What Happened?
Shares of telecommunications and media company Comcast (NASDAQ: CMCSA) fell 3% in the afternoon session after a series of analyst price target reductions and a recent ratings downgrade driven by concerns over its broadband business. On November 3, Barclays lowered its price target on the stock to $30 from $34, while Deutsche Bank also adjusted its target down to $40 from $44. These actions followed a ratings downgrade from Seaport Global, which moved the stock to "Neutral" from "Buy." Analysts voiced worries after the company warned it would likely face more customer losses in its broadband division due to rising competition from fiber and fixed wireless providers.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Comcast? Access our full analysis report here.
What Is The Market Telling Us
Comcast’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock dropped 12.5% on the news that the company reported weak fourth-quarter results, with key demand growth indicators, including broadband and video customers, continuing to decline year on year, with the former missing expectations. On the other hand, it was encouraging to see Comcast beat analysts' EPS expectations this quarter. Overall, this was a mixed yet weaker quarter.
Comcast is down 27.5% since the beginning of the year, and at $27.13 per share, it is trading 39.9% below its 52-week high of $45.14 from November 2024. Investors who bought $1,000 worth of Comcast’s shares 5 years ago would now be looking at an investment worth $636.44.
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