Cable One (NYSE:CABO) Shares Gap Down - Should You Sell?

Key Points

• Cable One's stock price experienced a significant drop, opening at $155.72 after closing at $165.01 the previous day.
• Analysts have issued a "sell" or "underweight" rating, with Wells Fargo reducing the price target from $210.00 to $120.00.
• The company reported an earnings miss of $5.00 per share, with reported earnings of $3.23 compared to analysts' expectations of $8.23.

Cable One, Inc. (NYSE:CABO - Get Free Report)'s stock price gapped down before the market opened on Thursday . The stock had previously closed at $165.01, but opened at $155.72. Cable One shares last traded at $153.59, with a volume of 4,188 shares changing hands.

Analyst Ratings Changes

CABO has been the topic of a number of research reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Cable One in a research note on Wednesday, October 8th. Wells Fargo & Company dropped their price target on shares of Cable One from $210.00 to $120.00 and set an "underweight" rating on the stock in a research note on Friday, August 1st. Five analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average target price of $279.25.

Cable One Price Performance

The stock has a market capitalization of $869.67 million, a P/E ratio of -1.75 and a beta of 0.87. The stock's fifty day moving average is $164.19 and its 200-day moving average is $166.84. The company has a debt-to-equity ratio of 2.16, a current ratio of 0.37 and a quick ratio of 0.37.

Cable One (NYSE:CABO - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The company reported $3.23 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $8.23 by ($5.00). The business had revenue of $381.07 million during the quarter, compared to the consensus estimate of $379.81 million. Cable One had a positive return on equity of 8.40% and a negative net margin of 32.18%.During the same quarter in the prior year, the company posted $10.29 earnings per share. On average, equities analysts anticipate that Cable One, Inc. will post 32.08 earnings per share for the current year.

Institutional Investors Weigh In On Cable One

A number of large investors have recently bought and sold shares of the business. Burgundy Asset Management Ltd. boosted its holdings in Cable One by 18.0% in the second quarter. Burgundy Asset Management Ltd. now owns 474,730 shares of the company's stock worth $64,473,000 after purchasing an additional 72,327 shares in the last quarter. Clarkston Capital Partners LLC boosted its holdings in Cable One by 34.2% during the first quarter. Clarkston Capital Partners LLC now owns 357,192 shares of the company's stock valued at $94,931,000 after acquiring an additional 90,934 shares during the period. Canada Pension Plan Investment Board boosted its holdings in Cable One by 57.0% during the first quarter. Canada Pension Plan Investment Board now owns 323,300 shares of the company's stock valued at $85,923,000 after acquiring an additional 117,389 shares during the period. Private Management Group Inc. boosted its holdings in Cable One by 103.9% during the second quarter. Private Management Group Inc. now owns 311,131 shares of the company's stock valued at $42,255,000 after acquiring an additional 158,564 shares during the period. Finally, DAVENPORT & Co LLC boosted its holdings in Cable One by 11.8% during the third quarter. DAVENPORT & Co LLC now owns 271,723 shares of the company's stock valued at $48,109,000 after acquiring an additional 28,761 shares during the period. 89.92% of the stock is currently owned by institutional investors.

Cable One Company Profile

Cable One, Inc, together with its subsidiaries, provides data, video, and voice services in the United States. The company offers residential data services, a service to enhance Wi-Fi signal throughout the home. It also provides various residential video services from basic video service to digital services with access to hundreds of channels; and provides a cloud-based DVR feature that does not require the use of a set-top boxes.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.