Patrick Drahi, a significant shareholder and director at Altice USA, Inc. (NYSE:ATUS), has sold a substantial portion of his holdings in the company. On November 20, 2024, Drahi executed several sales of Class A common stock, totaling approximately $19.7 million. The shares were sold at prices ranging from $23.3164 to $25.6836 each.
Following these transactions, Drahi's holding in Altice USA decreased, with 24,366,912 shares remaining. Drahi, through his holding company Next (LON:NXT) Alt S.a.r.l., maintains a significant stake in Altice USA, reflecting his ongoing involvement with the company.
These transactions were part of a broader strategy involving existing European capped call transactions, as noted in the filing. The sales were conducted to repay debt related to these financial agreements.
In other recent news, Altice-USA has been in the spotlight following its Q3 2024 performance. The company reported a significant increase in mobile services revenue and added 47,000 new fiber customers, bringing the total to 482,000. Altice-USA also reported the addition of 36,000 new mobile lines, totaling 420,000. Despite these developments, TD Cowen reduced the price target for Altice-USA due to mixed financial indicators, although the firm continues to maintain a Buy rating on the stock.
Altice-USA has set ambitious near-term targets, including a reduction in capital expenditures for 2025 and an aim to achieve EBITDA margins around 40%. However, this reduced capex forecast is expected to slow down the rollout of fiber-to-the-home infrastructure. The company also reported Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million, while maintaining a strong liquidity position with no debt maturities until 2027.
Despite the challenges, Altice-USA remains committed to its strategic direction, focusing on operational excellence and market strategy evolution. The company's plans include growing its fiber and mobile subscriber bases to over 1 million customers each by 2026 and 2027, respectively. These recent developments indicate Altice-USA's progress in the dynamic telecommunications market.
InvestingPro Insights
In light of Patrick Drahi's recent stock sales, it's worth examining Altice USA's current financial position and market performance. According to InvestingPro data, Altice USA's market capitalization stands at $1.2 billion, reflecting the company's current valuation in the market.
Despite the recent insider selling, InvestingPro Tips suggest that Altice USA's valuation implies a strong free cash flow yield, which could be attractive to value-oriented investors. This metric is particularly relevant given Drahi's sale to repay debt, as it indicates the company's ability to generate cash relative to its market value.
Another InvestingPro Tip highlights that Altice USA's stock price movements are quite volatile. This volatility is evident in the company's recent price performance, with a strong 32.97% return over the last three months, contrasting with a 25.54% decline year-to-date. Such fluctuations may present both risks and opportunities for investors following Drahi's transactions.
It's worth noting that InvestingPro offers 8 additional tips for Altice USA, providing a more comprehensive analysis for investors interested in delving deeper into the company's prospects.
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