In a recent transaction, Patrick Drahi, the director and a significant shareholder of Altice USA, Inc. (NYSE:ATUS), sold a substantial portion of Class A common stock. The sale, which took place on December 6, 2024, involved 805,230 shares, generating a total of approximately $19.7 million. The shares were sold at prices ranging from $23.3164 to $25.6836 per share. Currently trading at $2.36, the stock has shown significant volatility, as highlighted by InvestingPro data, which rates the company's overall financial health as "Fair" with a score of 2.23 out of 5.
Following the sale, Drahi retains ownership of 15,509,412 shares. The transaction is part of a broader strategy involving the exercise and expiration of Capped Calls, as noted in the filing. Drahi's investment vehicle, Next (LON:NXT) Alt S.a.r.l., remains a significant stakeholder in Altice USA. While currently unprofitable, InvestingPro analysis suggests the company is undervalued, with analysts forecasting a return to profitability this year. For detailed insights and additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Altice USA reported strong subscriber growth in its fiber and mobile segments in its Q3 2024 earnings, despite a decline in total and residential revenue. The company reported Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million, and added 47,000 new fiber customers, reaching a total of 482,000. In addition, mobile services grew with 36,000 new lines, totaling 420,000.
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. The firm's analysis indicates the new targets set by Altice USA appear to be within reach, but the reduced capex forecast may lead to a slower pace in the rollout of fiber-to-the-home infrastructure.
The company maintains a strong liquidity position with no debt maturities until 2027 and generated $77 million in free cash flow in Q3. Altice USA is committed to growing its fiber and mobile subscriber bases, aiming for over 1 million customers in each segment by 2026 and 2027, respectively. These are recent developments that have emerged from the company's strategic growth and operational improvements.
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