Patrick Drahi, a director and significant shareholder of Altice USA, Inc. (NYSE:ATUS), recently executed a series of stock sales amounting to approximately $19.7 million. The transactions, disclosed in a regulatory filing, involved the sale of Class A common stock over a single day, December 4, 2024. The shares were sold at prices ranging from $23.3164 to $25.6836 per share. With the stock currently trading at $2.56 and a market capitalization of $1.19 billion, InvestingPro analysis indicates the stock is currently undervalued based on its Fair Value assessment.
Following these transactions, Drahi's holding in Altice USA decreased to 17,119,869 shares. The sales were conducted through Next (LON:NXT) Alt S.a.r.l., an entity wholly owned and controlled by Drahi. This activity comes as part of Drahi's ongoing management of his investment portfolio in the cable and telecommunications company. While the company isn't currently profitable, analysts tracked by InvestingPro expect positive earnings this year, with the stock showing strong momentum, up nearly 20% over the past year despite its volatile nature. Get access to 8 more exclusive InvestingPro Tips and comprehensive analysis through the Pro Research Report.
In other recent news, Altice-USA reported a mixed financial performance for the third quarter of 2024. The company showcased strong subscriber growth in its fiber and mobile segments, with ambitious new 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%. Despite these positive developments, TD Cowen has reduced its price target for Altice-USA from $6.00 to $3.50, while maintaining a Buy rating on the stock.
In the same quarter, Altice-USA reported revenue of $2.2 billion and adjusted EBITDA of $862 million. The company added 47,000 new fiber customers, reaching a total of 482,000, and grew its mobile services with 36,000 new lines, totaling 420,000. Altice-USA also generated $77 million in free cash flow.
Altice-USA has committed to growing its fiber and mobile subscriber bases, aiming for over 1 million customers in each segment by 2026 and 2027, respectively. The company also anticipates reaching 500,000 fiber customers by the end of 2023. Despite a decline in total and residential revenue, Altice-USA maintains a strong liquidity position with no debt maturities until 2027.
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