In a recent filing with the Securities and Exchange Commission, Altice USA, Inc. (NYSE:ATUS) reported significant stock sales by Next Alt S.a.r.l., a company indirectly owned and controlled by Patrick Drahi, who serves as a director of the company. On October 25, 2024, Next Alt sold a total of 805,227 shares of Altice USA's Class A common stock. The sales were executed at prices ranging from $23.3164 to $25.6836 per share, totaling approximately $19.7 million.
Following these transactions, Next Alt's direct ownership in Altice USA decreased to 38,860,998 shares. These sales are part of a broader financial strategy involving existing bilateral European capped call transactions, as detailed in the company's footnotes.
In other recent news, Altice USA has experienced significant developments in its financial performance. Following the release of the company's second-quarter financial results, Citi adjusted its outlook on Altice USA. The financial institution reduced the stock's price target to $2.50 from the previous $3.00 but maintained a Buy rating on the shares. Citi's positive stance emphasizes the potential for Altice USA to restructure its operations, improve its financial performance, and monetize non-core assets.
In terms of earnings, Altice USA reported Q2 2024 revenues of $2.2 billion and an adjusted EBITDA of $867 million, indicating year-over-year declines of 3.6% and 5.9% respectively. Despite these declines, the company saw an increase in fiber and mobile customers, although it reported a net loss of 51,000 broadband subscribers. The company's capital expenditures were down by 27% year-over-year to $348 million.
These are recent developments that reflect the company's ongoing efforts to enhance customer experience and operational efficiency. Altice USA is focusing on delivering better customer experiences and expanding its B2B offerings. Despite facing competitive pressures, the company maintains a commitment to financial discipline and a focus on profitability.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Altice USA's financial position and market performance. Despite the significant stock sales by Next Alt S.a.r.l., Altice USA has shown some positive market trends. According to InvestingPro Tips, the company has experienced a significant return over the last week, with a 1-week price total return of 11.4%. This short-term gain is complemented by a strong 3-month return of 43.5%, indicating growing investor confidence.
The company's valuation metrics present an interesting picture. With a market capitalization of $1.64 billion and a price-to-earnings (P/E) ratio of 7.46 for the last twelve months as of Q2 2024, Altice USA appears to be trading at relatively modest valuations. This is further supported by an InvestingPro Tip suggesting that the current valuation implies a strong free cash flow yield.
While Altice USA has faced challenges, including not being profitable over the last twelve months, analysts are optimistic about its future. An InvestingPro Tip indicates that net income is expected to grow this year, and analysts predict the company will return to profitability. This positive outlook could potentially explain the recent stock price movements and investor interest.
For readers seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for Altice USA, providing a deeper understanding of the company's financial health and market position.
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