Altice USA, Inc. (NYSE:ATUS) major shareholder and director Patrick Durhey has sold a substantial portion of his holdings in the company. On November 20, 2024, Darahi made several sales of Class A common stock, totaling approximately $19.7 million. Shares traded in a range of $23.3164 to $25.6836.
Following these transactions, Drahi’s holdings in Altice USA were reduced, leaving 24,366,912 shares. Drahi, through its holding company Next (LON:) Alt Sarl holds a significant stake in Altice USA, reflecting its continued involvement with the company.
The transactions were part of a broader strategy involving existing European capped call transactions, the filing said. The sale was made to pay off debt related to these financial agreements.
In other recent news, Altice-USA has been in the spotlight following its Q3 2024 performance. The company reported a significant increase in mobile services revenue and added 47,000 new fiber customers, bringing the total to 482,000. Altice-USA also reported the addition of 36,000 new mobile lines, for a total of 420,000. Despite these developments, TD Cowen lowered its price target for Altice-USA due to mixed financial indicators, although the firm maintained a buy rating on the stock.
Altice-USA has set near-term goals, including a reduction in capital expenditures and an EBITDA margin of around 40% by 2025. However, this reduced capex forecast is expected to slow the rollout of fiber-to-the-home infrastructure. The company posted Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million, while maintaining a strong liquidity position with no debt maturing through 2027.
Despite the challenges, Altice-USA remains committed to its strategic direction, focusing on operational excellence and market strategy evolution. The company’s plans include expanding its fiber and mobile subscriber base to over one million subscribers by 2026 and 2027, respectively. These recent developments mark Altice-USA’s growth in the dynamic telecommunications market.
InvestingPro Insights
In light of Patrick Drahi’s recent stock sale, it is worth reviewing Altice USA’s current financial position and market performance. According to data from InvestingPro, Altice USA has a market capitalization of $1.2 billion, which reflects the current value of the company in the market.
Despite the recent insider selling, InvestingPro Tips suggests 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 anticipated sale of debt, as it reflects the company’s ability to generate cash relative to its market value.
Another investing pro tip highlights that Altice USA’s stock price movements are quite volatile. This volatility is reflected in the company’s recent price performance, with a strong return of 32.97% over the last three months, in contrast to a year-to-date decline of 25.54%. Such fluctuations may present both risks and opportunities to investors following the Darahi transaction.
It’s worth noting that InvestingPro offers 8 additional tips for Altice USA, providing a more comprehensive analysis for investors interested in delving deeper into the company’s prospects.
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