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Wallace R. Weitz, a director at Cable One, Inc. (NYSE:CABO), has made significant purchases of the company’s common stock, according to a recent SEC filing. The timing appears notable as the stock trades near its 52-week low, having declined about 29% year-to-date according to InvestingPro data. On March 4 and 5, Weitz acquired a total of 4,000 shares, amounting to approximately $982,020. The transactions were executed at prices ranging from $244.02 to $246.00 per share. Following these acquisitions, Weitz now holds 8,584 shares of Cable One directly. The company, currently valued at $1.42 billion, has maintained dividend payments for 11 consecutive years and shows strong free cash flow yield. InvestingPro analysis suggests the stock is currently undervalued, with 8 additional key insights available to subscribers.
In other recent news, Cable One reported disappointing financial results for the fourth quarter of 2024. The company experienced a significant earnings miss, with earnings per share at a negative $18.71 compared to the forecasted $9.38. Revenue also fell short, coming in at $387.2 million against expectations of $388.8 million, marking a 6% year-over-year decline. Despite these results, Cable One managed to reduce its capital expenditures significantly from $115.6 million in Q4 2023 to $71.9 million in Q4 2024.
In response to these financial outcomes, TD Cowen and KeyBanc Capital Markets adjusted their price targets for Cable One. TD Cowen lowered its target from $465 to $448, maintaining a Hold rating, while KeyBanc reduced its target from $825 to $650, keeping an Overweight rating. Both firms cited the company’s mixed financial performance and challenges in stabilizing revenue from broadband services as reasons for the adjustments.
The company also reported a decline of 4,800 high-speed data subscribers and a 7% decrease in EBITDA year-over-year. Despite the challenges, Cable One’s management remains optimistic about broadband revenue growth in 2025, although competition in the market continues to pose a significant challenge. Analysts at KeyBanc highlighted the company’s low market penetration and ability to generate cash as reasons for their continued endorsement, although they noted that visible improvements in performance metrics are necessary for the stock to gain momentum.
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