Altice USA (NYSE:ATUS) Downgraded by Zacks Investment Research

Altice USA (NYSE:ATUS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday, reports. They currently have a $21.00 price objective on the stock. Zacks Investment Research‘s price target would suggest a potential upside of 8.42% from the company’s previous close.

According to Zacks, “Altice is focused on driving its 1-gig and fiber-to-the-home (FTTH) deployments for long-term sustainable growth. Driven by broadband strength and new customer additions, it is confident of delivering revenue and adjusted EBITDA growth in 2021. The Morris Broadband buyout has extended Altice’s footprint in North Carolina. With greater market penetration, it has covered nearly 1.1 million households with FTTH technology by the end of the second quarter. The corporate rebranding exercise is likely to better resonate its objectives and offer seamless connectivity to all users. However, high programming costs hurt its operating margin. As consumers tend to select a cheaper alternative source of service due to economic constraints, Altice’s growth potential is likely to be hampered. Stiff competition from major players is another headwind.”

Other analysts have also recently issued reports about the company. Wells Fargo & Company decreased their price objective on Altice USA from $37.00 to $34.00 and set an “equal weight” rating on the stock in a report on Thursday, July 29th. HSBC raised Altice USA from a “hold” rating to a “buy” rating and set a $35.00 target price on the stock in a research report on Friday, August 6th. JPMorgan Chase & Co. cut their target price on Altice USA from $40.00 to $30.00 and set an “overweight” rating on the stock in a research report on Friday. Raymond James downgraded Altice USA from an “outperform” rating to a “market perform” rating in a research report on Monday. Finally, Credit Suisse Group downgraded Altice USA from an “outperform” rating to a “neutral” rating and dropped their price target for the stock from $46.00 to $24.00 in a research report on Monday. Three research analysts have rated the stock with a sell rating, eight have assigned a hold rating and seven have given a buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $34.79.

ATUS stock traded down $0.01 on Tuesday, reaching $19.37. 521,682 shares of the company traded hands, compared to its average volume of 4,393,679. Altice USA has a one year low of $19.21 and a one year high of $38.30. The company has a market cap of $8.85 billion, a P/E ratio of 12.11 and a beta of 1.08. The firm has a fifty day simple moving average of $28.46 and a 200-day simple moving average of $32.51.

Altice USA (NYSE:ATUS) last released its quarterly earnings data on Tuesday, July 27th. The company reported $0.51 EPS for the quarter, topping the consensus estimate of $0.47 by $0.04. The company had revenue of $2.52 billion during the quarter, compared to the consensus estimate of $2.52 billion. Altice USA had a negative return on equity of 129.77% and a net margin of 8.00%. As a group, sell-side analysts forecast that Altice USA will post 1.93 earnings per share for the current fiscal year.

In related news, EVP Michael Olsen sold 3,000 shares of the business’s stock in a transaction on Monday, August 2nd. The stock was sold at an average price of $30.97, for a total transaction of $92,910.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold 9,000 shares of company stock valued at $278,310 over the last ninety days. Insiders own 53.10% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Ossiam acquired a new stake in shares of Altice USA in the 1st quarter worth approximately $56,000. Deseret Mutual Benefit Administrators acquired a new stake in Altice USA during the 2nd quarter valued at $86,000. Dark Forest Capital Management LP acquired a new stake in Altice USA during the 2nd quarter valued at $103,000. Advisory Services Network LLC acquired a new stake in Altice USA during the 2nd quarter valued at $154,000. Finally, Verdence Capital Advisors LLC acquired a new stake in Altice USA during the 1st quarter valued at $202,000. Institutional investors own 54.85% of the company’s stock.

Altice USA Company Profile

Altice USA, Inc engages in the provision of broadband, pay television, telephony services, proprietary content, and advertising services. Its brands include Optimum, Suddenlink, Lightpath, AMS, News 12 Networks, and News 12 Varsity. The firm operates through the Cablevision and Cequel business operations.

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