Next (LON:NXT) Alt S.a.r.l and Patrick Drahi, both significant stakeholders in Altice USA, Inc. (NYSE:ATUS), have reported substantial sales of the company's Class A common stock. The transactions, which took place on November 26, 2024, involved a total of 805,227 shares sold at prices ranging from $23.3164 to $25.6836 per share. The total value of these sales amounted to approximately $19.7 million.
Following these transactions, the number of shares owned by Next Alt and Drahi decreased, with Next Alt continuing to hold a significant position in Altice USA. The sales were conducted as part of a broader strategy related to existing financial arrangements, as noted in the accompanying footnotes of the Form 4 filing. These filings indicate that the transactions were linked to the exercise and expiration of certain capped call transactions, which are financial instruments used to manage investment positions.
Both Next Alt and Patrick Drahi maintain a direct ownership stake in Altice USA, and continue to influence the company's strategic direction through their roles and agreements.
In other recent news, Altice-USA has experienced a series of significant developments. TD Cowen has adjusted its stance on Altice-USA shares, reducing the price target to $3.50 from the previous $6.00, while maintaining a Buy rating. This decision comes in the wake of Altice-USA's third-quarter 2024 performance, which demonstrated a mix of financial results.
The company reported a strong growth in its fiber and mobile segments, along with setting ambitious near-term targets. These include significant increases in mobile and fiber subscriber additions, a reduction in capital expenditures for 2025, and an aim to achieve EBITDA margins around 40%. However, the reduced capex forecast is expected to slow the rollout of fiber-to-the-home infrastructure.
Altice-USA reported Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million, while adding 47,000 new fiber customers and 36,000 new mobile lines. Despite a decline in total and residential revenue, the company saw a significant increase in mobile services revenue and maintains a strong liquidity position with no debt maturities until 2027. These are just a few of the recent developments surrounding Altice-USA.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Altice USA's financial situation and market performance. Despite the significant stock sales by major stakeholders, Altice USA's market capitalization stands at $1.21 billion, reflecting the company's substantial presence in the telecommunications industry.
InvestingPro Tips highlight that Altice USA's stock price movements have been quite volatile, which aligns with the recent large-scale transactions by Next Alt and Patrick Drahi. This volatility is further evidenced by the company's strong 31.41% return over the past three months, contrasting with a year-to-date decline of 22.77%.
Interestingly, while the company was not profitable over the last twelve months, analysts predict that Altice USA will be profitable this year. This projection could be a factor in the timing of the stakeholders' stock sales, potentially capitalizing on improved financial expectations.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide valuable insights into Altice USA's financial health and market position. These additional tips, along with real-time metrics, can help investors make more informed decisions in light of the recent insider transactions.
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