Charter Communications (NASDAQ:CHTR) Earns "Underperform" Rating from Wolfe Research

Key Points

• Wolfe Research reaffirmed an “underperform” rating on Charter Communications and set a $118 price target, implying approximately 19% downside from the stock’s $145.77 price.
• Analyst sentiment remains cautious overall: Charter has an average “Reduce” rating and a consensus price target of $216.56, based on five Buy, nine Hold, and seven Sell ratings.
• Charter exceeded quarterly earnings expectations with EPS of $10.66 versus $9.98 forecast and revenue of $13.53 billion, although revenue declined 1.7% year over year; institutional investors own 81.76% of the stock.

Charter Communications (NASDAQ:CHTR - Get Free Report)'s stock had its "underperform" rating reaffirmed by Wolfe Research in a research report issued to clients and investors on Monday, Benzinga reports. They presently have a $118.00 price objective on the stock. Wolfe Research's price target suggests a potential downside of 19.05% from the company's current price.

Other research analysts have also recently issued reports about the stock. Wells Fargo & Company lowered their price target on shares of Charter Communications from $160.00 to $101.00 and set an "underweight" rating on the stock in a report on Monday, July 27th. Zacks Research upgraded Charter Communications from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 4th. Benchmark reaffirmed a "buy" rating on shares of Charter Communications in a report on Wednesday, July 22nd. TD Cowen cut their price target on Charter Communications from $413.00 to $380.00 and set a "buy" rating for the company in a research note on Monday, July 27th. Finally, Freedom Capital raised Charter Communications to a "hold" rating in a report on Friday, June 12th. Five equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and seven have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $216.56.

Charter Communications Stock Performance

NASDAQ:CHTR opened at $145.77 on Monday. The business has a 50 day moving average price of $143.65 and a two-hundred day moving average price of $168.14. The company has a quick ratio of 0.36, a current ratio of 0.36 and a debt-to-equity ratio of 4.32. Charter Communications has a twelve month low of $111.55 and a twelve month high of $285.82. The company has a market cap of $17.39 billion, a P/E ratio of 3.79, a price-to-earnings-growth ratio of 0.31 and a beta of 0.69.

Charter Communications (NASDAQ:CHTR - Get Free Report) last posted its quarterly earnings results on Friday, July 24th. The company reported $10.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $9.98 by $0.68. The firm had revenue of $13.53 billion for the quarter, compared to analyst estimates of $13.51 billion. Charter Communications had a net margin of 9.05% and a return on equity of 23.71%. The company's quarterly revenue was down 1.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $9.18 earnings per share. As a group, analysts expect that Charter Communications will post 42.72 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in CHTR. Sequoia Financial Advisors LLC lifted its stake in Charter Communications by 10.8% during the second quarter. Sequoia Financial Advisors LLC now owns 4,745 shares of the company's stock worth $675,000 after purchasing an additional 463 shares during the last quarter. Tidal Investments LLC increased its stake in shares of Charter Communications by 737.5% in the 2nd quarter. Tidal Investments LLC now owns 241,503 shares of the company's stock valued at $34,344,000 after purchasing an additional 212,668 shares during the last quarter. MCF Advisors LLC raised its holdings in shares of Charter Communications by 106.5% during the 2nd quarter. MCF Advisors LLC now owns 223 shares of the company's stock worth $32,000 after buying an additional 115 shares in the last quarter. Engineers Gate Manager LP lifted its position in shares of Charter Communications by 569.0% during the 2nd quarter. Engineers Gate Manager LP now owns 13,407 shares of the company's stock worth $1,907,000 after buying an additional 11,403 shares during the last quarter. Finally, Cidel Asset Management Inc. lifted its position in shares of Charter Communications by 36.3% during the 2nd quarter. Cidel Asset Management Inc. now owns 5,076 shares of the company's stock worth $722,000 after buying an additional 1,351 shares during the last quarter. 81.76% of the stock is owned by institutional investors.

Charter Communications Company Profile

Charter Communications, Inc is a telecommunications and media company that operates under the Spectrum brand. Its primary business is providing broadband internet, video, mobile, and voice services to residential customers across the United States. Charter also offers communications and managed services to businesses, including internet access, data networking, phone, video, and fiber-based connectivity solutions.

The company's consumer offerings include high-speed internet, traditional and streaming-enabled television services, mobile wireless plans, and home phone services.

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