Patrick Drahi, a director and significant shareholder of Altice USA, Inc. (NYSE:ATUS), has sold shares worth approximately $19.7 million, according to a recent filing. The transactions occurred on November 1, 2024, with Drahi offloading a total of 805,227 shares of Class A common stock. The shares were sold at prices ranging from $23.3164 to $25.6836 per share.
Following these transactions, Drahi continues to hold a substantial number of shares in the company. The sales were part of a series of transactions involving Next Alt S.a.r.l., Drahi's personal holding company, which also engaged in various call option exercises on the same date.
Next Alt S.a.r.l., under Drahi's control, remains a major stakeholder in Altice USA, maintaining significant influence within the company's board through a stockholders agreement that grants rights to appoint directors.
In other recent news, Altice USA experienced a challenging third quarter, marked by revenue decline and a surprising loss. The company reported a loss of $0.09 per share, missing analyst estimates of $0.04 earnings per share. Revenue fell 3.9% year-over-year to $2.23 billion, slightly below the consensus forecast of $2.24 billion. In addition, Altice USA's residential revenue dropped 5.6% compared to the prior year quarter, reflecting continued pressure on its core cable TV and broadband businesses.
Despite these developments, Altice USA reported positive momentum in its fiber and mobile product lines. The company saw mobile line net additions of 36,000, its best performance in four years, and added 47,000 fiber customers, increasing its total fiber subscriber base to 482,000. Adjusted EBITDA declined 5.8% year-over-year to $862 million in Q3. However, Altice USA maintained its full year 2024 capital expenditure guidance of $1.5 billion, a decrease of $200 million from 2023 levels.
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 $1.69 billion, reflecting the company's current valuation in the market.
Despite the recent insider selling, InvestingPro Tips suggest that Altice USA's valuation implies a strong free cash flow yield, which could be attractive to value-oriented investors. This metric might indicate that the company is generating substantial cash relative to its market price, potentially offering a cushion against the recent share price volatility.
Speaking of volatility, another InvestingPro Tip notes that Altice USA's stock price movements have been quite volatile. This is corroborated by the company's impressive 47.49% price return over the last three months, as reported in the InvestingPro Data. Such significant price swings could present both opportunities and risks for investors.
It's important to note that while the company has shown strong recent performance, it was not profitable over the last twelve months. However, an InvestingPro Tip indicates that analysts predict the company will be profitable this year, which could signal a potential turnaround in financial performance.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 5 more InvestingPro Tips available for Altice USA, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.