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Patrick Drahi, a director and ten percent owner of Altice USA, Inc. (NYSE:ATUS), has recently sold shares of the company's Class A common stock, according to a Form 4 filing with the Securities and Exchange Commission. The transactions, dated October 31, 2024, involved the sale of a total of 805,227 shares, generating approximately $19.7 million. The sale prices ranged from $23.3164 to $25.6836 per share.
Following these transactions, Drahi, through his holding company Next Alt S.a.r.l., retains direct ownership of 35,640,090 shares. These sales were conducted in conjunction with the exercise and expiration of capped call transactions, as noted in the filing.
In other recent news, Altice USA has seen recent developments in its financial performance and future prospects. The company's Q2 2024 results showed a mixed performance with revenues of $2.2 billion and an adjusted EBITDA of $867 million, marking year-on-year declines of 3.6% and 5.9% respectively. Despite these declines, the telecommunications firm saw an increase in fiber and mobile customers, but faced a net loss of 51,000 broadband subscribers.
Citi, a financial services firm, has adjusted its outlook on Altice USA, reducing the stock's price target to $2.50 from the previous $3.00, while maintaining a Buy rating on the shares. This valuation change follows the company's recent financial results and disclosures in its 10-Q filing. Citi's stance remains positive, with an emphasis on the potential for Altice USA to restructure its operations, improve its financial performance, and monetize non-core assets.
The company's capital expenditures were down by 27% year-over-year to $348 million, with a full-year CapEx expected to be under $1.6 billion. Altice USA's debt maturity profile remains stable until 2027, with a weighted average cost of debt at 6.5%. These are among the recent developments in the company's financial and operational status.
InvestingPro Insights
In light of Patrick Drahi's recent share sale, it's worth examining Altice USA's current financial position and market performance. According to InvestingPro data, Altice USA's market capitalization stands at $1.72 billion, reflecting the company's current valuation in the market.
Despite recent challenges, InvestingPro Tips suggest that Altice USA's net income is expected to grow this year, and analysts predict the company will return to profitability. This positive outlook could provide context for Drahi's decision to sell shares, possibly as part of a broader portfolio rebalancing strategy rather than a lack of confidence in the company's prospects.
The company's financial metrics reveal a mixed picture. While Altice USA boasts a strong gross profit margin of 67.52% for the last twelve months as of Q2 2024, it has experienced a revenue decline of 2.88% over the same period. This contrasting performance underscores the challenges and opportunities facing the company in the current market environment.
Interestingly, Altice USA has seen a robust 29.26% price return over the past three months, aligning with the InvestingPro Tip highlighting the stock's strong recent performance. This positive momentum could be attracting investor attention despite the company's short-term financial obligations exceeding its liquid assets.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Altice USA, providing deeper insights into the company's financial health and market position.
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