CABO

Stocks Added to Zacks Rank #5: Acadia Healthcare, Blackbaud, and Cable One have been added to the Zacks Rank #5 (Strong Sell) List due to significant downward revisions in their current year earnings estimates over the past 60 days.

Investment Recommendations: Zacks Investment Research has released a list of 7 elite stocks from its Zacks Rank #1 Strong Buys, which historically have outperformed the market with an average gain of +23.9% per year since 1988.

ETF Analysis: The SPDR S&P 600 Small Cap Value ETF (SLYV) has an implied analyst target price of $102.81, indicating a potential upside of 29.22% from its current trading price of $79.56.

Stock Performance Insights: Notable underlying holdings like Cable One Inc, MillerKnoll Inc, and Thryv Holdings Inc show significant upside potential according to analysts, raising questions about the validity of these targets amidst market conditions.

TV Streaming Growth: TV streaming in the U.S. increased to 43.5% of total viewing time in February, while cable and broadcast viewership declined to 23.2% and 21.2%, respectively, according to Nielsen's "The Gauge" report.

YouTube Dominance: YouTube led February's TV viewership with an 11.6% share, followed by Netflix at 8.2% and Disney at 4.2%, with significant streaming spikes noted during events like Super Bowl LIX.

Insider Buying Insight: The article highlights companies with recent insider buying, emphasizing that such purchases often indicate confidence in the company's future performance. Cable One Inc (CABO) is noted for a significant investment by Director Wallace R. Weitz.

Valuation and Dividend Metrics: Cable One Inc is recognized for its attractive valuation metrics, including a low price-to-book ratio of 0.7 and an annual dividend yield of 4.99%, which surpasses the average in the coverage universe, making it appealing to value-focused dividend investors.

Insider Buying Activity: Directors of companies, like Wallace R. Weitz from Cable One Inc, often buy shares when they believe the stock is undervalued or see positive developments, with Weitz recently purchasing $982K worth at an average cost of $245.50/share.

Stock Performance and Dividends: Cable One Inc's shares are currently trading at $264.78, showing a 4.1% increase, with a 52-week range between $239.29 and $470.87, and an annualized dividend of $11.8/share yielding approximately 4.7%.

Television & Radio Stocks Performance: Television and radio shares have shown relative strength, increasing by approximately 1.7%, with iHeartMedia leading the gains at 26.5% and Cable One rising by 4.4%.

Market Commentary Disclaimer: The opinions expressed in the article are those of the author and do not necessarily represent the views of Nasdaq, Inc.

Macerich Insider Buying: CEO Jackson Hsieh purchased 56,000 shares of Macerich at $17.75 each, totaling nearly $1 million, following a previous purchase of $2 million worth of shares at a lower price within the last year.

Cable One Insider Buying: Director Wallace R. Weitz bought 4,000 shares of Cable One for approximately $982,020, with a notable increase in share value observed on the trading day.

Analyst's Price Forecast: JP Morgan analyst Sebastiano C Petti has reduced the price target for Cable One, Inc. (CABO) from $420 to $325, maintaining a Neutral rating due to increased fiber competition and challenges in fixed wireless access impacting broadband subscriber growth.

Financial Projections: For 2025, Petti predicts a decline in broadband net adds to +5k and a 3% decrease in EBITDA to $820 million, while also expecting total revenue to fall slightly by 0.8% to $1.540 billion, with margins decreasing by 80 basis points year-over-year.

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Analyst Ratings on Cable ONE and TPG Telecom: Analysts have given neutral ratings to both Cable ONE and TPG Telecom Limited, indicating a lack of strong bullish or bearish sentiment towards these stocks. Cable ONE has a Hold rating with a price target of $448.00, while TPG Telecom also holds a Hold rating with a price target of A$4.80.

Stock Performance Insights: Cable ONE's shares are currently near their 52-week low at $260.18, while TPG Telecom's shares closed at its 52-week low of $2.95, reflecting challenges in their respective markets as indicated by the analysts' reports.

Analyst Rating: KeyBanc analyst Brandon Nispel has maintained a Buy rating on Cable ONE (CABO), despite the company having an analyst consensus of Moderate Sell and a price target of $380.00.

