Cable One (NYSE:CABO) Trading Down 6.4% - What's Next?

Key Points

• Cable One's stock price dropped 6.4% on Monday, trading as low as $125.49, with a significant decrease in trading volume compared to the average.
• Analysts recently downgraded the stock, with noteworthy changes including JPMorgan Chase lowering the price target from $325 to $222 and Wells Fargo reducing it to $120.
• The company reported disappointing earnings with an EPS of $3.23, missing analysts' expectations of $8.23, alongside a negative net margin of 32.18% for the quarter.

Shares of Cable One, Inc. (NYSE:CABO - Get Free Report) fell 6.4% during mid-day trading on Monday . The stock traded as low as $125.49 and last traded at $124.45. 69,198 shares were traded during mid-day trading, a decline of 64% from the average session volume of 190,836 shares. The stock had previously closed at $132.94.

Analysts Set New Price Targets

Several brokerages recently weighed in on CABO. BNP Paribas upgraded Cable One from a "strong sell" rating to a "hold" rating in a research note on Monday, June 16th. Raymond James Financial lowered Cable One from an "outperform" rating to a "market perform" rating in a research note on Friday, May 2nd. KeyCorp restated a "sector weight" rating on shares of Cable One in a research note on Friday, May 2nd. BNP Paribas Exane upgraded Cable One from an "underperform" rating to a "neutral" rating and set a $125.00 price target for the company in a research note on Monday, June 16th. Finally, Wells Fargo & Company cut their price target on Cable One from $210.00 to $120.00 and set an "underweight" rating for the company in a research note on Friday, August 1st. One equities research analyst has rated the stock with a sell rating and five have assigned a hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $279.25.

Cable One Trading Up 2.7%

The company has a 50 day simple moving average of $135.16 and a 200 day simple moving average of $203.65. The company has a debt-to-equity ratio of 2.16, a quick ratio of 0.37 and a current ratio of 0.37. The company has a market capitalization of $853.98 million, a PE ratio of -1.72 and a beta of 0.79.

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

Insider Activity at Cable One

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

Institutional Investors Weigh In On Cable One

A number of large investors have recently made changes to their positions in CABO. LPL Financial LLC grew its position in shares of Cable One by 19.7% in the fourth quarter. LPL Financial LLC now owns 2,154 shares of the company's stock valued at $780,000 after purchasing an additional 355 shares in the last quarter. Federated Hermes Inc. grew its position in shares of Cable One by 201.8% in the fourth quarter. Federated Hermes Inc. now owns 166 shares of the company's stock valued at $60,000 after purchasing an additional 111 shares in the last quarter. Raymond James Financial Inc. purchased a new stake in shares of Cable One in the fourth quarter valued at approximately $28,129,000. Summit Investment Advisors Inc. grew its position in shares of Cable One by 6.7% in the fourth quarter. Summit Investment Advisors Inc. now owns 590 shares of the company's stock valued at $214,000 after purchasing an additional 37 shares in the last quarter. Finally, Mariner LLC purchased a new stake in shares of Cable One in the fourth quarter valued at approximately $224,000. 89.92% of the stock is currently owned by hedge funds and other 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.