Healthy Upside Potential: Comcast Corporation (CMCSA)

Comcast Corporation (NASDAQ: CMCSA) stock fell -3.37% on Friday to $32.70 against a previous-day closing price of $33.84. With 36.27 million shares changed hands, the volume of the stock remained heavier than its average volume of 23.8 million shares. During the session, the Entertainment company that operates in wider Communication Services sector, reached to the highest price of $34.08 whereas the lowest price it dropped to was $32.68. The 52-week range on CMCSA shows that it touched its highest point at $57.96 and its lowest point at $33.41 during that stretch. It currently has a 1-year price target of $47.56. With its current market cap of 142.14 billion, CMCSA has annualized dividend of $1.08 while the current yield stands at 3.30%. Beta for the stock currently stands at 0.92.

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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 CMCSA was down-trending over the past week, with a drop of -5.13%, but this was down by -13.08% over a month. Three-month performance dropped to -15.94% while six-month performance fell -30.75%. The stock lost -41.67% in the past year, while it has lost -35.03% so far this year. A look at the trailing 12-month EPS for CMCSA yields 3.06 with Next year EPS estimates of 3.86. For the next quarter, that number is 0.90. This implies an EPS growth rate of 33.50% for this year and 7.46% for next year. EPS is expected to grow by 10.15% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 11.30%.

Float and Shares Shorts:

At present, 4.46 billion CMCSA shares are outstanding with a float of 4.37 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 68.07 million, which was 1.52% higher than short shares on Jun 14, 2022. In addition to Mr. Brian L. Roberts as the firm’s Chairman, CEO & Pres, Mr. Michael J. Cavanagh serves as its Sr. EVP & CFO.

Institutional Ownership:

Through their ownership of 86.62% of CMCSA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 52.15% of CMCSA, in contrast to 33.07% held by mutual funds. Shares owned by individuals account for 0.83%. As the largest shareholder in CMCSA with 8.72% of the stake, The Vanguard Group, Inc. holds 384,028,342 shares worth 384,028,342. A second-largest stockholder of CMCSA, Capital Research & Management Co, holds 207,277,699 shares, controlling over 4.71% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in CMCSA, holding 194,750,273 shares or 4.42% stake. With a 3.01% stake in CMCSA, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 132,355,812 shares are owned by the mutual fund manager. The Washington Mutual Investors Fund, which owns about 2.52% of CMCSA stock, is the second-largest Mutual Fund holder. It holds 110,784,715 shares valued at 4.01 billion. Vanguard 500 Index Fund holds 2.27% of the stake in CMCSA, owning 99,772,933 shares worth 3.61 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CMCSA since 35 analysts follow the stock currently. There are 17 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 2 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 CMCSA analysts setting a high price target of $70.00 and a low target of $33.00, the average target price over the next 12 months is $47.37. Based on these targets, CMCSA could surge 114.07% to reach the target high and rise by 0.92% to reach the target low. Reaching the average price target will result in a growth of 44.86% 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. CMCSA will report FY 2022 earnings on 01/26/2023. Analysts have provided yearly estimates in a range of $3.97 being high and $3.08 being low. For CMCSA, this leads to a yearly average estimate of $3.57. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Comcast Corporation surprised analysts by $0.10 when it reported $1.01 EPS against a consensus estimate of $0.91. The surprise factor in the prior quarter was $0.06. Based on analyst estimates, the high estimate for the next quarter is $1.03 and the low estimate is $0.74. The average estimate for the next quarter is thus $0.90.

Dividends & Yield:

In terms of dividends, CMCSA has a current ratio of $1.08, which is $1.08 over the trailing 12-months, while a dividend of $0.83 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and CMCSA currently yields $3.18. In the past year, CMCSA’s dividend yield has been $3.18, but when looking at the stock over the past five years, its yield has been $1.95. Accordingly, CMCSA has a current buyback yield of $2.96. This was $2.96 for the TTM, and it was $3.15 for the past five years.

Summary of Insider Activity:

Insiders traded CMCSA stock several times over the past three months with 7 Buys and 1 Sells. In these transactions, 7,357 shares were bought while 1,351 shares were sold. The number of buy transactions has increased to 71 while that of sell transactions has risen to 48 over the past year. The total number of shares bought during that period was 2,208,755 while 1,374,407 shares were sold.

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