Patrick Drahi, a director and significant shareholder of Altice USA, Inc. (NYSE:ATUS), has sold shares of the company amounting to a total of $19.7 million. The transactions, which took place on December 3, 2024, involved the sale of 805,227 shares of Class A common stock. The sale prices ranged from $23.3164 to $25.6836 per share. The company, currently valued at $1.16 billion, has seen its stock trade at $2.49, with InvestingPro analysis indicating the shares are currently undervalued.
Following these transactions, Drahi, through his holding company Next (LON:NXT) Alt S.a.r.l., retains ownership of 17,925,096 shares. The sales were part of a series of transactions connected to existing bilateral European capped call agreements with a financial institution, as detailed in the company's filings. According to InvestingPro data, the company carries significant debt of $25.3 billion and faces liquidity challenges with a current ratio of 0.41.
Want deeper insights? InvestingPro subscribers get access to 8 additional key insights about Altice USA, including detailed financial health scores and comprehensive valuation analysis.Next Alt S.a.r.l., Drahi's personal holding company, is an indirect wholly-owned entity under his control and holds certain rights to appoint directors to the board of Altice USA. Despite the sales, Drahi remains a significant shareholder in the company.
In other recent news, Altice-USA has seen notable advancements in its Q3 2024 performance. The company reported Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million, along with achieving strong subscriber growth in its fiber and mobile segments. Altice-USA added 47,000 new fiber customers in Q3, totaling 482,000, and grew its mobile services with 36,000 new lines, reaching 420,000. Despite a decline in total and residential revenue, the company saw a significant increase in mobile services revenue.
TD (TSX:TD) Cowen recently adjusted its stance on Altice-USA, reducing the price target to $3.50 from the previous $6.00, but maintained a Buy rating on the stock. The firm acknowledged the company's progress in key areas and believes the new targets set by Altice-USA, including significant increases in mobile and fiber subscriber additions, are achievable.
These recent developments indicate Altice-USA's commitment to operational improvements and strategic growth. The company aims to grow its fiber and mobile subscriber bases, targeting over 1 million customers in each segment by 2026 and 2027, respectively. Despite potential challenges, Altice-USA continues to focus on operational excellence and evolving market strategy.
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