Shares of entertainment giant Fox Corp (NASDAQ:FOXA) are up in early trading, after the firm announced a first-quarter earnings beat, as well as year-over-year revenue growth that came in higher than analysts' estimates. The media concern's earnings report marks its first as a standalone company, after Twenty-First Century Fox sold assets to Disney (DIS). Fox also announced it would be acquiring a 5% stake of Canadian gaming name Stars Group (TGS). In response, FOXA stock has surged 4.5% to $39.10 in early trading, eyeing its best day since March.
FOXA began trading as a standalone public company in March, peaking at $41.95 on March 18. While the equity saw a decline into April, bottoming at $35.90 on April 3, FOXA has since rebounded roughly 9%.
There's still room on the table for upgrades, should Fox continue its rally. While six analysts gave FOXA a "buy" or better rating, the other five slapped it with a tepid "hold." The consensus 12-month target price of $44.29, however, represents an area not yet touched by the equity.
Options traders have been resoundingly optimistic on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). In the last two weeks, approximately 12.5 Fox calls have been picked up for every put -- a ratio that sits higher than all other readings from the past year, hinting at a much healthier appetite than usual for bullish bets lately.