WideOpenWest Inc. (WOW) looking to reclaim success with recent performance

WideOpenWest Inc. (NYSE: WOW) stock fell -0.78% on Friday to $18.98 against a previous-day closing price of $19.13. With 1.11 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.79 million shares. During the session, the Entertainment company that operates in wider Communication Services sector, reached to the highest price of $19.53 whereas the lowest price it dropped to was $18.86. The 52-week range on WOW shows that it touched its highest point at $23.92 and its lowest point at $15.96 during that stretch. It currently has a 1-year price target of $22.75. Beta for the stock currently stands at 1.73.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of WOW was up-trending over the past week, with a rise of 1.17%, but this was up by 4.40% over a month. Three-month performance surged to 0.48% while six-month performance rose 0.96%. The stock lost -15.76% in the past year, while it has lost -11.80% so far this year. A look at the trailing 12-month EPS for WOW yields -0.49 with Next year EPS estimates of 0.66. For the next quarter, that number is 0.07. This implies an EPS growth rate of 37.50% for this year and 94.97% for next year.

Float and Shares Shorts:

At present, 83.29 million WOW shares are outstanding with a float of 53.19 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.66 million, which was 3.03% higher than short shares on Jun 14, 2022. In addition to Ms. Teresa L. Elder as the firm’s CEO, Pres & Director, Mr. John S. Rego serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 86.04% of WOW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 30.06% of WOW, in contrast to 20.72% held by mutual funds. Shares owned by individuals account for 149.09%. As the largest shareholder in WOW with 8.33% of the stake, Nine Ten Capital Management LLC holds 7,316,382 shares worth 7,316,382. A second-largest stockholder of WOW, The Vanguard Group, Inc., holds 4,783,510 shares, controlling over 5.45% of the firm’s shares. Simcoe Capital Management LLC is the third largest shareholder in WOW, holding 4,343,789 shares or 4.95% stake. With a 1.78% stake in WOW, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 1,564,045 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 1.53% of WOW stock, is the second-largest Mutual Fund holder. It holds 1,338,643 shares valued at 24.38 million. Brown Advisory Small Cap Fundamen holds 1.47% of the stake in WOW, owning 1,287,425 shares worth 23.44 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, WOW reported revenue of $174.60M and operating income of $4.60M. Over the past year, revenue came in at $718.80M while operating income stood at $10.10M. It generated $5.70M net income for the quarter, which came to $766.60M over the last twelve months. The EBITDA in the recently reported quarter was $57.70M and diluted EPS was $0.07. EBITDA for the full year was $220.60M.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WOW since 8 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With WOW analysts setting a high price target of $30.00 and a low target of $19.00, the average target price over the next 12 months is $23.94. Based on these targets, WOW could surge 58.06% to reach the target high and rise by 0.11% to reach the target low. Reaching the average price target will result in a growth of 26.13% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. WOW will report FY 2022 earnings on 03/09/2023. Analysts have provided yearly estimates in a range of $0.48 being high and $0.24 being low. For WOW, this leads to a yearly average estimate of $0.33. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. WideOpenWest Inc. surprised analysts by -$0.04 when it reported $0.07 EPS against a consensus estimate of $0.11. The surprise factor in the prior quarter was -$3.14. Based on analyst estimates, the high estimate for the next quarter is $0.10 and the low estimate is $0.04. The average estimate for the next quarter is thus $0.07.

Summary of Insider Activity:

Insiders traded WOW stock several times over the past three months with 5 Buys and 7 Sells. In these transactions, 8,591 shares were bought while 88,835 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 54 over the past year. The total number of shares bought during that period was 300,781 while 490,715 shares were sold.

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