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Altice USA sees $19.7 million stock sale by director Patrick Drahi

Published 2024-12-03, 05:14 p/m
ATUS
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In a recent development, Patrick Drahi, a director and significant shareholder of Altice USA, Inc. (NYSE:ATUS), executed a substantial sale of the company's Class A common stock. According to a filing with the Securities and Exchange Commission, Drahi sold a total of 805,227 shares on December 2, 2024. The company, currently valued at $1.17 billion, has been experiencing notable stock price volatility, according to InvestingPro data. The sale price ranged from $23.3164 to $25.6836 per share, amounting to a total transaction value of approximately $19.7 million.

Following these transactions, Drahi retains ownership of 18,730,323 shares in Altice USA. The sales were conducted through Next (LON:NXT) Alt S.a.r.l., Drahi's personal holding company, which holds a significant stake in the cable and telecommunications company. This move comes as part of a series of transactions related to existing financial arrangements, as noted in the filing.

"In other recent news, Altice-USA reported strong subscriber growth in its fiber and mobile segments in its third-quarter 2024 performance, with Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million. The company added 47,000 new fiber customers, reaching a total of 482,000, and grew its mobile services with 36,000 new lines, totaling 420,000. 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 (TSX:TD) Cowen, despite reducing the price target to $3.50 from $6.00, continues to recommend a Buy rating on Altice-USA's stock. The firm acknowledges the company's progress and achievable goals, but notes the lowered EBITDA suggests a potential operational turnaround may start from a weaker financial position. Altice-USA has set ambitious 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 are recent developments in the company's strategic growth and operational improvements."

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