Patrick Drahi, a significant shareholder and director at Altice USA, Inc. (NYSE:ATUS), has sold a substantial amount of Class A common stock. The transactions, dated November 11, 2024, involved a total of 805,227 shares sold at prices ranging from $23.3164 to $25.6836 per share, culminating in a total value of approximately $19.7 million. Following these sales, Drahi's indirect holding company, Next (LON:NXT) Alt S.a.r.l., retains ownership of 30,003,501 shares. The transactions are part of ongoing financial maneuvers related to capped call transactions with a financial institution.
In other recent news, Altice-USA showcased robust subscriber growth in its fiber and mobile segments in the third quarter of 2024. The company reported a quarterly revenue of $2.2 billion and an adjusted EBITDA of $862 million. Altice-USA added 47,000 new fiber customers and 36,000 new mobile lines, bringing the totals to 482,000 and 420,000 respectively. Despite this positive growth, TD Cowen has reduced its price target for Altice-USA from $6.00 to $3.50, but continues to recommend a Buy rating on the stock. The firm's analysis indicates that the new targets set by Altice-USA appear achievable, despite the reduced forecast for capital expenditures expected to slow the rollout of fiber-to-the-home infrastructure. Additionally, the company maintains a strong liquidity position with no debt maturities until 2027. Altice-USA aims to grow its fiber and mobile subscriber bases to over 1 million customers each by 2026 and 2027 respectively.
InvestingPro Insights
In light of Patrick Drahi's significant 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 telecommunications sector.
Despite recent stock sales by a major shareholder, Altice USA has shown strong market performance in the short term. InvestingPro Tips highlight that the company has delivered a strong return over the last month and three months, with price total returns of 13.88% and 64.12% respectively. This positive momentum is further underscored by a substantial 32.86% price total return over the past six months.
However, investors should note that Altice USA faces some financial challenges. The company was not profitable over the last twelve months, with a negative return on assets of -0.46%. Additionally, an InvestingPro Tip points out that Altice USA's short-term obligations exceed its liquid assets, which could potentially impact the company's financial flexibility.
On a more positive note, analysts predict that the company will be profitable this year, and net income is expected to grow. This outlook aligns with the stock's recent performance and suggests potential for future value creation.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Altice USA, providing a deeper understanding of the company's financial health and market position.
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