In a recent series of transactions, Patrick Drahi, a director and significant shareholder of Altice USA, Inc. (NYSE:ATUS), sold a substantial amount of the company's Class A common stock. The sales, conducted through Drahi's holding company, Next (LON:NXT) Alt S.a.r.l., occurred on November 6, 2024, and involved the disposal of 805,227 shares.
The shares were sold at prices ranging from $23.3164 to $25.6836 per share, resulting in a total transaction value of approximately $19.7 million. Following these transactions, Drahi's direct ownership in Altice USA stands at 32,419,182 shares.
These transactions were made in connection with the expiration and exercise of capped call transactions, which are financial instruments used to manage equity exposure. Drahi and Next Alt S.a.r.l. maintain their significant stake in the company, continuing to hold a sizeable portion of Altice USA's Class A common stock.
In other recent news, Altice-USA reported significant developments in its Q3 2024 earnings call. Despite a reduction in total and residential revenue, the company saw a notable increase in mobile services revenue. Altice-USA reported Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million, adding 47,000 new fiber customers and 36,000 new mobile lines. TD Cowen, in its analysis, reduced the price target for Altice-USA but maintained a Buy rating on the stock, following the company's mixed financial performance. The firm acknowledged Altice-USA's progress in key areas, including strong subscriber growth in its fiber and mobile segments. However, it noted that the reduced capex forecast might slow the rollout of fiber-to-the-home (FTTH) infrastructure. Altice-USA aims to achieve EBITDA margins around 40%, though the timing remains unspecified. The company maintains a strong liquidity position with no debt maturities until 2027 and is committed to growing its fiber and mobile subscriber bases.
InvestingPro Insights
While Patrick Drahi's recent sale of Altice USA (NYSE:ATUS) shares might raise eyebrows, a closer look at InvestingPro data reveals a more nuanced picture of the company's financial health and market performance.
Despite the significant stock sale by the director, Altice USA has shown remarkable resilience in the market. InvestingPro data indicates a strong 63.52% price total return over the past three months, suggesting investor confidence remains robust. This aligns with an InvestingPro Tip highlighting the company's "Strong return over the last three months."
However, investors should note that Altice USA's financial performance has been mixed. The company's revenue for the last twelve months as of Q3 2023 stood at $9.02 billion, with a revenue growth rate of -3.05%. This decline in revenue is reflected in the company's EBITDA, which also saw a decrease of 4.24% over the same period.
On a more positive note, an InvestingPro Tip suggests that "Net income is expected to grow this year," which could signal a potential turnaround in the company's profitability. This expectation is further supported by another tip indicating that "Analysts predict the company will be profitable this year."
For investors seeking a deeper understanding of Altice USA's financial position and future prospects, InvestingPro offers 6 additional tips not mentioned here. These insights could prove valuable in assessing the impact of Drahi's stock sale and the company's overall investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.