Patrick Drahi, a significant shareholder and director at Altice USA, Inc. (NYSE:ATUS), has recently sold a substantial amount of the company's Class A common stock. According to a filing with the Securities and Exchange Commission, Drahi sold a total of 805,230 shares on December 9, 2024, at prices ranging from $23.3164 to $25.6836 per share. The total value of these transactions amounted to approximately $19.7 million. The stock currently trades at $2.40, with InvestingPro analysis indicating significant price volatility in recent months.
Following these sales, Drahi's holdings in Altice USA were reduced to 14,704,182 shares. The transactions were conducted through Next (LON:NXT) Alt S.a.r.l., Drahi's indirect wholly-owned holding company. With a current market capitalization of $1.1 billion and a "Fair" overall financial health score according to InvestingPro, the company faces challenges with short-term obligations exceeding liquid assets.
The sales were part of a series of transactions related to the expiration and exercise of capped call agreements with a financial institution, which involved the repayment of debt through the delivery of shares. For deeper insights into Altice USA's financial health and detailed analysis, including 8 additional ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, Altice-USA has been the focus of several developments. The company's Q3 2024 performance report showed strong subscriber growth in its fiber and mobile segments, with ambitious near-term targets set. Altice-USA reported Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million. The company added 47,000 new fiber customers in Q3, bringing the total to 482,000, and grew its mobile services with 36,000 new lines, totaling 420,000.
TD Cowen adjusted its stance on Altice-USA shares, reducing the price target to $3.50 from the previous $6.00, but maintained a Buy rating. The firm's analysis suggests the new targets set by Altice-USA are achievable, despite a lower capex forecast potentially slowing the rollout of fiber-to-the-home infrastructure. TD Cowen also noted that the lowered EBITDA suggests a potentially weaker financial position for any operational turnaround.
These are recent developments that underscore Altice-USA's focus on growing its fiber and mobile subscriber bases, aiming for over 1 million customers in each segment by 2026 and 2027, respectively. The company maintains a strong liquidity position with no debt maturities until 2027. Despite challenges, Altice-USA continues to focus on operational excellence and market strategy evolution.
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