Unusual Options Trading Activity at Comcast (NASDAQ:CMCSA)

Comcast Corporation (NASDAQ:CMCSA) experienced a significant surge in options trading on Friday. Investors engaged in the purchase of 40,917 call options, representing a remarkable increase of about 124% over the usual volume of 18,235 call options seen in a typical day.

Comcast Stock Performance

During midday trading on Friday, Comcast's share price decreased slightly by 0.1%, trading at $37.42, down by $0.06. The trading volume for the day was 7,019,862 shares, contrasting with the average daily volume of 21,917,594 shares. Over the past year, Comcast stock has reached a low of $36.15 and a high of $47.11. The company's market capitalization stands at $143.17 billion, with a PE ratio of 10.06 and a price-to-earnings-growth ratio of 1.35. It has a beta of 1.01 and a debt-to-equity ratio of 1.14, along with a quick ratio and current ratio both at 0.72. The fifty-day moving average price is $39.42, while the two-hundred day moving average price is $40.14.

Recent Earnings Report

Comcast recently announced its earnings results on Thursday, October 31st. The company reported earnings per share (EPS) of $1.12 for the quarter, surpassing analysts' expectations of $1.06 by $0.06. Comcast's return on equity was reported at 19.81%, with a net profit margin of 11.92%. The revenue for the quarter totaled $32.07 billion, higher than the estimated $31.78 billion by analysts. Compared to the same quarter in the previous year, this reflects a 6.5% increase. Analysts predict that Comcast will achieve an EPS of 4.25 for the current year.

Insider Trading at Comcast

In insider news, Comcast President Michael J. Cavanagh sold 25,537 shares of company stock on November 26th, at an average price of $42.59, amounting to approximately $1.09 million. After the sale, he owns 534,849 shares valued around $22.78 million. This transaction represents a 4.56% reduction in his ownership. Additionally, CEO Brian L. Roberts sold 234,464 shares on the same day for an average price of $42.66, totaling around $10 million. Post-sale, his holdings stand at 6,669,928 shares valued at approximately $284.54 million, indicating a 3.40% decrease in his ownership. Corporate insiders collectively hold 1.26% of Comcast's shares.

Institutional Activity

Recent institutional trading indicates that hedge funds and other institutional investors have been active with Comcast shares. For instance, World Investment Advisors LLC increased its holdings by 904.0% during the third quarter, acquiring an additional 229,192 shares, now owning a total of 254,545 shares valued at $10.63 million. Similarly, Tidal Investments LLC raised its stake by 15.2%, now holding 171,440 shares worth $7.16 million after adding 22,684 shares. Other firms like Parnassus Investments LLC and Douglas Lane & Associates LLC also boosted their holdings. Overall, institutional investors control 84.32% of Comcast's stock.

Analyst Ratings and Forecasts

Several analysts have recently provided ratings on Comcast's stock. Benchmark has maintained a “buy” rating with a target price of $60.00. Seaport Res Ptn upgraded the rating from “hold” to “strong-buy.” Scotiabank increased its price target from $47.75 to $48.00 and also adjusted its rating to “outperform.” Evercore ISI has upgraded Comcast to a “strong-buy.” However, Loop Capital revised their target down from $54.00 to $53.00 while maintaining a “buy” rating. Currently, one analyst rates the stock as a sell, six as hold, ten as buy, and three as strong buy, leading to an overall average rating of “Moderate Buy” with a consensus target price of $47.33.

About Comcast

Comcast Corporation operates as a media and technology company globally. It runs through different segments, including Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks. The Residential Connectivity segment offers residential broadband, wireless services, video services, and advertising across its television networks.

Comcast, Options, Trading