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Why Did Cable ONE’s Shares Just Fall?

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Cable ONE’s early 2017 dip

Cable ONE’s (CABO) shares fell 8.5% during the week ended January 6, 2017. Northwest Broadcasting channels will no longer be available on Cable ONE as the retransmission consent deal between the two companies failed to go through.

A research report from Zacks stated: “This will affect Northwest affiliates in Idaho Falls, Pocatello, and Lewiston, ID, and Clarksdale, Winona, Yazoo, Grenada and Cleveland, MS. Northwest Broadcasting operates the Big Four broadcast networks in Grenada and Cleveland, namely WABG (ABC), WABG2 (FOX), WNBD (NBC), and WXVT (CBS).”

Northwest Broadcasting reportedly wanted a hike of almost 70%, as compared to the terms of its earlier contract with Cable ONE.

Specifically, Cable ONE’s shares fell 3.3% on January 5, 2017, driven by an increase in the volume of shares traded. Over 123,000 shares of Cable ONE were traded on January 5, 2017, as compared to the average volume of ~41,000 shares traded during the past month.

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How do analysts view Cable ONE?

Of the three analysts covering Cable ONE, one has issued a “sell” recommendation, and two have issued “hold” recommendations on the stock.

The analyst stock price target for Cable ONE is $408.5, with a median target estimate of $408. This means that Cable ONE is trading at a premium of 28.4% to its median analyst price target.

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