In a recent filing with the Securities and Exchange Commission, Next (LON:NXT) Alt S.a.r.l., a significant shareholder and director in Altice USA, Inc. (NYSE:ATUS), reported substantial sales of the company's Class A common stock. On November 22, 2024, Next Alt S.a.r.l. sold a total of 805,227 shares across three separate transactions. 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 sales, Next Alt S.a.r.l. continues to hold a significant position in Altice USA, with 22,756,458 shares remaining. These transactions were part of a broader strategy tied to existing European capped call transactions, as detailed in the filing.
In other recent news, Altice-USA has reported significant developments in its recent earnings and revenue results. The company showcased a Q3 revenue of $2.2 billion and an adjusted EBITDA of $862 million, despite a decline in total and residential revenue. Altice-USA has also seen a significant increase in mobile services revenue and maintains a strong liquidity position with no debt maturities until 2027.
TD Cowen has adjusted its stance on Altice-USA, reducing the price target to $3.50 from the previous $6.00 but continues to recommend a Buy rating on the stock. This decision follows the company's recent performance which presented a mix of financial indicators. The firm's analysis suggests that Altice-USA's new targets, including significant increases in mobile and fiber subscriber additions, are within reach. However, the reduced capital expenditure forecast may slow the rollout of fiber-to-the-home infrastructure.
Altice-USA continues to focus on operational improvements and strategic growth, particularly in its fiber customer base. The company added 47,000 new fiber customers in Q3, reaching a total of 482,000, and grew its mobile services with 36,000 new lines, totaling 420,000. These developments highlight Altice-USA's ongoing commitment to its growth strategy in the dynamic telecommunications market.
InvestingPro Insights
While Next Alt S.a.r.l. has reduced its stake in Altice USA, Inc. (NYSE:ATUS), recent data from InvestingPro reveals some interesting developments for the company. Despite the significant share sales by the major shareholder, ATUS has shown a strong performance in the short term. InvestingPro data indicates a 40.76% price total return over the past three months, suggesting renewed investor interest.
However, it's important to note that the company faces some financial challenges. According to InvestingPro Tips, Altice USA has not been profitable over the last twelve months, with a negative P/E ratio of -7.13. This aligns with the reported basic EPS (Continuing Operations) of -$0.36 for the last twelve months as of Q3 2023.
On a more positive note, an InvestingPro Tip suggests that net income is expected to grow this year, and analysts predict the company will return to profitability. This potential turnaround could explain the recent stock price surge despite the large insider sale.
For investors seeking a deeper understanding of Altice USA's financial health and prospects, InvestingPro offers 9 additional tips that could provide valuable insights into the company's future performance.
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