 results and increased dividend are positive signals, but the secondary offering and insider sales introduce risk. Investors should focus on the growth of Tubi and Fox One, and monitor Lachlan Murdoch's leadership as the company navigates the evolving media landscape.

Looking Ahead: Investors should continue to monitor the impact of the secondary offering and the progress of Fox One's bundling strategy, particularly as Lachlan Murdoch discussed potential bundling opportunities with ESPN on September 10, 2025.

The Bottom Line: Fox Corporation remains a compelling investment underpinned by a solid financial foundation and a clear strategic vision, despite short-term headwinds. The company's focus on direct-to-consumer growth and the resolution of family trust issues position it for long-term success.