Liberty Broadband (NASDAQ:LBRDA) Shares Gap Down - Should You Sell?

Key Points

• Liberty Broadband's shares gapped down significantly from a previous close of $86.64 to open at $76.50, currently trading at $71.17.
• Benchmark has reduced its price target for the stock from $130.00 to $115.00 while maintaining a "buy" rating.
• The company reported a net margin of 86.40% and a return on equity of 9.24%, exceeding earnings expectations for the prior quarter.
• Institutional investors have shown increased interest, with several firms raising their stakes in Liberty Broadband in recent quarters.

Liberty Broadband Corporation (NASDAQ:LBRDA - Get Free Report)'s share price gapped down before the market opened on Friday . The stock had previously closed at $86.64, but opened at $76.50. Liberty Broadband shares last traded at $71.17, with a volume of 42,023 shares changing hands.

Wall Street Analyst Weigh In

Separately, Benchmark decreased their price target on shares of Liberty Broadband from $130.00 to $115.00 and set a "buy" rating on the stock in a research report on Monday, March 31st.

Liberty Broadband Stock Down 18.6%

The company has a debt-to-equity ratio of 0.35, a current ratio of 1.39 and a quick ratio of 1.39. The firm has a market capitalization of $10.11 billion, a P/E ratio of 11.29 and a beta of 1.00. The company's 50-day simple moving average is $93.73 and its two-hundred day simple moving average is $85.42.

Liberty Broadband (NASDAQ:LBRDA - Get Free Report) last released its quarterly earnings results on Wednesday, May 7th. The company reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.20 by $0.67. Liberty Broadband had a net margin of 86.40% and a return on equity of 9.24%. The business had revenue of $266.00 million for the quarter, compared to the consensus estimate of $248.60 million.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. GAMMA Investing LLC increased its stake in shares of Liberty Broadband by 21.2% in the second quarter. GAMMA Investing LLC now owns 698 shares of the company's stock worth $68,000 after purchasing an additional 122 shares in the last quarter. American Century Companies Inc. increased its stake in shares of Liberty Broadband by 4.4% in the first quarter. American Century Companies Inc. now owns 3,188 shares of the company's stock worth $271,000 after purchasing an additional 135 shares in the last quarter. PAX Financial Group LLC increased its stake in shares of Liberty Broadband by 1.1% in the fourth quarter. PAX Financial Group LLC now owns 13,799 shares of the company's stock worth $1,026,000 after purchasing an additional 144 shares in the last quarter. Parallel Advisors LLC increased its stake in shares of Liberty Broadband by 10.8% in the second quarter. Parallel Advisors LLC now owns 1,798 shares of the company's stock worth $176,000 after purchasing an additional 175 shares in the last quarter. Finally, Inspire Investing LLC increased its stake in shares of Liberty Broadband by 5.1% in the first quarter. Inspire Investing LLC now owns 3,660 shares of the company's stock worth $311,000 after purchasing an additional 179 shares in the last quarter. 10.29% of the stock is currently owned by institutional investors.

Liberty Broadband Company Profile

Liberty Broadband Corporation engages in the communications businesses. The company's GCI Holdings segment provides data, wireless, video, voice, and managed services to residential customers, businesses, governmental entities, educational, and medical institutions in Alaska under the GCI brand. Its Charter segment offers subscription-based Internet and video services, and mobile and voice services; and state-of-the-art residential and business services, which includes Spectrum Internet, TV, mobile and voice for small and medium-sized companies; Spectrum Business provides a suite of broadband products and services for businesses and government application; Spectrum Enterprise offers customized fiber-based solutions; Spectrum Reach provides advertising and production for the modern media landscape.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.