What Happened:Shares of telecommunications and cable services provider Altice USA (NYSE:ATUS) fell 13.6% in the morning session after Wells Fargo analyst downgraded the stock's rating from Equal Weight (Hold) to Under Weight (Sell) and lowered the price target from $2 to $1. The analyst cited "increased competition in the fiber business" and raised doubts about a potential acquisition by Charter Communications (NASDAQ:CHTR).
As a reminder, shares of ATUS rose in February 2024 after Bloomberg reported that Charter Communications was considering acquiring the company.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Altice USA? Find out by reading the original article on StockStory.
What is the market telling us:Altice USA's shares are very volatile and over the last year have had 82 moves greater than 5%. But moves this big are very rare even for Altice USA and that is indicating to us that this news had a significant impact on the market's perception of the business.
Altice USA is down 32.2% since the beginning of the year, and at $2.18 per share it is trading 40.1% below its 52-week high of $3.64 from August 2023. Investors who bought $1,000 worth of Altice USA's shares 5 years ago would now be looking at an investment worth $95.60.
