Altice USA sees $19.7 million in stock sales by next alt

On November 18, Next (LON:NXT) Alt S.a.r.l., a significant shareholder of Altice USA, Inc. (NYSE:ATUS), executed a series of stock sales totaling approximately $19.7 million. The sales involved Class A common stock, with prices ranging from $23.3164 to $25.6836 per share.

Following these transactions, Next Alt's holdings in Altice USA were reduced to 25,977,366 shares. This activity was part of a broader series of transactions, including the exercise and expiration of certain European capped call transactions involving Altice USA's shares.

Next Alt S.a.r.l. is an indirect wholly-owned and controlled personal holding company of Patrick Drahi, who is also a director of Altice USA. The transactions were executed under a power of attorney granted to Armelle Koelf, acting on behalf of both Next Alt and Patrick Drahi.

In other recent news, Altice-USA has been under the spotlight following its Q3 2024 Earnings Call and subsequent analyst remarks. The company reported Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million, showcasing strong growth in its fiber and mobile segments. Altice-USA added 47,000 new fiber customers, reaching 482,000 in total, and expanded its mobile services with 36,000 new lines, totaling 420,000. Despite a decline in total and residential revenue, the company saw a significant increase in mobile services revenue.

TD Cowen recently adjusted its stance on Altice-USA, reducing the price target but maintaining a Buy rating. The firm acknowledged the company's progress and set new near-term targets, including significant increases in mobile and fiber subscriber additions and a reduction in capital expenditures for 2025. However, the reduced capex forecast is expected to lead to a slower pace in the rollout of fiber-to-the-home infrastructure.

These recent developments have highlighted the company's ambitious growth strategy in the fiber and mobile segments. Altice-USA is aiming for over 1 million customers in each segment by 2026 and 2027, respectively, while also anticipating reaching 500,000 fiber customers by year-end 2023. Despite challenges, the company continues to focus on operational excellence and market strategy evolution.

InvestingPro Insights

Recent data from InvestingPro sheds additional light on Altice USA's current financial position and market performance, providing context to the significant stock sales by Next Alt S.a.r.l.

Altice USA's stock has experienced considerable volatility recently. An InvestingPro Tip indicates that the stock has taken a big hit over the last week, with data showing a 1-week price total return of -15.05%. This recent downturn contrasts sharply with the company's 3-month price total return of 48.12%, highlighting the stock's erratic behavior.

Despite the recent insider sales and stock volatility, another InvestingPro Tip suggests that Altice USA's valuation implies a strong free cash flow yield. This could indicate that the market may be undervaluing the company's ability to generate cash relative to its stock price.

It's worth noting that Altice USA's market capitalization stands at $1.1 billion, with a revenue of $9.02 billion for the last twelve months as of Q3 2023. However, the company's revenue growth has been negative, with a -3.05% decline over the same period.

For investors seeking a more comprehensive analysis, InvestingPro offers 9 additional tips for Altice USA, providing a deeper understanding of the company's financial health and market position.

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