Liberty Broadband (NASDAQ:LBRDA) Trading Down 18.3% - Here's Why

Key Points

• Shares plunged 18.3% intraday to about $46.08 (from a prior close of $56.41), trading as low as $47.47 on unusually light volume (28,358 shares, down ~83% vs. average).
• Analyst sentiment is negative (Weiss Ratings reaffirmed a "sell (d)" and the average rating is "Sell"), and the company shows weak fundamentals with a quick and current ratio of 0.10 and a negative P/E of -2.30.
• Insider activity: Director J. David Wargo sold 2,232 shares at about $57.61 in February (an 82.6% reduction in his holdings); Liberty Broadband is primarily a holding company with a significant equity stake in Charter Communications.

Liberty Broadband Corporation (NASDAQ:LBRDA - Get Free Report) fell 18.3% during mid-day trading on Friday . The stock traded as low as $47.47 and last traded at $46.0760. 28,358 shares changed hands during mid-day trading, a decline of 83% from the average session volume of 165,566 shares. The stock had previously closed at $56.41.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Liberty Broadband in a research report on Friday, March 27th. One research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the company has an average rating of "Sell".

Liberty Broadband Price Performance

The company has a quick ratio of 0.10, a current ratio of 0.10 and a debt-to-equity ratio of 0.14. The stock's 50 day moving average price is $52.51 and its two-hundred day moving average price is $50.97. The stock has a market cap of $6.20 billion, a price-to-earnings ratio of -2.30 and a beta of 0.96.

Insider Buying and Selling

In other Liberty Broadband news, Director J David Wargo sold 2,232 shares of the stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $57.61, for a total transaction of $128,585.52. Following the sale, the director directly owned 471 shares of the company's stock, valued at approximately $27,134.31. This trade represents a 82.57% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 5.70% of the company's stock.

Institutional Investors Weigh In On Liberty Broadband

Hedge funds have recently bought and sold shares of the stock. Quent Capital LLC purchased a new position in shares of Liberty Broadband during the 3rd quarter valued at approximately $36,000. Franklin Resources Inc. grew its position in Liberty Broadband by 66.2% during the second quarter. Franklin Resources Inc. now owns 615 shares of the company's stock valued at $60,000 after buying an additional 245 shares during the period. Comerica Bank grew its position in Liberty Broadband by 104.2% during the fourth quarter. Comerica Bank now owns 1,027 shares of the company's stock valued at $50,000 after buying an additional 524 shares during the period. Federation des caisses Desjardins du Quebec increased its holdings in Liberty Broadband by 22.0% in the fourth quarter. Federation des caisses Desjardins du Quebec now owns 1,377 shares of the company's stock valued at $66,000 after buying an additional 248 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co increased its holdings in Liberty Broadband by 62.3% in the second quarter. CANADA LIFE ASSURANCE Co now owns 2,245 shares of the company's stock valued at $220,000 after buying an additional 862 shares in the last quarter. Hedge funds and other institutional investors own 10.29% of the company's stock.

About Liberty Broadband

Liberty Broadband Corporation is a holding company primarily focused on investments in broadband businesses, most notably a significant equity interest in Charter Communications, Inc As a shareholder of Charter's Class A common stock, Liberty Broadband benefits from the growth and operational performance of one of the largest cable and broadband providers in the United States. The company does not operate consumer services directly but instead seeks to enhance shareholder value through its strategic stake and board representation in Charter.

In addition to its Charter position, Liberty Broadband holds an ownership interest in GCI Liberty, Inc, a holding company with interests in an Alaskan telecommunications provider and other media assets.

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