Is Comcast Corporation (CMCSA) A Good Stock To Buy?

Let’s now take a brief look at Comcast Corporation (NASDAQ:CMCSA)’s high-speed Internet services, which have seen increased customer demand in the past several years. In fact, the number of high-speed Internet customers totaled 23.33 million in 2015, up from 21.96 million in 2014 and 20.69 million in 2013. Investment firm Lakewood Capital notes that “consumers will increasingly view fast internet speeds as a basic necessity, and Comcast offers the highest speed product across nearly its entire footprint. Across roughly half of its markets, Comcast competes against much slower legacy DSL offerings, and in 35% of its markets, it competes against a hybrid fiber / copper product, which becomes less competitive at faster internet speeds. The remaining 15% of the footprint has a fiber alternative that is generally comparable in quality and speed.”

On a final note, Anthony Bozza’s Lakewood Capital mentioned in its investor letter that “As we look out to 2018, we estimate Comcast will generate roughly $5 per share of free cash flow. Given the high-quality nature of this cash flow and the attractive growth outlook, we believe that a 17x multiple is reasonable, resulting in a target value of $87 per share (including dividends) and a total return over two years of nearly 60% from the current price.”

With this in mind, let’s take a look at the fresh action regarding Comcast Corporation (NASDAQ:CMCSA).

What does the smart money think about Comcast Corporation (NASDAQ:CMCSA)?

At Q4’s end, a total of 83 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 4% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Lansdowne Partners, managed by Alex Snow, holds the largest position in Comcast Corporation (NASDAQ:CMCSA). Lansdowne Partners has a $1.66 billion position in the stock, comprising 11.4% of its 13F portfolio. Coming in second is First Eagle Investment Management, which holds a $1.36 billion position; the fund has 3.4% of its 13F portfolio invested in the stock. Some other professional money managers that are bullish encompass Ken Fisher’s Fisher Asset Management, John Armitage’s Egerton Capital Limited and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.