NASDAQ: CMCSA
Key Data Points
Comcast (CMCSA 1.10%), a broadband and wireless connectivity provider, closed Wednesday’s session at $30.32, up 1.98%. Trading volume reached 67.7 million shares, about 105% above its three-month average of 33 million shares.
Today's gains continued Comcast's upward trend from the past five days. Wednesday’s move followed activist-investor buzz as well as news from earlier in the week about its successful network expansion in Connecticut. Investors will be watching upcoming earnings for commentary on broadband growth and capital allocation.
How the markets moved today
The S&P 500 (SNPINDEX: ^GSPC) fell 1.15% to 6,722, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) dropped 1.81% to 22,694. Within Telecom Services, industry peers Charter Communications (CHTR 2.81%) slipped 0.77% and AT&T (T +0.63%) gained 1.20%.
What this means for investors
This week's uptick in Comcast's price may come as a relief to investors. The stock is down 21.86% year-on-year, in part due to concerns about falling broadband subscribers. One driver for the roughly 5% intraday jump was a CNBC report that unusual trading activity may indicate activist investor interest.
When-issued trading of Versant, Comcast's cable network spinoff, began on Monday. The new company's shares have been authorized but not yet issued. The shares performed well in initial trading, which likely helped to boost Comcast's price. Comcast also announced it had completed a network expansion in Litchfield County, Connecticut. The network aims to reach 22,000 new homes and businesses.
