In a recent transaction, Patrick Drahi, a director and significant shareholder of Altice USA, Inc. (NYSE:ATUS), sold a substantial amount of the company's Class A common stock. According to the SEC Form 4 filing, Drahi offloaded a total of 805,227 shares, generating approximately $19.7 million. The shares were sold at prices ranging from $23.3164 to $25.6836 per share. Following these transactions, Drahi's direct ownership now stands at over 27 million shares.
In other recent news, Altice USA reported significant developments in its financial performance and strategic growth. The company's Q3 2024 earnings highlighted strong subscriber growth in its fiber and mobile segments, despite a decline in total and residential revenue. Altice USA recorded Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million. Furthermore, the company added 47,000 new fiber customers and 36,000 new mobile lines, indicating a robust growth trajectory.
TD (TSX:TD) Cowen, in its recent analysis, reduced the price target for Altice-USA but maintained a Buy rating. The firm acknowledged the company's progress and the feasibility of its new targets, despite a reduced capex forecast expected to slow the rollout of fiber-to-the-home infrastructure. The lowered EBITDA suggests a potentially weaker financial starting point for the company's operational turnaround.
Lastly, Altice USA remains committed to its strategic goals, aiming to reach over 1 million customers in each of its fiber and mobile segments by 2026 and 2027, respectively. The company continues to focus on operational excellence and market strategy evolution, aiming to sustain its progress in the telecommunications market.
InvestingPro Insights
While Patrick Drahi's recent stock sale might raise eyebrows, a closer look at Altice USA's financial metrics and market performance offers a more nuanced picture. According to InvestingPro data, Altice USA's stock has shown strong momentum recently, with a remarkable 48.82% price return over the last three months. This surge aligns with an InvestingPro Tip indicating a "strong return over the last three months."
Despite the recent positive stock performance, Altice USA faces some challenges. The company's revenue for the last twelve months as of Q3 2024 stood at $9.02 billion, with a revenue growth of -3.05% over the same period. This decline in revenue is reflected in the company's profitability, as another InvestingPro Tip notes that Altice USA has "not been profitable over the last twelve months."
However, it's not all doom and gloom for Altice USA. An InvestingPro Tip suggests that "analysts predict the company will be profitable this year," which could signal a potential turnaround. Additionally, the company's valuation metrics present an interesting picture, with a price-to-earnings ratio (adjusted) of 7.93 for the last twelve months as of Q3 2024, indicating that the stock might be undervalued relative to its earnings potential.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Altice USA, providing a deeper understanding of the company's financial health and market position.
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