|Instrument:COMCAST CORP-CLASS A|
Comcast Corporation is a global media, entertainment, and technology company that provides its diverse products and services under well-known brands such as Xfinity, NBCUniversal, and Sky. Some of the company’s offerings include Broadband, Cable TV, Filmed Entertainment, Cable Networks, Cable Communications, and Theme Parks. Comcast is a leader in all its operating segments, and boasts over 50 million customers around the world, mainly in the US and Europe. The company was founded in 1963 by Ralph Roberts and is headquartered in Philadelphia, Pennsylvania, US.
Comcast is now a giant conglomerate with massive footprints across its triple-play segments of cable, phone, and internet. But its journey to the top was anything but smooth. The company started as a small cable operation in Mississippi under the name American Cable Systems. It quickly grew by acquiring other cable franchises in other states and moved to its current headquarters in the early 1970s. It was then that the current Comcast brand was adopted – a name that combined the words ‘communication’ and ‘broadcast’. After going public in 1972, Comcast was well capitalized and well placed to take advantage of opportunities that would arise in the 1980s and 1990s. In 1988, Comcast diversified into the cell phone business by acquiring the American Cellular Company; and in 1996, it launched @Home Network, a service that provided internet via cable modem. In the 21st century, Comcast has continued to pursue both organic and inorganic growth. Some of the company’s major acquisitions after 2000 include AT&T Broadband, DreamWorks Animation, and NBCUniversal.
Comcast Corp is listed on the Nasdaq, where its stock trades under the ticker symbol CMCSA. The stock is categorized in the Communication Services sector, under the Telecom Services industry.
CSA Stock History
Comcast went public on June 29th, 1972, with an IPO price of $7. The company has implemented several stock splits in its history, but only two have happened after the turn of the millennium: a 3-for-2 in February 2007, and a 2-for-1 in February 2017.
The CMCSA stock traded around the $10-handle throughout the first decade of the 21st century. It was only in late 2012 that it gathered steam and broke above $15. The CMCSA price chart shows an extended long-term rally that saw the Comcast Corp stock print its all-time high above $61 in September 2021. The CMCSA stock has since retraced and currently trades around the $40-handle as of July 2022.
When it comes to the Comcast Corp dividend per share, Comcast’s business has enjoyed steady and predictable growth over the years. This has allowed the company to offer sustainable dividends to its shareholders. The company boasts a healthy payout ratio of around 32% and has averaged a dividend yield of over 2% in recent years.
How to Trade Comcast Stock
Here are some of the factors to consider when trading CMCSA stock:
- Regulatory Concerns
Comcast operates in a heavily regulated industry. There are frequent changes to regulatory guidelines and ensuring compliance may significantly impact the company’s bottom line. The company is vulnerable to legislative changes in areas such as net neutrality as well as data privacy and security. Furthermore, Comcast offers its diverse services to the mass market, and there is an enormous threat of rate regulation for political reasons.
- Competition and New Product Rollout
Comcast is considered one of the major ‘big cable’ companies, but this does not shield it from rivals. The company faces stiff and diverse competition in all its operating areas. Some of its major competitors include AT&T, Verizon, DISH Network, Time Warner Cable, and Netflix. Competition is based on product offering, pricing, speeds, and network reliability.
Comcast also operates in a rapidly evolving industry, where new product rollout can be very definitive. This has been evident in categories such as business enterprise solutions, video streaming, and eye-control devices. A hit product is very positive for Comcast stock, whereas a miss or late-entry product could pressure the stock lower.
- Negative PR and Lawsuits
Comcast is a mass market company and has naturally attracted controversies. The company has, in recent years, received public criticism over its pricing of cable packages as well as its stance on net neutrality. Comcast has also routinely ranked poorly in terms of customer satisfaction. Additionally, the company has attracted lawsuits against its governance practices and misleading advertisements. Investors are wary of companies that attract negative publicity, with such headlines capable of triggering negative sentiment on the stock.
- Periodic Earnings Reports
The Comcast Corp fiscal year runs from January 1st to December 31st. The company releases periodic earnings reports to update investors on its business health and performance. Some of the metrics to watch out for include revenues, segment performance, subscriber count, dividend payout, and future guidance. Strong results can inspire higher Comcast Corp stock prices, whereas weak results can trigger lower prices.
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