Patrick Drahi, a director and significant shareholder of Altice USA, Inc. (NYSE:ATUS), has recently sold a substantial amount of the company's Class A common stock. According to a recent filing, Drahi sold a total of 805,227 shares, amounting to approximately $19.7 million. The shares were sold at prices ranging from $23.3164 to $25.6836 per share.
Following these transactions, Drahi, through his holding company Next (LON:NXT) Alt S.a.r.l., retains a significant stake in Altice USA, with over 31.6 million shares remaining. The sales were part of a series of transactions executed on November 7, 2024, as reported in the SEC filing.
The transactions also involved the exercise of call options, which did not involve any cash exchange, reflecting a strategic move in managing the existing bilateral European capped call transactions. These options were exercised as part of a broader financial arrangement to repay debt associated with the capped calls.
In other recent news, Altice-USA reported mixed financial results for its third-quarter 2024 performance. Despite a decline in total and residential revenue, the company saw a significant increase in mobile services revenue. Q3 revenue clocked in at $2.2 billion with an adjusted EBITDA of $862 million. Altice-USA added 47,000 new fiber customers and 36,000 new mobile lines, reaching totals of 482,000 and 420,000, respectively.
TD Cowen adjusted its stance on Altice-USA shares, reducing the price target to $3.50 from $6.00, but continued to recommend a Buy rating. The firm's analysis indicates that the new targets set by Altice-USA, including substantial increases in mobile and fiber subscriber additions, appear achievable. However, the reduced capital expenditures forecast for 2025 is expected to slow the rollout of fiber-to-the-home infrastructure.
Altice-USA is focused on growing its fiber and mobile subscriber bases, aiming for over 1 million customers in each segment by 2026 and 2027, respectively. These recent developments highlight the company's commitment to operational improvements, strategic growth, and enhancing customer experience.
InvestingPro Insights
While Patrick Drahi's recent stock sale might raise eyebrows, a closer look at Altice USA's financial metrics and market performance provides additional context for investors. According to InvestingPro data, Altice USA's market capitalization stands at $1.17 billion, reflecting the company's current valuation in the market.
Despite the director's sale, InvestingPro Tips suggest that Altice USA's valuation implies a strong free cash flow yield, which could be attractive to value-oriented investors. This metric is particularly relevant given the recent stock transactions by a major shareholder, as it indicates the company's ability to generate cash relative to its market value.
Interestingly, Altice USA has shown a strong return over the last three months, with InvestingPro data revealing a remarkable 61.35% price total return in that period. This significant uptick might explain the timing of Drahi's stock sale, potentially capitalizing on the recent price surge.
It's worth noting that analysts predict the company will be profitable this year, according to another InvestingPro Tip. This projection could provide some reassurance to investors concerned about the insider selling activity.
For those seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could be valuable in assessing Altice USA's financial health and market position. In fact, there are 8 more InvestingPro Tips available for Altice USA, providing a broader perspective on the company's outlook and potential risks.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.