Comcast (NASDAQ:CMCSA) Stock Price Up 7.1% Following Earnings Beat

Key Points

• Shares rose 7.1% after Comcast beat expectations, reporting Q EPS of $0.79 versus $0.73 estimated and revenue of $31.46 billion versus $30.42 billion, a 5.3% year-over-year increase.
• Comcast declared a quarterly dividend of $0.33 (annualized $1.32), representing a 4.2% yield and a payout ratio of about 24.6%.
• Analyst coverage is mixed with an average rating of "Hold" and a $34.81 average price target; the stock trades at a P/E of 5.89 and a market cap of about $114 billion, while CEO Michael Cavanagh recently sold 57,947 shares.

Comcast Corporation (NASDAQ:CMCSA - Get Free Report) shares shot up 7.1% during trading on Thursday following a stronger than expected earnings report. The company traded as high as $31.62 and last traded at $31.4530. 9,770,617 shares traded hands during mid-day trading, a decline of 70% from the average session volume of 32,693,549 shares. The stock had previously closed at $29.37.

The cable giant reported $0.79 earnings per share for the quarter, beating analysts' consensus estimates of $0.73 by $0.06. Comcast had a net margin of 16.17% and a return on equity of 16.86%. The business had revenue of $31.46 billion during the quarter, compared to analyst estimates of $30.42 billion. During the same period in the previous year, the business earned $1.09 EPS. Comcast's revenue was up 5.3% compared to the same quarter last year.

Comcast Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 22nd. Stockholders of record on Wednesday, April 1st were given a $0.33 dividend. The ex-dividend date was Wednesday, April 1st. This represents a $1.32 annualized dividend and a dividend yield of 4.2%. Comcast's payout ratio is 24.58%.

Analyst Ratings Changes

A number of analysts recently issued reports on CMCSA shares. BNP Paribas Exane dropped their price objective on Comcast from $26.00 to $25.00 and set an "underperform" rating on the stock in a report on Wednesday, April 8th. Bank of America upgraded Comcast from a "neutral" rating to a "buy" rating and upped their price target for the company from $31.00 to $37.00 in a research report on Monday, January 12th. Pivotal Research downgraded shares of Comcast from a "strong-buy" rating to a "hold" rating in a report on Friday, January 30th. Arete Research set a $23.00 price objective on shares of Comcast in a research note on Tuesday, January 6th. Finally, Morgan Stanley began coverage on shares of Comcast in a report on Thursday, April 16th. They set an "equal weight" rating and a $31.00 target price on the stock. Ten analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $34.81.

Insiders Place Their Bets

In other Comcast news, CEO Michael J. Cavanagh sold 57,947 shares of the firm's stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $32.66, for a total value of $1,892,549.02. Following the sale, the chief executive officer owned 622,336 shares of the company's stock, valued at $20,325,493.76. This trade represents a 8.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 1.32% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Comcast

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Lakeshore Capital Group Inc. lifted its holdings in shares of Comcast by 2.6% during the 3rd quarter. Lakeshore Capital Group Inc. now owns 13,636 shares of the cable giant's stock worth $428,000 after acquiring an additional 343 shares during the last quarter. Lowe Brockenbrough & Co. Inc. increased its stake in Comcast by 4.9% in the fourth quarter. Lowe Brockenbrough & Co. Inc. now owns 7,532 shares of the cable giant's stock valued at $225,000 after acquiring an additional 352 shares during the last quarter. Cora Capital Advisors LLC raised its position in Comcast by 3.4% during the fourth quarter. Cora Capital Advisors LLC now owns 11,013 shares of the cable giant's stock valued at $329,000 after purchasing an additional 362 shares in the last quarter. Hengehold Capital Management LLC lifted its stake in Comcast by 0.5% during the third quarter. Hengehold Capital Management LLC now owns 82,778 shares of the cable giant's stock worth $2,601,000 after purchasing an additional 372 shares during the last quarter. Finally, Commonwealth Financial Services LLC boosted its holdings in shares of Comcast by 4.6% in the 3rd quarter. Commonwealth Financial Services LLC now owns 8,429 shares of the cable giant's stock worth $265,000 after purchasing an additional 372 shares in the last quarter. Hedge funds and other institutional investors own 84.32% of the company's stock.

Comcast Price Performance

The stock has a market capitalization of $114.06 billion, a P/E ratio of 5.89, a price-to-earnings-growth ratio of 2.41 and a beta of 0.80. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.88 and a current ratio of 0.88. The firm has a 50-day moving average price of $29.82 and a 200 day moving average price of $29.09.

Comcast Company Profile

Comcast Corporation NASDAQ: CMCSA is a diversified global media and technology company headquartered in Philadelphia, Pennsylvania. Its principal operations are organized around Comcast Cable, which provides broadband internet, video, voice and wireless services to residential and business customers in the United States under the Xfinity and Comcast Business brands, and NBCUniversal, a media and entertainment group that develops, produces and distributes content across broadcast and cable networks, film, and streaming platforms.

NBCUniversal's assets include the NBC broadcast network, a portfolio of cable channels, Universal Pictures and other film and television production businesses, and the Peacock streaming service.

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