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Broadcasting Stock Barred by Bear Note

Comcast's options are attractively priced at the moment

Deputy Editor
May 19, 2020 at 10:42 AM
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The shares of Comcast Corporation (NASDAQ:CMCSA) are down 1.1% to trade at $37.68 after a downgrade from Guggenheim to "neutral" from "buy." The analyst said it sees one of Comcast's primary units, NBCUniversal, as "particularly challenged" by the lasting effects of the pandemic on its theme park, filmed entertainment, and advertising businesses. 

Slow to rise on the charts since its two-year low of $31.70 on March 23, yesterdays gap higher gained on the 30-day moving average, which continues to act as support for today's pullback. Though the stock is still up 7.8% in the last week, it still sports a 15.3% year-to-date deficit. 

Most analysts were bullish on CMCSA coming into today, with 11 of the 18 in coverage sporting a "buy" or better, and the remaining seven giving it a tepid "hold" rating. Also, the 12-month consensus target price of $44.74 is a 17.5% premium to current levels. 

What's more, CMCSA's options are attractively priced at the moment. The stock's Schaeffer's Volatility Index (SVI) of 28% sits in the 12th percentile of its annual range, implying that near-term options traders are pricing in relatively low volatility expectations.

 

 

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