On Friday, Martin Capital Partners, LLC disclosed it exited its position in Comcast (CMCSA 0.61%), selling 162,125 shares in an estimated $5.8 million transaction.
What happened
According to a filing submitted to the U.S. Securities and Exchange Commission on Friday, Martin Capital Partners sold all its 162,125 shares of Comcast in the third quarter, representing an estimated transaction value of $5.8 million based on average prices in the quarter.
What else to know
The fund fully exited its Comcast position, which was 2.3% of assets under management in the prior quarter.
Top holdings after the filing:
- AMGN: $8.5 million (3.3% of AUM)
- CME: $8.4 million (3.3% of AUM)
- CFR: $8.4 million (3.2% of AUM)
- ASML: $8.3 million (3.2% of AUM)
- MSFT: $8.2 million (3.2% of AUM)
As of Monday morning, Comcast shares were priced at $30.63, down 24% over the past year and underperforming the S&P 500 by about 40 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $124.2 billion |
| Net income (TTM) | $22.9 billion |
| Dividend yield | 4.2% |
| Price (as of Friday) | $30.90 |
Company snapshot
- Comcast offers broadband, video, voice, wireless, advertising, television and streaming platforms, film and TV studio production, and operates theme parks across the US, Europe, and Asia.
- The company generates revenue through subscription-based cable and broadband services, advertising, content licensing, and theme park admissions.
- Primary customers include residential and business subscribers, advertisers, content consumers, and theme park visitors in North America, Europe, and Asia.
Comcast is a leading global media and technology company with diversified operations spanning cable communications, media, studios, and theme parks. Leveraging its scale and integrated platform, it delivers content and connectivity services to millions of customers worldwide. The company has a broad portfolio spanning cable communications, media, studios, and theme parks.
Foolish take
Martin Capital Partners’ decision to sell its entire $5.8 million Comcast stake might reflect shifting sentiment after a challenging stretch for the media and broadband giant. Comcast shares have tumbled roughly 18% this year, well underperforming the S&P’s nearly 15% gain. The stock’s decline has stemmed from investor concerns about broadband subscriber losses and a slow-growth media environment—even as the company’s latest results tell a more nuanced story.
In the second quarter, Comcast posted $30.3 billion in revenue, up 2.1% year over year, while adjusted EPS rose 3% to $1.25 and free cash flow surged to $4.5 billion. CEO Brian Roberts highlighted “solid financial results” and record wireless momentum, noting 378,000 net wireless line additions, the company’s best quarter on record. Its theme park segment grew 19%, buoyed by the opening of Epic Universe in Orlando. Meanwhile, Peacock revenue jumped 18%, narrowing its losses significantly. Nevertheless, the firm reported that its total customer relationships for connectivity and platforms fell by 349,000 to 51.2 million—largely driven by losses in domestic broadband customers.
For long-term holders, execution on broadband and sustained cash generation—not short-term exits like Martin’s—will determine whether the company can stage a true turnaround.
Glossary
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
13F reportable assets: Securities that institutional investment managers must disclose quarterly to the U.S. Securities and Exchange Commission (SEC) on Form 13F.
Liquidated: Sold off an entire investment position, converting it into cash.
Position: The amount of a particular security or asset held by an investor or fund.
Quarter: A three-month period used by companies for financial reporting and performance measurement.
Dividend yield: A financial ratio showing how much a company pays in dividends relative to its share price.
Subscription-based services: Services where customers pay recurring fees for ongoing access, such as cable or streaming.
Content licensing: Allowing others to use media or intellectual property in exchange for a fee.
Theme park admissions: Revenue generated from ticket sales to enter and use a company's amusement parks.
TTM: The 12-month period ending with the most recent quarterly report.
