Altice USA director Patrick Drahi sells $19.7 million in shares By Investing.com
Patrick Drahi, director and significant shareholder of Altice USA, Inc. (NYSE:ATUS), sold about $19.7 million worth of stock, according to a recent filing. The transaction, which occurred on November 14, involved the sale of 805,227 shares of Class A common stock at prices ranging from $23.3164 to $25.6836 per share. After this transaction, Drahi, through his holding company The next one (LON:) Alt Sarl, continues to be the majority shareholder in the company, with more than 27.5 million shares outstanding.
In other recent news, Altice-USA’s Q3 2024 call showed operational improvements and strategic growth in its fiber and mobile segments. The company reported Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million, with the addition of 47,000 new fiber customers and 36,000 mobile lines. Despite the decline in revenue and occupancy, Altice-USA has seen a significant increase in mobile services revenue and maintains a strong revenue position with no debt maturities until 2027.
TD Cowen adjusted its stance on Altice-USA, lowering the price target to $3.50 from the previous $6.00, while maintaining a buy rating. The company acknowledges Altice-USA’s progress in key areas, but notes that the reduced capex forecast may lead to slower FTTH infrastructure rollouts. The analyst also pointed out that the reduced EBITDA suggests that a possible turnaround in performance may start from a weaker financial position than previously expected.
Altice-USA has set ambitious near-term goals, including significant increases in the number of mobile and fiber subscribers, a reduction in 2025 capex, and a goal of achieving EBITDA margins of around 40%. The company is committed to growing its fiber and mobile subscriber bases, aiming to have more than 1 million customers in each category by 2026 and 2027, respectively. Despite the challenges, Altice-USA continues to focus on efficiency and market strategic evolution.
InvestingPro Insights
The latest data from InvestingPro sheds more light on Altice USA’s financial position and market performance, providing context to Patrick Drahi’s recent stock selloff. Despite significant insider trading, Altice USA stock has shown strong momentum, with InvestingPro data showing an impressive 61.11% price return over the past three months. This increase coincides with InvestingPro’s tip indicating “Strong returns over the past three months.”
However, investors should be aware that Altice USA’s financial health presents a mixed picture. The company’s revenue for the last twelve months from Q3 2023 stood at $9.02 billion, with a revenue decrease of 3.05% over the same period. This decline is reflected in the company’s profitability, as one InvestingPro Tip points out that Altice USA “Has not been profitable in the past twelve months.”
Even better, analysts are optimistic about the company’s future prospects. InvestingPro’s tip suggests that “Revenue is expected to grow this year,” and analysts predict the company will return to profitability. This forward-looking outlook may explain why the stock has retained investor interest despite recent challenges.
For readers looking for a comprehensive analysis, InvestingPro offers 6 additional tips and a wealth of Altice USA financial metrics. This deep dive can provide valuable insights into a company’s valuation, growth opportunities, and potential risks.
This article was created with the support of AI and reviewed by an editor. For more information see our T&C.
