The surge occurred despite the lack of any significant news about the company. The stock traded near its Tuesday closing price of $20.41 in the morning hours but suddenly spiked in the early afternoon before it settled back down in the low $21 range.
More than 9.5 million shares had changed hands as of 3:39 p.m., nearly four times the daily average volume of 2,473,190.
TheStreet Ratings team rates CABLEVISION SYS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CABLEVISION SYS CORP (CVC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and revenue growth. However, as a counter to these strengths, we find that net income has been generally deteriorating over time."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 28.17% over the past year, a rise that has exceeded that of the S&P 500 Index. Although CVC had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- CABLEVISION SYS CORP has improved earnings per share by 18.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CABLEVISION SYS CORP increased its bottom line by earning $0.48 versus $0.25 in the prior year. This year, the market expects an improvement in earnings ($1.14 versus $0.48).
- The gross profit margin for CABLEVISION SYS CORP is rather high; currently it is at 51.57%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.39% trails the industry average.
- Net operating cash flow has slightly increased to $321.28 million or 5.78% when compared to the same quarter last year. Despite an increase in cash flow, CABLEVISION SYS CORP's cash flow growth rate is still lower than the industry average growth rate of 16.28%.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 75.7% when compared to the same quarter one year ago, falling from $294.60 million to $71.49 million.
- You can view the full analysis from the report here: CVC Ratings Report