Patrick Drahi, a significant shareholder and director at Altice USA, Inc. (NYSE:ATUS), has reported selling a substantial amount of the company's Class A common stock. According to the latest SEC filing, Drahi sold 805,230 shares on December 19, 2024, generating approximately $19.7 million. The shares were sold at prices ranging from $23.3164 to $25.6836. The stock currently trades at $2.64, with InvestingPro analysis indicating significant volatility in price movements. Despite current challenges, analysts project a return to profitability this year.
Following these transactions, Drahi's direct ownership in Altice USA stands at 8,262,342 shares. These sales were part of a series of transactions that also involved the exercise and expiration of capped call options, which did not result in additional cash proceeds. The company, with a market capitalization of $1.2 billion, maintains a high gross profit margin of 68%, though InvestingPro data reveals short-term liquidity challenges. For deeper insights into Altice USA's financial health and additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.
The transactions were executed through Next (LON:NXT) Alt S.a.r.l., Drahi's personal holding company. Next Alt maintains certain rights to appoint directors to Altice USA's board, underscoring Drahi's influential role in the company. With an EBITDA of $3.4 billion in the last twelve months and a debt-heavy capital structure, Altice USA faces both challenges and opportunities in its path forward.
In other recent news, Altice USA has been making significant strides in its operations and financial standing. The company has reported a Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million, indicating a robust financial performance. Altice USA has also shown strong growth in its fiber and mobile segments, adding 47,000 new fiber customers and 36,000 new mobile lines in Q3. The company's aim is to grow these customer bases to over 1 million by 2026 and 2027, respectively.
In a recent development, the company's Compensation Committee approved a cash performance award valued at $5 million for its CEO, Dennis Mathew. This award is contingent upon the achievement of specific financial targets for the fiscal year 2027, aligning executive compensation with the company's performance and shareholder interests.
Altice USA also announced the departure of Colleen Schmidt, Executive Vice President, Human Resources, who will transition to a Senior Advisor role to the CEO until her separation from the company in March 2025. In terms of analyst outlooks, Citi analysts have maintained their Buy rating on Altice USA, citing opportunities for cost reduction and positive price actions in 2025. Despite reducing its price target, TD Cowen continues its Buy rating based on the company's Q3 2024 performance and future goals. These are the recent developments in Altice USA's business trajectory.
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