Patrick Drahi, a director and significant shareholder of Altice USA, Inc. (NYSE:ATUS), recently divested a substantial amount of the company's Class A common stock. On December 17, Drahi sold a total of 805,230 shares, generating approximately $19.7 million. The sale prices ranged from $23.3164 to $25.6836 per share. According to InvestingPro data, ATUS shares have since experienced significant volatility, now trading at $2.50, with a market capitalization of $1.16 billion.
Following these transactions, Drahi's direct holdings in Altice USA decreased, leaving him with 9,872,802 shares. These sales were part of a series of transactions involving the exercise and expiration of capped call options, as detailed in the recent SEC filing. InvestingPro analysis suggests the stock is currently undervalued, with a "Fair" overall financial health score. Subscribers can access detailed insider trading patterns and 6 additional ProTips in the comprehensive Pro Research Report, available for over 1,400 US stocks.
In other recent news, Altice USA reported significant developments in its Q3 2024 earnings call, including operational improvements and strategic growth in its fiber customer base. The company saw an increase in mobile services revenue and maintains a strong liquidity position with no debt maturities until 2027. Altice USA added 47,000 new fiber customers in Q3, reaching a total of 482,000, and grew its mobile services with 36,000 new lines, totaling 420,000. This comes after the announcement of an executive transition, with Colleen Schmidt, Executive Vice President, Human Resources, transitioning to a Senior Advisor role to the CEO until her separation from the company in March 2025.
Citi analysts have retained their Buy rating on Altice USA, highlighting opportunities for cost reduction and positive pricing actions in 2025. This revised outlook considers the company's recent broadband pricing updates and customer framework changes, which could lead to revenue growth. Meanwhile, TD Cowen maintains a Buy rating on the stock, despite reducing the price target following the company's mixed Q3 2024 performance.
These recent developments indicate Altice USA's strategic focus on enhancing operations and financial standing, with a particular emphasis on fiber and mobile customer growth. The company's initiatives, such as the refresh of its broadband rate card and the initiation of a new customer framework, are viewed as potential drivers for future success. These facts are based on recent news items and analyst notes, providing a snapshot of the company's current situation.
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