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Comcast Corporation (CMCSA): Sound Shore Forecasts Upside Potential

Nina Zdinjak

An equity mutual fund, Sound Shore, recently released its Q1 2019 Investor, in which it has reported 11.88% and 11.91% quarterly return for its Sound Shore Fund Investor Class (SSHFX) and Institutional Class (SSHVX), respectively. You can track down a copy of its letter here. Among its performance, the fund also posted short comments on several stocks in its equity portfolio, including Comcast Corporation (NASDAQ:CMCSA).

"Media giant Comcast is another change beneficiary that performed well for the period, advancing 17%. We restarted our Comcast investment during the volatile fourth quarter of 2018 when it was attractively priced below 14 times earnings with an 8% free cash flow yield.While fierce media competition and the potential for cord-cutting are well known threats to Comcast, these same trends also turn out to be opportunities if managed well. For example, our due diligence concluded that many “over the top” rivals, in fact, need Comcast’s broadband service to supply content to their own customers. Symbiotically, Comcast’s NBC and Universal studios are delivering entertainment programing beyond its own cable system via over the top platforms. Comcast’s first quarter gain was well ahead of both the market and it’s lagging communication peers. Driven by fourth quarter earnings that confirmed broadband and cable subscriber growth, significant free cash, and copious dividends and buybacks, we see further upside potential."

[caption id="attachment_516074" align="aligncenter" width="750"] Comcast Corporation (CMCSA): Sound Shore Forecasts Upside Potential Copyright: jetcityimage / 123RF Stock Photo[/caption]

Comcast Corporation is a Philadelphia-based, telecommunications conglomerate. Year-to-date, the company's stock gained 25.54%, and on May 10th it had a closing price of $43.15. Its market cap is of $195.85 billion, and the stock is trading at P/E ratio of 16.35.

At the end of the fourth quarter, a total of 83 of the hedge funds tracked by Insider Monkey were long this stock, a change of -10% from one quarter earlier. By comparison, 97 hedge funds held shares or bullish call options in CMCSA a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

More specifically, Eagle Capital Management was the largest shareholder of Comcast Corporation (NASDAQ:CMCSA), with a stake worth $1121.5 million reported as of the end of September. Trailing Eagle Capital Management was Citadel Investment Group, which amassed a stake valued at $448.8 million. First Pacific Advisors LLC, Two Sigma Advisors, and AQR Capital Management were also very fond of the stock, giving the stock large weights in their portfolios.

CMCSA

Disclosure: None.

This article is originally published at Insider Monkey.