In a year where cable stocks have been hammered by fears that broadband subscriber growth has hit a wall, Comcast said it will double its share repurchase authorization to $20 billion, effective Sept. 13.
Comcast has already repurchased about $9 billion of its own stock. In January, the company raised its share repurchase authorization to $10 billion.
Comcast shares were up slightly (0.7%) on Sept. 14, rising 23 cents each to $33.69 per share in early trading. So far this year, Comcast shares are down about 32% ($15.78 per share).
Other cable stocks have been hit even harder as investors grapple with the slowdown in broadband subscribers that has plagued the sector. As a whole, cable distribution stocks are down about 40% this year, with Cable One down 39.6%, Charter Communications down 41.6% and Altice USA down 42.7%. ■
Mike Farrell is senior content producer, finance for Multichannel News/B+C, covering finance, operations and M&A at cable operators and networks across the industry. He joined Multichannel News in September 1998 and has written about major deals and top players in the business ever since. He also writes the On The Money blog, offering deeper dives into a wide variety of topics including, retransmission consent, regional sports networks,and streaming video. In 2015 he won the Jesse H. Neal Award for Best Profile, an in-depth look at the Syfy Network’s Sharknado franchise and its impact on the industry.
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