Citigroup Cuts Comcast (NASDAQ:CMCSA) Price Target to $27.50

Comcast (NASDAQ:CMCSA) had its target price cut by Citigroup from $30.00 to $27.50 in a research report released on Thursday, Marketbeat Ratings reports. They currently have a buy rating on the cable giant’s stock.

CMCSA has been the subject of a number of other reports. Sanford C. Bernstein reiterated a “market perform” rating and issued a $28.00 price objective on shares of Comcast in a research report on Monday, July 13th. Weiss Ratings downgraded shares of Comcast from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday, July 28th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $31.00 target price on shares of Comcast in a research note on Friday, July 24th. Barclays set a $26.00 price target on shares of Comcast and gave the stock an “equal weight” rating in a research report on Friday, July 24th. Finally, Freedom Capital raised shares of Comcast to a “hold” rating in a research note on Friday, June 12th. Eleven analysts have rated the stock with a Buy rating, twelve have given a Hold rating and five have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $31.13.

Comcast Stock Down 1.0%

Shares of CMCSA opened at $21.91 on Thursday. The firm has a market capitalization of $77.75 billion, a price-to-earnings ratio of 7.09, a PEG ratio of 1.57 and a beta of 0.68. The company has a debt-to-equity ratio of 0.94, a quick ratio of 0.80 and a current ratio of 0.80. The business’s fifty day moving average price is $24.91 and its two-hundred day moving average price is $25.70. Comcast has a 52 week low of $21.28 and a 52 week high of $32.85.

Comcast (NASDAQ:CMCSA) last released its earnings results on Thursday, July 23rd. The cable giant reported $1.04 EPS for the quarter, beating the consensus estimate of $0.97 by $0.07. Comcast had a return on equity of 14.77% and a net margin of 8.97%.The company had revenue of $29.94 billion during the quarter, compared to analysts’ expectations of $29.24 billion. During the same period last year, the firm earned $1.25 EPS. The business’s revenue for the quarter was down 1.2% on a year-over-year basis. On average, analysts predict that Comcast will post 3.48 earnings per share for the current year.

Comcast Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Wednesday, October 7th will be issued a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a yield of 6.0%. The ex-dividend date is Wednesday, October 7th. Comcast’s dividend payout ratio is currently 42.72%.

Hedge Funds Weigh In On Comcast

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Norges Bank bought a new position in Comcast during the 4th quarter worth approximately $2,498,626,000. Capital World Investors increased its stake in Comcast by 20.8% in the fourth quarter. Capital World Investors now owns 140,343,399 shares of the cable giant’s stock valued at $4,194,929,000 after purchasing an additional 24,166,881 shares in the last quarter. Capital Research Global Investors raised its holdings in Comcast by 65.1% in the fourth quarter. Capital Research Global Investors now owns 55,664,933 shares of the cable giant’s stock worth $1,663,825,000 after purchasing an additional 21,958,603 shares during the period. Healthcare of Ontario Pension Plan Trust Fund raised its holdings in Comcast by 824.4% in the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 11,616,490 shares of the cable giant’s stock worth $333,509,000 after purchasing an additional 10,359,800 shares during the period. Finally, Nykredit A S bought a new position in shares of Comcast during the second quarter worth $185,237,000. Institutional investors own 84.32% of the company’s stock.

Comcast News Summary

Here are the key news stories impacting Comcast this week:

• Positive Sentiment: Comcast’s depressed valuation and cash flow remain potential supports for the stock. The company generated nearly $18 billion in free cash flow over the past year, while its low earnings multiple has prompted some investors to argue that the shares may be undervalued. Comcast stock could be undervalued article
• Positive Sentiment: Comcast’s FreeWheel advertising technology is developing tools to help connected-TV advertisers measure viewer attention and ad quality, which could support the company’s longer-term advertising prospects. Moffett Nathanson and Citi still maintain Buy ratings, despite reducing their price targets. Comcast advertising technology article
• Neutral Sentiment: Moffett Nathanson cut its price target from $52 to $43, and Citi reduced its target from $30 to $27.50, but both firms retained Buy ratings. The target reductions signal lower near-term expectations while indicating that analysts still see substantial recovery potential. Comcast price target changes
• Negative Sentiment: KeyBanc downgraded Comcast to Underweight and established an $18 price target, citing intensifying broadband competition from fiber providers such as AT&T and Verizon. The firm expects Comcast’s third-quarter broadband subscriber trends unlikely to improve year over year. KeyBanc Comcast downgrade
• Negative Sentiment: Analysts warn that Comcast may need to keep lowering broadband prices to defend its customer base, potentially pressuring revenue, margins and other key performance metrics. The concern has pushed the stock toward its lowest level in roughly 13 years. Comcast downgrade and price-target cuts

Comcast Company Profile

Comcast Corporation (NASDAQ:CMCSA) is a global media and technology company that provides broadband, wireless, video, voice and related services to residential and business customers. Through its connectivity businesses, Comcast offers internet access, mobile service, pay television, telephone service, and home security and automation products, primarily under the Xfinity brand in the United States.

Comcast also operates a broad portfolio of entertainment and media businesses. NBCUniversal includes the NBC and Telemundo broadcast networks, cable networks, film and television studios, the Peacock streaming service, and a collection of theme parks.