Cable One (NYSE:CABO) Shares Gap Up - Still a Buy?

Key Points

• Cable One shares gapped up during trading, opening at $138.80 after a previous close of $127.98, with last traded shares at $136.18.
• The company reported a loss in its latest earnings report, with $3.23 earnings per share, significantly missing estimates of $8.23, while revenue was $381.07 million, slightly above expectations.
• Several hedge funds have increased their positions in Cable One, including Burgundy Asset Management, which raised its stake by 27.2% in the first quarter.

Cable One, Inc. (NYSE:CABO - Get Free Report)'s stock price gapped up prior to trading on Friday . The stock had previously closed at $127.98, but opened at $138.80. Cable One shares last traded at $136.18, with a volume of 30,487 shares traded.

Analyst Ratings Changes

A number of research firms have recently commented on CABO. Wells Fargo & Company dropped their price objective on Cable One from $210.00 to $120.00 and set an "underweight" rating on the stock in a research note on Friday. BNP Paribas Exane raised Cable One from an "underperform" rating to a "neutral" rating and set a $125.00 target price on the stock in a report on Monday, June 16th. Raymond James Financial lowered Cable One from an "outperform" rating to a "market perform" rating in a report on Friday, May 2nd. KeyCorp restated a "sector weight" rating on shares of Cable One in a research note on Friday, May 2nd. Finally, JPMorgan Chase & Co. dropped their target price on shares of Cable One from $325.00 to $222.00 and set a "neutral" rating on the stock in a research report on Tuesday, May 6th. One investment analyst has rated the stock with a sell rating and five have assigned a hold rating to the stock. Based on data from MarketBeat, Cable One currently has a consensus rating of "Hold" and an average price target of $279.25.

Cable One Price Performance

The stock has a market capitalization of $851.03 million, a P/E ratio of -1.71 and a beta of 0.79. The company has a current ratio of 0.37, a quick ratio of 0.36 and a debt-to-equity ratio of 2.16. The company has a fifty day simple moving average of $136.11 and a two-hundred day simple moving average of $212.59.

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

Insider Buying and Selling

In other Cable One news, Director Wallace R. Weitz acquired 7,000 shares of Cable One stock in a transaction dated Friday, June 13th. The stock was bought at an average cost of $132.53 per share, for a total transaction of $927,710.00. Following the purchase, the director directly owned 17,140 shares in the company, valued at approximately $2,271,564.20. This represents a 69.03% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Mary E. Meduski purchased 250 shares of the business's stock in a transaction on Wednesday, June 11th. The shares were acquired at an average cost of $148.00 per share, with a total value of $37,000.00. Following the acquisition, the director directly owned 3,599 shares in the company, valued at approximately $532,652. The trade was a 7.46% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders purchased 7,400 shares of company stock worth $984,342. 0.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Cable One

A number of large investors have recently bought and sold shares of CABO. DAVENPORT & Co LLC grew its stake in shares of Cable One by 249.2% during the second quarter. DAVENPORT & Co LLC now owns 242,962 shares of the company's stock worth $32,997,000 after buying an additional 173,384 shares during the last quarter. Canada Pension Plan Investment Board boosted its holdings in shares of Cable One by 57.0% during the 1st 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 in the last quarter. Clarkston Capital Partners LLC grew its position in Cable One by 34.2% during the 1st quarter. Clarkston Capital Partners LLC now owns 357,192 shares of the company's stock worth $94,931,000 after acquiring an additional 90,934 shares during the last quarter. Burgundy Asset Management Ltd. increased its holdings in Cable One by 27.2% in the 1st quarter. Burgundy Asset Management Ltd. now owns 402,403 shares of the company's stock worth $106,947,000 after purchasing an additional 86,019 shares in the last quarter. Finally, Raymond James Financial Inc. acquired a new position in Cable One in the 4th quarter worth about $28,129,000. 89.92% of the stock is currently owned by institutional investors and hedge funds.

About Cable One

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.