Next (LON:NXT) Alt S.a.r.l., an entity controlled by Patrick Drahi, reported significant stock sales of Altice USA, Inc. (NYSE:ATUS) shares. On November 19, Drahi sold a total of 805,227 shares of Class A common stock, generating approximately $19.7 million. The shares were sold at prices ranging from $23.3164 to $25.6836 per share.
Following these transactions, Drahi, who serves as a director and is a significant shareholder of Altice USA, now holds 25,172,139 shares directly. The sales are part of a series of transactions related to the expiration of existing capped call agreements, as detailed in the filing.
In other recent news, Altice-USA reported a mix of financial indicators in its third-quarter 2024 performance. The company's Q3 report showed strong growth in its fiber and mobile segments, with new near-term targets set to increase mobile and fiber subscriber additions and reduce capital expenditures for 2025. Altice-USA aims to achieve EBITDA margins around 40%, though the exact timeline remains unspecified. Despite a lower price target set by TD Cowen, the firm maintains a Buy rating on Altice-USA's stock. The company reported Q3 revenue of $2.2 billion and an adjusted EBITDA of $862 million. Altice-USA added 47,000 new fiber customers and 36,000 new mobile lines in Q3, demonstrating a commitment to expanding its subscriber bases. However, the company's reduced capex forecast may slow the rollout of fiber-to-the-home infrastructure, according to TD Cowen's analysis. These are key developments in the company's recent performance and strategic direction.
InvestingPro Insights
Since Patrick Drahi's significant stock sales in November, Altice USA's (NYSE:ATUS) financial landscape has evolved considerably. According to InvestingPro data, the company's market capitalization has adjusted to $1.12 billion, reflecting the market's current valuation of the telecom provider.
Despite the recent stock sales by a major insider, InvestingPro Tips suggest that Altice USA's net income is expected to grow this year, and analysts predict the company will return to profitability. This positive outlook contrasts with the company's performance over the last twelve months, during which it was not profitable.
The stock's recent performance has been volatile, with InvestingPro data showing a strong 46.01% return over the last three months. However, this comes after a significant hit in the short term, with a 10.86% decline in the past week. This volatility aligns with an InvestingPro Tip highlighting that stock price movements for Altice USA are quite erratic.
From a valuation perspective, an InvestingPro Tip indicates that the current stock price implies a strong free cash flow yield, which could be attractive to value investors despite the recent insider selling activity.
For readers interested in a more comprehensive analysis, InvestingPro offers 5 additional tips for Altice USA, providing a deeper understanding of the company's financial health and market position.
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