In a recent filing with the Securities and Exchange Commission, Altice USA, Inc. (NYSE:ATUS) reported that Patrick Drahi, a significant shareholder and director, executed a substantial sale of the company’s Class A common stock on November 15, 2024. Drahi sold a total of 805,227 shares, with transaction prices ranging from $23.3164 to $25.6836 per share. The total value of these transactions amounted to approximately $19.7 million.
Following these sales, Drahi’s holdings in Altice USA decreased to 26,782,593 shares. These transactions were part of a broader strategy involving existing bilateral European capped call transactions, as detailed in the filing.
In other recent news, Altice-USA reported significant developments in its Q3 2024 performance. The company showcased strong subscriber growth in its fiber and mobile segments, with a reported addition of 47,000 new fiber customers and 36,000 new mobile lines. This growth contributed to a Q3 revenue of $2.2 billion and an adjusted EBITDA of $862 million. Despite a decline in total and residential revenue, Altice-USA saw a significant increase in mobile services revenue and maintains a strong liquidity position with no debt maturities until 2027.
TD Cowen adjusted its stance on Altice-USA shares, reducing the price target to $3.50 from the previous $6.00, but maintained a Buy rating. The firm noted that while new targets set by Altice-USA appear promising, the lowered EBITDA suggests a potential operational turnaround may start from a weaker financial position than previously anticipated. Despite this, TD Cowen remains confident in the company’s strategic direction.
Altice-USA has set ambitious near-term targets, including significant increases in mobile and fiber subscriber additions, a reduction in capital expenditures for 2025, and an aim to achieve EBITDA margins around 40%. These recent developments indicate Altice-USA’s commitment to its growth strategy in the dynamic telecommunications market.
InvestingPro Insights
While Patrick Drahi’s recent stock sale might raise eyebrows, it’s crucial to consider Altice USA’s (NYSE:ATUS) current financial position and market performance. According to InvestingPro data, Altice USA’s market capitalization stands at $1.11 billion, reflecting the company’s current valuation in the telecommunications sector.
Despite recent challenges, InvestingPro Tips suggest that Altice USA’s net income is expected to grow this year, potentially signaling a turnaround in the company’s financial performance. This projection aligns with another InvestingPro Tip indicating that analysts predict the company will be profitable this year, which could provide some reassurance to investors concerned about the recent insider selling.
It’s worth noting that Altice USA has shown strong performance in the short term, with a remarkable 57.32% price total return over the last three months. This positive momentum contrasts with the stock’s 8.18% decline over the past week, highlighting the volatility that investors should be aware of.
For those seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could be valuable for understanding Altice USA’s financial health and market position. In fact, there are 9 additional InvestingPro Tips available for Altice USA, providing a deeper dive into the company’s prospects and potential risks.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
