CABO Should I Buy
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Cable One Inc (CABO) is not a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's financial performance is deteriorating, technical indicators are bearish, and analysts have downgraded the stock with a lower price target. There are no positive catalysts or trading signals to support a buy decision.
The technical indicators for CABO are bearish. The MACD histogram is negative and expanding downward, the RSI is neutral at 30.653, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with S1 at 89.795 and S2 at 82.5.
No significant positive catalysts identified. The appointment of a new CEO and equity awards are neutral developments with no immediate impact on the stock's performance.
The company reported a 6.1% year-over-year revenue decline in Q4 2025, a net income drop of 92.76%, and a significant EPS miss. Analysts have downgraded the stock to Underperform with a reduced price target of $80, citing challenging operating trends and headwinds in the cable sector. Additionally, the stock experienced a 4.13% post-market drop.
In Q4 2025, Cable One reported a revenue decline of 6.06% YoY to $363.74 million, a net income drop of 92.76% YoY to -$7.62 million, and an EPS decline of 92.78% YoY to -$1.35. Gross margin also fell by 1.71% YoY to 51.21%. These metrics indicate significant financial underperformance.
Analysts have downgraded the stock to Underperform from Neutral, with a reduced price target of $80 (down from $125). They cite bearish sentiment on the cable sector, declining broadband ARPU growth, and limited M&A opportunities as key reasons for the downgrade.
