Patrick Drahi, a director and significant shareholder of Altice USA, Inc. (NYSE:ATUS), has offloaded a substantial portion of his holdings in the company. According to a recent SEC filing, Drahi sold a total of 805,227 shares of Class A common stock on November 11, 2024. The shares were sold at prices ranging from $23.3164 to $25.6836, amounting to a total transaction value of approximately $19.7 million.
Following these transactions, Drahi's remaining direct ownership stands at 30,003,501 shares. The sales were conducted through Next (LON:NXT) Alt S.a.r.l., Drahi's personal holding company, which holds a significant stake in Altice USA. The transactions were part of a series of strategic moves involving capped call transactions, as detailed in the footnotes of the filing.
The sale comes amidst a backdrop of complex financial arrangements involving Next Alt and a financial institution, as described in the filing. This includes the automatic exercise of capped call transactions, which are set to expire over a 42-day period starting October 25, 2024.
In other recent news, Altice-USA shared its Q3 2024 performance, revealing a mix of positive and negative financial indicators. The company reported strong subscriber growth in its fiber and mobile segments and set ambitious near-term targets. These include significant increases in mobile and fiber subscriber additions, a reduction in capital expenditures for 2025, and an aim to achieve EBITDA margins around 40%. Despite a decline in total and residential revenue, Altice USA saw an increase in mobile services revenue. The company reported Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million. TD Cowen adjusted its stance on Altice-USA shares, reducing the price target to $3.50 from $6.00, but continued to recommend a Buy rating. The firm's analysis indicates that the new targets set by Altice-USA appear to be within reach, acknowledging the company's noticeable progress in key areas. However, the reduced capex forecast is expected to lead to a slower pace in the rollout of fiber-to-the-home infrastructure. Despite challenges, Altice USA continues to focus on operational excellence and market strategy evolution, aiming to continue its progress in the telecommunications market.
InvestingPro Insights
In light of Patrick Drahi's recent stock sale, it's crucial to examine Altice USA's current financial position and market performance. According to InvestingPro data, Altice USA's market capitalization stands at $1.26 billion, reflecting the company's current valuation in the market.
Despite the recent insider sale, Altice USA has shown strong short-term performance. InvestingPro data reveals a 13.88% price return over the past month and an impressive 64.12% return over the last three months. This positive momentum is further supported by an InvestingPro Tip indicating a "Strong return over the last three months."
However, investors should note that Altice USA's financial health presents a mixed picture. An InvestingPro Tip highlights that "Short term obligations exceed liquid assets," which could potentially impact the company's financial flexibility. Additionally, the company was "Not profitable over the last twelve months," although analysts predict profitability for the current year.
It's worth noting that Altice USA's revenue for the last twelve months as of Q3 2024 was $9.02 billion, with a revenue growth of -3.05% during the same period. This decline in revenue aligns with the challenging environment in which Drahi's stock sale occurred.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 7 more InvestingPro Tips available for Altice USA, providing a deeper understanding of the company's financial position and market outlook.
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