LBRDA Lost 30% In A Month. Do You Buy Or Wait?
Liberty Broadband (LBRDA) stock is down 29.9% in 21 trading days. The stock looks fairly priced at the moment, though history suggests you may benefit from buying dips – but the benefit is likely to be small. Consider the following data:
- Size: A $8.5 Bil company with $1.1 Bil in revenue currently trading at $61.16.
- Fundamentals: Last 12 month revenue growth of 7.2% and operating margin of 12.1%.
- Liquidity: Has Debt to Equity ratio of 0.4 and Cash to Assets ratio of 0.0
- Valuation: Currently trading at P/E multiple of 7.9 and P/EBIT multiple of 6.2
- Has returned (median) 9.2% within a year following sharp dips since 2010. See LBRDA Dip Buy Analysis.
While we like to buy dips if the fundamentals check out – for LBRDA, see Buy or Sell LBRDA Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and LBRDA drops another 20-30% to $42.81 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience.
Below is a deep dive into Liberty Broadband (LBRDA) downturn resilience – specifically, its performance vs the market during past crises? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
Below are the details, but before that, as a quick background: LBRDA provides wireless, data, video, voice, and managed services, including subscription-based high-definition television and digital video recorder services.
2022 Inflation Shock
- LBRDA stock fell 63.0% from a high of $187.10 on 2 September 2021 to $69.29 on 16 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $100.28 on 1 July 2025 , and currently trades at $61.16
| LBRDA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -63.0% | -25.4% |
| Time to Full Recovery | Not Fully Recovered days | 464 days |
2020 Covid Pandemic
- LBRDA stock fell 36.6% from a high of $137.91 on 19 February 2020 to $87.38 on 20 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 4 August 2020
| LBRDA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -36.6% | -33.9% |
| Time to Full Recovery | 137 days | 148 days |
2018 Correction
- LBRDA stock fell 33.8% from a high of $103.12 on 14 August 2017 to $68.27 on 1 June 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 July 2019
| LBRDA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -33.8% | -19.8% |
| Time to Full Recovery | 395 days | 120 days |
Worried that LBRDA could fall much more? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.