AMC Networks Inc (AMCX): Should We Be Bearish on This Stock After Recent Insider Sales?

Page 2 of 2

Excluding the wireless spectrum licenses divestment, its adjusted EPS increased 13.3%. While the number of video customers decreased, Comcast had around 433,000 and 211,000 additions in high-speed Internet customers and voice customers, respectively. The total customer additions for Comcast were 583,000, to 51.9 million customers in Q1 2013. Chairman and CEO Brian Roberts feels quite positive about Comcast’s future, after the completion of the NBCUniversal acquisition during the quarter.

Income investors might like Cablevision the most with its highest dividend yield at 4%. However, the payout ratio is as high as 100%, meaning that the company pays all of its earnings in dividends. Comcast offers a lower dividend yield at 1.90%, however, it only pays out 27% of its earnings in dividends. AMC does not pay any dividends.

My Foolish take

AMC is not a good stock to accumulate at the moment because of its high valuation, selling of shares by the CEO, and a weak balance sheet. Among the three, I like Comcast the most with its low valuation, a reasonable dividend yield but conservative payout ratio, and strong operating performance.

The article Should We Be Bearish on This Stock After Recent Insider Sales? originally appeared on Fool.com and is written by Anh Hoang.

Anh HOANG has no position in any stocks mentioned. The Motley Fool recommends AMC Networks. Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2