Financial Performance: Cable ONE reported a quarterly revenue of $393.56 million and a net profit of $44.22 million for the quarter ending September 30, showing a decline in revenue compared to $420.35 million from the previous year.

ETF Analysis: The SPDR S&P 600 Small Cap Value ETF (SLYV) has an implied analyst target price of $104.95, indicating a potential upside of 19.85% from its current trading price of $87.57.

Stock Performance Insights: Notable underlying holdings like MGP Ingredients, Cable One, and Photronics show significant upside potential based on analyst targets, raising questions about the validity of these optimistic projections.

Upcoming Ex-Dividend Dates: On February 18, 2025, Spectrum Brands Holdings Inc (SPB), Cable One Inc (CABO), and PriceSmart Inc (PSMT) will trade ex-dividend, with respective dividends of $0.47, $2.95, and $0.63 scheduled for payment on March 11, March 7, and February 28, 2025.

Market Impact and Dividend Yields: Following the ex-dividend date, SPB is expected to open 0.60% lower, CABO 1.03% lower, and PSMT 0.67% lower; estimated annualized yields are projected at 2.39% for SPB, 4.14% for CABO, and 1.34% for PSMT based on historical dividend stability.

Conference Call Announcement: Cable One, Inc. will host a conference call on February 27, 2025, at 5 p.m. ET to discuss its fourth quarter and full year 2024 results, with a press release issued after market close that day.

Company Overview: Cable One is a leading broadband provider serving over 1 million customers across 24 states, focusing on innovation, reliability, and customer experience while aiming to bridge the digital divide.

Oversold Stocks Opportunity: The communication services sector has several oversold stocks, such as Trade Desk Inc, Lumen Technologies Inc, and Cable One Inc, which present potential buying opportunities due to their low RSI values indicating they may be undervalued.

Recent Performance Highlights: Despite reporting mixed financial results, these companies have seen significant stock price declines; for instance, Trade Desk's shares closed at $122.23 after a 1.7% gain, while Lumen Technologies fell to $4.66 after a 3.5% drop.

Dividend Announcement: Cable One, Inc. has declared a quarterly cash dividend of $2.95 per share, payable on March 7, 2025, to stockholders recorded by February 18, 2025.

Company Overview: Cable One is a major broadband provider serving over 1 million customers across 24 states, focusing on innovation, reliability, and enhancing connectivity for both residential and business clients.

Current Stock Performance: Cable One Inc (CABO) shares have entered oversold territory with an RSI of 28.2, indicating potential buying opportunities as the stock trades around $293 per share, near its 52-week low of $292.

Market Context: In comparison, the S&P 500 ETF has a higher RSI of 48.5, suggesting that CABO's recent heavy selling may be nearing exhaustion.

Stock Performance: Cable One Inc (CABO) shares have entered oversold territory with an RSI of 29.4, indicating potential buying opportunities for investors as the stock price has dropped to $342.25.

Dividend Yield: The recent annualized dividend of CABO is $11.8 per share, translating to a yield of 3.36% based on its current share price, making it attractive for dividend investors despite market volatility.

Cable One's Strategic Partnership Update: Cable One has amended its agreement with Mega Broadband Investments to allow for greater flexibility in acquiring full ownership, involving a $250 million cash payment and access to $100 million in new debt proceeds.

Company Overview: Cable One serves over 1 million customers across 24 states, focusing on delivering high-speed internet and connectivity solutions, while currently experiencing a year-to-date price performance decline of 34.16%.

Amended Partnership Agreement: Cable One has amended its partnership agreement with Mega Broadband Investments Holdings LLC (MBI) to gain more flexibility in acquiring full ownership of MBI, which it currently partially owns. The acquisition can now occur no earlier than October 1, 2026, unless Cable One opts for an earlier closing.

Financial Implications: As part of the agreement, Cable One paid $250 million to other MBI equity holders and arranged for $100 million in new debt, which will reduce the future purchase price for the remaining 55% stake in MBI. Estimated costs for this acquisition range between $410 million and $550 million, depending on MBI's performance and market conditions at the time of the transaction.