Cable One (NYSE:CABO) Trading Down 4.5% - Should You Sell?

Key Points

• Cable One's stock declined by 4.5%, closing at $151.19, with a significant drop in trading volume of 91% from the average.
• Analysts have issued mixed ratings, with BNP Paribas upgrading to "hold" while JPMorgan Chase cut the target price from $325 to $222, indicating caution among investors.
• The company reported a loss of $5.00 per share against analyst expectations, highlighting ongoing financial challenges as it continues to experience a negative net margin of 32.18%.

Cable One, Inc. (NYSE:CABO - Get Free Report) shares dropped 4.5% during trading on Wednesday . The stock traded as low as $152.84 and last traded at $151.19. Approximately 16,973 shares were traded during trading, a decline of 91% from the average daily volume of 185,290 shares. The stock had previously closed at $158.37.

Analysts Set New Price Targets

CABO has been the subject of a number of recent analyst reports. BNP Paribas raised Cable One from a "strong sell" rating to a "hold" rating in a research report on Monday, June 16th. JPMorgan Chase & Co. lowered their price target on Cable One from $325.00 to $222.00 and set a "neutral" rating on the stock in a report on Tuesday, May 6th. BNP Paribas Exane upgraded shares of Cable One from an "underperform" rating to a "neutral" rating and set a $125.00 target price for the company in a research report on Monday, June 16th. Finally, 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 one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and an average target price of $279.25.

Cable One Stock Performance

The company has a market capitalization of $874.58 million, a PE ratio of -1.75 and a beta of 0.81. The firm's 50-day simple moving average is $142.27 and its 200-day simple moving average is $190.92. The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 2.16.

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

Insiders Place Their Bets

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

Institutional Trading of Cable One

A number of institutional investors and hedge funds have recently made changes to their positions in CABO. Meeder Asset Management Inc. purchased a new position in shares of Cable One during the 1st quarter valued at approximately $30,000. Brooklyn Investment Group increased its holdings in Cable One by 5,233.3% in the 1st quarter. Brooklyn Investment Group now owns 160 shares of the company's stock worth $43,000 after acquiring an additional 157 shares in the last quarter. Signaturefd LLC raised its position in Cable One by 171.2% during the second quarter. Signaturefd LLC now owns 320 shares of the company's stock worth $43,000 after acquiring an additional 202 shares during the period. State of Wyoming purchased a new position in Cable One during the second quarter valued at $50,000. Finally, Farther Finance Advisors LLC grew its position in shares of Cable One by 1,435.7% in the first quarter. Farther Finance Advisors LLC now owns 215 shares of the company's stock valued at $58,000 after purchasing an additional 201 shares during the period. 89.92% of the stock is currently owned by hedge funds and other institutional investors.

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.

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