Comcast Corporation $CMCSA Stock: Harbor Island Capital LLC Cuts Stake

Key Points

• Harbor Island Capital cut its Comcast stake by 19.7% in the third quarter, selling 108,501 shares and retaining 441,030 shares valued at approximately $9.6 million. Institutional investors collectively own 84.32% of the stock.
• Comcast reported third-quarter adjusted EPS of $1.07, above the $0.99 consensus, while revenue of $29.3 billion was roughly in line with expectations. However, revenue declined 6.1% year over year amid broadband and video subscriber losses.
• Comcast declared a quarterly dividend of $0.33 per share, equivalent to a 5.8% annualized yield, but investors face ongoing concerns including core connectivity weakness, a planned restructuring charge exceeding $1 billion, and uncertainty surrounding the NBCUniversal separation.

Harbor Island Capital LLC lowered its position in Comcast Corporation (NASDAQ:CMCSA - Free Report) by 19.7% in the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 441,030 shares of the cable giant's stock after selling 108,501 shares during the quarter. Comcast comprises 2.4% of Harbor Island Capital LLC's investment portfolio, making the stock its 12th largest holding. Harbor Island Capital LLC's holdings in Comcast were worth $9,597,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Allied Private Wealth LLC purchased a new stake in Comcast during the second quarter valued at about $26,000. Whipplewood Advisors LLC boosted its position in Comcast by 75.5% during the first quarter. Whipplewood Advisors LLC now owns 932 shares of the cable giant's stock worth $27,000 after purchasing an additional 401 shares during the period. Main Street Group LTD purchased a new position in shares of Comcast in the first quarter worth about $27,000. Thompson Investment Management Inc. purchased a new position in shares of Comcast in the second quarter worth about $29,000. Finally, Financial Freedom LLC raised its position in shares of Comcast by 72.8% in the first quarter. Financial Freedom LLC now owns 1,104 shares of the cable giant's stock valued at $32,000 after purchasing an additional 465 shares during the period. 84.32% of the stock is currently owned by institutional investors.

Trending Headlines about Comcast

Here are the key news stories impacting Comcast this week:

• Positive Sentiment: Comcast reported third-quarter adjusted earnings of $1.07 per share, above the roughly $0.99 analyst consensus, while revenue of $29.3 billion was broadly in line with expectations. Wireless growth, improved Peacock profitability and strong film performance helped offset weakness elsewhere. Comcast beats earnings expectations as media revenue offsets weakness in connectivity
• Positive Sentiment: Management said approximately 70% of wireless trial lines converted to paid accounts, indicating that the wireless business may be gaining traction as Comcast seeks to diversify beyond broadband. Peacock also reached profitability, supporting momentum ahead of the planned NBCUniversal spinoff. Comcast: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Comcast declared a quarterly dividend of $0.33 per share, or $1.32 annually, offering an approximately 5.8% yield based on the reported share price. The payout may appeal to income-oriented investors, although the yield also reflects broader concerns about the stock’s growth outlook. Comcast Declares Quarterly Dividend
• Neutral Sentiment: The proposed separation of NBCUniversal from Comcast’s broadband, pay-TV and wireless operations could unlock value by allowing each business to pursue a more focused strategy. However, execution and the final structure of the transaction remain important uncertainties. Comcast Co-CEO Brian Roberts Touts Staffers’ Energy and Excitement About Pending NBCUniversal Split
• Negative Sentiment: Domestic broadband and video subscriber losses continued, with satellite and other competitors intensifying pressure on Comcast’s core connectivity business. Revenue fell about 6% year over year, and adjusted earnings declined from the prior-year quarter despite the EPS beat. Comcast broadband losses deepen as competition pressures core business
• Negative Sentiment: Comcast expects a fourth-quarter restructuring charge exceeding $1 billion, including layoffs, as it overhauls its connectivity operations. Analysts including TD Cowen, Goldman Sachs and Citi lowered price targets, underscoring investor concern that broadband weakness may persist. Comcast Flags $1 Billion Q4 Charge for Layoffs and Restructuring

Comcast Stock Down 0.7%

CMCSA stock opened at $22.69 on Friday. The company has a quick ratio of 0.80, a current ratio of 0.82 and a debt-to-equity ratio of 0.91. The firm has a market capitalization of $80.52 billion, a PE ratio of 7.18, a PEG ratio of 1.63 and a beta of 0.68. Comcast Corporation has a twelve month low of $20.48 and a twelve month high of $32.85. The stock has a 50-day simple moving average of $23.80 and a two-hundred day simple moving average of $24.63.

Comcast (NASDAQ:CMCSA - Get Free Report) last announced its quarterly earnings results on Thursday, October 22nd. The cable giant reported $1.07 earnings per share for the quarter, beating the consensus estimate of $0.99 by $0.08. Comcast had a return on equity of 14.64% and a net margin of 9.20%. The firm had revenue of $29.30 billion for the quarter, compared to analysts' expectations of $29.22 billion. During the same period in the prior year, the business posted $1.12 earnings per share. The company's revenue was down 6.1% on a year-over-year basis. On average, equities analysts predict that Comcast Corporation will post 3.52 EPS for the current fiscal year.

Comcast Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 27th. Investors of record on Wednesday, January 6th will be paid a dividend of $0.33 per share. The ex-dividend date of this dividend is Wednesday, January 6th. This represents a $1.32 annualized dividend and a yield of 5.8%. Comcast's payout ratio is currently 42.72%.

Wall Street Analyst Weigh In

A number of brokerages recently commented on CMCSA. Deutsche Bank Aktiengesellschaft upgraded shares of Comcast from a "hold" rating to a "buy" rating and dropped their price target for the company from $34.00 to $32.00 in a research note on Tuesday, June 30th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $31.00 price objective on shares of Comcast in a report on Monday, October 19th. The Goldman Sachs Group reiterated a "neutral" rating and issued a $23.00 price objective on shares of Comcast in a research note on Thursday. BNP Paribas Exane lowered their target price on shares of Comcast from $25.00 to $22.00 and set an "underperform" rating on the stock in a report on Tuesday, July 14th. Finally, Wells Fargo & Company set a $23.00 target price on shares of Comcast and gave the company an "underweight" rating in a report on Friday, July 24th. Eleven analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat.com, Comcast has an average rating of "Hold" and an average target price of $30.58.

Comcast Company Profile

Comcast Corporation is a global media and communications company headquartered in Philadelphia, Pennsylvania. Founded in 1963 as American Cable Systems, the company grew through the expansion of cable television and broadband services and adopted the Comcast name in 1969.

Through its Connectivity & Platforms businesses, Comcast provides residential and business customers with broadband internet, video, voice, mobile and related services. Its Xfinity brand offers internet, television, streaming and wireless products in the United States, while Comcast Business serves commercial and enterprise customers with connectivity, communications and technology solutions.

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