Cable One Shares Drop 6.7% Following Analyst Downgrades

Shares of Cable One, Inc. (NYSE:CABO) experienced a significant decline of 6.7% on Wednesday, trading as low as $97.53 before closing at $97.4250. The trading volume for the day reached 50,705 shares, a stark decrease of 70% compared to the average session volume of 168,115 shares. This drop follows a previous closing price of $104.46.

Analysts have recently reassessed their outlook on Cable One, contributing to the stock’s decline. On October 8, 2023, Weiss Ratings reaffirmed a “sell (d-)” rating for the company. Subsequently, on November 7, 2023, Wells Fargo & Company revised their price target from $120.00 to $107.00, designating an “underweight” rating. Additionally, JPMorgan Chase & Co. lowered their price objective from $175.00 to $145.00, assigning a “neutral” rating in a note issued on November 12, 2023. Currently, five analysts have rated the stock with a Hold designation, while two have issued Sell ratings, resulting in an average rating of “Reduce” with a price target of $256.75, according to MarketBeat.com.

Recent Earnings Report Highlights Challenges

Cable One’s latest earnings report, released on November 6, 2023, revealed that the company generated earnings of $5.17 per share for the quarter. This figure fell short of the consensus estimate of $9.25 by a notable $4.08. The company also reported a negative net margin of 29.78%, although it achieved a positive return on equity of 7.96%. Revenue for the quarter was reported at $376.01 million, slightly below analyst estimates of $378.96 million. Analysts predict that Cable One, Inc. will post earnings of $32.08 per share for the current fiscal year.

Institutional Investors Adjust Their Positions

A number of institutional investors have altered their stakes in Cable One recently. EverSource Wealth Advisors LLC increased its holdings by 180% during the third quarter, acquiring an additional 90 shares to hold 140 shares valued at approximately $25,000. Similarly, Quarry LP boosted its stake by an impressive 1,011.1%, now owning 200 shares valued at $35,000 after adding 182 shares. Parallel Advisors LLC also significantly increased its stake by 2,288.9%, acquiring 206 additional shares for a total of 215 shares valued at approximately $38,000. Overall, institutional investors and hedge funds own 89.92% of Cable One’s stock.

Cable One, Inc. provides a range of data, video, and voice services across the United States. The company specializes in residential data services, enhancing home Wi-Fi signals, and offers diverse video services, including a cloud-based DVR feature. As the company navigates these recent challenges, analysts and investors alike will closely monitor its performance in the coming quarters.