NWSA has added another 2.2% this week to close at $29.16, extending a post-earnings rally that has now carried the stock up roughly 6% on the month — and the data shows short sellers have barely put up a fight.
The unwind in short positioning that was already underway ahead of the August 6 earnings print has continued since. Short interest now covers 3.2% of the free float, down 3.5% on the week and down more than 26% over the past month — the coverage level has nearly collapsed from the ~4.3% that prevailed in early July, when shorts briefly built back up around mid-month before retreating again. Borrow conditions reflect zero pressure: availability is effectively uncapped, with the lending pool running at a fraction of capacity. Cost to borrow, at 0.52%, has ticked higher by roughly 1% on the week and is up about 15% over the past month in absolute terms — but at half a percent, it remains firmly in "easy" territory and signals no scramble for shares. Options confirm the same tone: the put/call ratio is 0.037, running above its 20-day average but still historically low, and a fraction of the 52-week high of 0.81. Bears are not hedging; they are stepping aside.
The Street skews constructive, though recent analyst moves carry a note of caution on valuation. The most recent published changes show Citigroup and Macquarie as the active voices — Citi trimmed its target to $38 from $39 in May while keeping a Buy, and Macquarie upgraded to Outperform that same month with a target of $29.40. The consensus mean target of $35.54 implies roughly 22% upside from current levels, which is meaningful but has been gradually grinding lower across the past year as targets have been walked down rather than raised. Factor scores paint an interesting picture: EPS momentum is a standout, ranking in the 92nd percentile on a 30-day basis and the 89th percentile on 90 days, while the EPS surprise rank is 77th percentile — suggesting the fundamental beat cadence is genuine, not a one-off. The EV/EBITDA multiple has eased modestly to around 9.1x over the past month, while the P/E of 20.4x has nudged higher with the stock. Value scores remain the weakest pillar, ranking below the midpoint of the universe — the stock is not cheap, but momentum is carrying it.
The institutional holder list reinforces a picture of steady, if unspectacular, accumulation. State Street added over 3.1 million shares in the most recent reporting period, and BlackRock added 1.4 million. Independent Franchise Partners remains the largest single holder at 7.6% of shares. Dimensional Fund Advisors made one of the more notable moves, adding 2.3 million shares. There is no sign of aggressive rotation out. Insider activity in July was limited to routine award-and-sell patterns by directors at $25.78 — well below the current price — and carries no read-through to conviction on either side.
The short score has eased from 35.2 on August 10 to 33.6 now, drifting lower as the short unwind continues. Among peers, FOXA added 7.8% on the week and SBGI gained 4.5%, suggesting the broader media complex had a constructive week and NWSA's gains were not purely idiosyncratic. With the next earnings event not until November 5, the near-term question becomes whether the stock can hold the $29 level and continue to close the gap to analyst targets on fundamental momentum alone, or whether the post-earnings relief trade fades with no near-term catalyst on the horizon.
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