Fox Stock Dips Despite TMZ Entertainment Buyout

Year-to-date, FOXA sports a roughly 24% lead

Digital Content Manager
Sep 14, 2021 at 10:17 AM
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The shares of Fox Corp (NASDAQ:FOXA) are down 1.8% at $35.78 this morning, even after the media company announced it acquired the TMZ entertainment platform and its media properties from AT&T-owned (T) Warner Media for an undisclosed amount.

FOXA has been trading mostly sideways on the charts since April, after it pulled back from a March 16, all-time high of $44.80. The 200-day moving average has been providing a floor for the shares for the last couple of months, though overhead pressure at the $37.50 level has been keeping a tight lid on gains. Year-to-date, FOXA is up about 24%.

The brokerage is bunch is bullish towards Fox stock. Of the nine analysts in coverage, six sport a "buy" or better rating, with zero "sells" on the books. Plus, the 12-month consensus target price of $42.09 is a 16.4% premium to the security's current perch. 

That optimism is echoed in the options pits, where calls are popular. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FOXA's 50-day call/put volume ratio of 4.57 stands higher than 85% of readings from the past year. This means long calls have been getting picked up at a quicker-than-usual clip in the last two months.

 

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