Insider Buying

Insider Buying Report: Cable One Inc (CABO:US)

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Cable One Inc
CABO:US
12 months:
-8%
Activity:
Bullish
Pattern:
Large purchases from CFO
News:
Solid Q1 results
Cable One Inc
CABO:US
12 months:
-8%
Activity:
Bullish
Pattern:
Large purchases from CFO
News:
Solid Q1 results

CFO purchases can be very informative insider transactions. CFOs tend to have a strong read on their firms’ financials and some studies have found that these insiders earn higher profits following their purchases of company shares than CEOs.

In this report, we are going to highlight some large CFO purchases at Cable One Inc (CABO:US). Cable One is a US broadband communications provider that serves more than 1.1 million residential and business customers in 24 states through its Sparklight and Clearwave brands. The company is listed on the New York Stock Exchange and currently has a market capitalization of $10.2 billion.

Cable One Inc: Insider Buying

Our insider transaction data shows that Cable One’s CFO Steven Cochran has purchased CABO stock on two occasions recently. On 14 May, the insider bought 200 shares at a price of $1,745 per share, spending $349,000 on the stock. Then, on 17 May, he added another 400 shares at a price of $1,716 per share, spending $686,500 on the stock. In total, the insider spent about $1.04 million on CABO stock.

Insider Confidence

This insider buying activity stands out for a couple of reasons. Firstly, Cochran’s trades are substantial in size. Our data shows that they have increased the size of his holding by 29%. This suggests he is very confident the stock is set to move higher.

Secondly, Cochran has timed purchases well in the recent past. Our data shows that the insider picked up 300 shares in March last year, when the stock was trading near $1,200. Since then, it has risen to near $1,700.

Solid Q1 Results

Cable One recently posted a solid set of first-quarter results. For the quarter, total revenue was $341.3 million compared to $321.2 million in the first quarter of 2020, an increase of 6.2%. Meanwhile, adjusted EBITDA was $180.4 million, 14.4% higher than the figure of $157.7 million posted a year earlier. At the end of the period, the group had had $1.5 billion of cash and cash equivalents on hand compared to $574.9 million at the end of 2020.

On the earnings conference call, the company said that performance in April had continued to be strong.

“The same things that have been in play since mid-March, April of last year are continuing to drive growth. We have people being drawn to us for needs. They need a fast network. They need a network with a lot of throughput. They need a network that is reliable, and they need people that take care of them in a way that feels like they're neighbors. And our growth is, so far, not slowing down,” said Chair, President, and CEO Julia Lauris.

In light of the recent performance, we see the insider buying here as bullish. It suggests that the CFO expects the stock to rise.

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