Wallace R Weitz Takes a Bullish Stance: Acquires $982K In Cable One Stock

A notable insider purchase on March 5, was reported by Wallace R Weitz, Director at Cable One CABO, based on the most recent SEC filing.

What Happened: In a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission, it was disclosed that Weitz bought 4,000 shares of Cable One, amounting to a total of $982,020.

During Thursday’s morning session, Cable One shares up by 0.82%, currently priced at $256.0.

Delving into Cable One’s Background

Cable One Inc. is a telecommunications company that generates revenue from providing broadband, voice, and video services to both residential and business customers. From a product standpoint, the majority of revenue comes from data and video services, which are subscription-based and billed monthly. The company also offers Sparklight TV, an Internet Protocol Television (IPTV) service that enables customers using the Sparklight TV app to stream video channels from the cloud. Additionally, the company earns advertising revenue by selling airtime on its video channels, and it provides voice services over Internet protocols. Cable One Inc. owns its telecommunications infrastructure.

Understanding the Numbers: Cable One’s Finances

Negative Revenue Trend: Examining Cable One’s financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -5.97% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.

Insights into Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 74.21%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Cable One’s EPS reflects a decline, falling below the industry average with a current EPS of -18.71.

Debt Management: Cable One’s debt-to-equity ratio is below the industry average at 2.0, reflecting a lower dependency on debt financing and a more conservative financial approach.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: Cable One’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 98.42.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.97, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 6.73 reflects market recognition of Cable One’s value, positioning it as more highly valued compared to industry peers.

Market Capitalization Perspectives: The company’s market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Illuminating the Importance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Cable One’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.