Altice USA, Inc. (NYSE:ATUS) reported significant insider stock sales by Next (LON:NXT) Alt S.a.r.l. and Patrick Drahi, as disclosed in a recent SEC filing. On November 12, the insiders sold a total of 805,227 shares of Class A common stock, with prices ranging from $23.3164 to $25.6836 per share. The total value of these transactions amounted to approximately $19.7 million.
Following these sales, Next Alt S.a.r.l. and Patrick Drahi's combined ownership of Altice USA shares decreased, with 23,351,622 shares remaining under their direct ownership. The transactions were conducted in connection with the exercise and expiration of capped call transactions, as noted in the filing.
In other recent news, Altice-USA has experienced a series of mixed financial indicators, leading TD Cowen to reduce the price target for its shares from $6.00 to $3.50, while maintaining a Buy rating. The company's Q3 2024 performance revealed strong subscriber growth in fiber and mobile segments and ambitious near-term targets, including increased subscriber additions and a reduction in capital expenditures for 2025. However, the lowered earnings before interest, taxes, depreciation, and amortization (EBITDA) indicates a potentially weaker financial position.
Altice-USA also reported Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million. The company added 47,000 new fiber customers and 36,000 new mobile lines, bringing the totals to 482,000 and 420,000 respectively. Despite a decline in total and residential revenue, the company saw a significant increase in mobile services revenue and maintains a strong liquidity position with no debt maturities until 2027.
The company is committed to growing its fiber and mobile subscriber bases, aiming for over 1 million customers in each segment by 2026 and 2027, respectively. Despite these challenges, Altice-USA continues to focus on operational excellence and market strategy evolution, with an aim to continue its progress in the dynamic telecommunications market.
InvestingPro Insights
Recent insider sales at Altice USA, Inc. (NYSE:ATUS) have drawn attention to the company's financial performance and market position. According to InvestingPro data, Altice USA's market capitalization stands at $1.26 billion, reflecting the company's current valuation in the telecommunications sector.
Despite the recent insider sales, InvestingPro Tips suggest that Altice USA's net income is expected to grow this year, which could potentially offset concerns about the insider transactions. Additionally, the stock's valuation implies a strong free cash flow yield, indicating that the company may be undervalued relative to its cash-generating abilities.
However, investors should note that Altice USA's stock price movements have been quite volatile. This volatility is evident in the company's recent performance, with a strong return of 64.12% over the last three months and 32.86% over the last six months, according to InvestingPro data.
It's worth mentioning that Altice USA does not pay a dividend to shareholders, which may be a consideration for income-focused investors. For those interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for Altice USA, providing a deeper understanding of the company's financial health and market position.
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