Patrick Drahi, a director and significant stakeholder in Altice USA, Inc. (NYSE:ATUS), has sold shares worth approximately $19.7 million. The transactions, which took place on October 29, involved the sale of Class A common stock at prices ranging from $23.3164 to $25.6836 per share. Following these transactions, Drahi, through his holding company Next Alt S.a.r.l., retains ownership of 31,940,710 shares. The sales were part of a series of transactions related to existing financial agreements involving capped call transactions with a financial institution.
In other recent news, Altice USA has been the focus of updated projections by Citi, which has lowered its price target for the company to $2.50 while maintaining a Buy rating. This adjustment follows Altice's Q2 2024 earnings report and recent disclosures in its 10-Q filing. The telecommunications firm reported Q2 revenues of $2.2 billion and an adjusted EBITDA of $867 million, reflecting year-over-year declines of 3.6% and 5.9% respectively. Despite these decreases, the company saw growth in fiber and mobile customers, albeit with a net loss of 51,000 broadband subscribers.
Citi remains optimistic about Altice USA's potential to improve its financial performance through operational restructuring and the monetization of non-core assets. Analysts at the firm also cite the company's strategic advantages due to its geographic reach and the growing interest in combined mobile and broadband services. However, they also note potential risks, including the possibility that Altice USA's EBITDA may not meet expectations, which could affect the company's net debt leverage and shareholder equity value.
In addition to its financial results, Altice USA has reported operational improvements such as fewer customer service calls and truck rolls, as well as an increase in customer satisfaction and brand awareness. The company is also investing in AI and data to enhance its capabilities and customer service, and plans to expand its B2B offerings. These recent developments are part of Altice USA's long-term growth strategy as it navigates a highly competitive environment.
InvestingPro Insights
In light of Patrick Drahi's recent share sale, it's worth examining Altice USA's current financial position and market performance. According to InvestingPro data, Altice USA's market capitalization stands at $1.63 billion, reflecting the company's current valuation in the market.
Despite the recent insider selling, Altice USA has shown some positive momentum in its stock performance. InvestingPro Tips highlight that the company has seen a significant return over the last week, with a 9.32% price increase. This short-term gain is part of a broader trend, as the stock has demonstrated strong returns over the last three and six months, with impressive gains of 22.27% and 33.68%, respectively.
However, investors should note that Altice USA's financial health presents a mixed picture. The company's revenue for the last twelve months as of Q2 2023 was $9.11 billion, but it experienced a slight decline with a revenue growth of -2.88% over the same period. On a positive note, Altice USA maintains a robust gross profit margin of 67.52%, indicating efficient cost management in its core operations.
For those considering an investment in Altice USA, it's important to be aware that the stock price movements are quite volatile, as noted by one of the InvestingPro Tips. This volatility could present both opportunities and risks for investors.
InvestingPro offers additional insights, with 10 more tips available for Altice USA, providing a more comprehensive analysis for potential investors. These tips can be accessed through the InvestingPro product, offering a deeper dive into the company's financial health and market position.
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