Cable One (NYSE:CABO) Stock Price Down 3.4% - Time to Sell?

Key Points

• Huge earnings miss: Cable One reported ($1.35) EPS versus $7.60 expected, posting a negative net margin (-23.74%) and a negative P/E, highlighting material near-term operating weakness.
• Analyst sentiment has turned bearish: Multiple firms cut ratings and price targets (TD Cowen cut its PT from $260 to $142; Wells Fargo to $90; BNP Paribas to $80) and MarketBeat lists a consensus rating of "Reduce" with a $114.25 target.
• Shares fell on thin volume with weak technicals and leverage concerns: The stock dropped 3.4% on Tuesday with volume down ~96% vs. average, the 50-day SMA sits below the 200-day, market cap is about $524M, and the company shows high debt-to-equity (1.81) and low liquidity (current and quick ratios ~0.40).

Shares of Cable One, Inc. (NYSE:CABO - Get Free Report) traded down 3.4% on Tuesday . The company traded as low as $93.81 and last traded at $91.6250. 6,353 shares were traded during trading, a decline of 96% from the average session volume of 159,086 shares. The stock had previously closed at $94.83.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. TD Cowen decreased their price objective on shares of Cable One from $260.00 to $142.00 and set a "hold" rating for the company in a research report on Friday, February 27th. Weiss Ratings reissued a "sell (d-)" rating on shares of Cable One in a research report on Wednesday, January 21st. Wells Fargo & Company cut their price target on shares of Cable One from $107.00 to $90.00 and set an "underweight" rating on the stock in a research note on Friday, February 27th. Zacks Research raised shares of Cable One from a "hold" rating to a "strong-buy" rating in a report on Thursday, March 12th. Finally, BNP Paribas Exane downgraded shares of Cable One from a "neutral" rating to an "underperform" rating and set a $80.00 price objective for the company. in a research note on Tuesday, February 24th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, Cable One presently has an average rating of "Reduce" and a consensus price target of $114.25.

Cable One Stock Performance

The firm's 50 day simple moving average is $98.42 and its 200 day simple moving average is $122.16. The firm has a market capitalization of $523.53 million, a price-to-earnings ratio of -1.46 and a beta of 0.70. The company has a debt-to-equity ratio of 1.81, a quick ratio of 0.40 and a current ratio of 0.40.

Cable One (NYSE:CABO - Get Free Report) last issued its earnings results on Thursday, February 26th. The company reported ($1.35) earnings per share (EPS) for the quarter, missing the consensus estimate of $7.60 by ($8.95). Cable One had a positive return on equity of 7.36% and a negative net margin of 23.74%.The business had revenue of $363.74 million for the quarter, compared to analysts' expectations of $368.59 million. Sell-side analysts forecast that Cable One, Inc. will post 32.08 earnings per share for the current fiscal year.

Institutional Trading of Cable One

A number of hedge funds have recently modified their holdings of the stock. Corient Private Wealth LLC acquired a new stake in Cable One during the fourth quarter worth about $490,000. State of Tennessee Department of Treasury lifted its holdings in Cable One by 207.1% in the fourth quarter. State of Tennessee Department of Treasury now owns 3,507 shares of the company's stock valued at $396,000 after acquiring an additional 2,365 shares during the period. Empowered Funds LLC boosted its position in Cable One by 8.9% in the 4th quarter. Empowered Funds LLC now owns 24,724 shares of the company's stock worth $2,790,000 after purchasing an additional 2,016 shares in the last quarter. XTX Topco Ltd acquired a new stake in shares of Cable One during the 4th quarter worth approximately $1,288,000. Finally, VARCOV Co. acquired a new stake in shares of Cable One during the 4th quarter worth approximately $228,000. Hedge funds and other institutional investors own 89.92% of the company's stock.

Cable One Company Profile

Cable One, Inc NYSE: CABO is an American provider of broadband communications services, offering a suite of residential and business solutions over a hybrid fiber-coaxial network. The company delivers high-speed internet access, digital video, voice communications and mobile services, alongside advanced managed Wi-Fi and cybersecurity tools. Cable One's infrastructure supports both traditional cable offerings and converged IP-based platforms designed to meet evolving customer needs.

In addition to consumer-focused services, Cable One caters to small and medium-sized enterprises with dedicated business-class connectivity, Ethernet solutions and cloud-based voice applications.

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