Optimum Communications (NYSE:OPTU) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Optimum Communications to “strong sell” from “hold,” while the broader analyst consensus remains “Reduce” with a $0.92 target price.
• The company continues to face significant profitability concerns: it reported a quarterly loss of $0.67 per share versus the $0.17 consensus estimate, and analysts expect losses through at least 2028.
• OPTU shares opened at $0.94 and remain below their 50-day and 200-day moving averages; however, insiders have purchased more than 3 million shares over the past 90 days.

Optimum Communications (NYSE:OPTU - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Monday, Zacks reports. Zacks Research also issued estimates for Optimum Communications' Q3 2026 earnings at ($0.17) EPS, Q4 2026 earnings at ($0.10) EPS, FY2026 earnings at ($0.56) EPS, Q2 2027 earnings at ($0.21) EPS, Q3 2027 earnings at ($0.17) EPS, Q4 2027 earnings at ($0.21) EPS, FY2027 earnings at ($0.82) EPS, Q1 2028 earnings at ($0.52) EPS, Q2 2028 earnings at ($0.30) EPS and FY2028 earnings at ($0.67) EPS.

Other equities analysts have also recently issued research reports about the company. Weiss Ratings raised Optimum Communications from a "sell (e+)" rating to a "sell (d-)" rating in a report on Thursday, August 27th. The Goldman Sachs Group set a $1.00 price objective on Optimum Communications in a research report on Friday, May 8th. BNP Paribas Exane upgraded Optimum Communications from an "underperform" rating to a "neutral" rating in a research note on Tuesday, June 2nd. Evercore set a $1.25 target price on Optimum Communications in a research report on Tuesday, May 12th. Finally, Citigroup downgraded shares of Optimum Communications from a "neutral" rating to a "sell" rating and decreased their price target for the stock from $1.50 to $0.50 in a research note on Friday, May 15th. Five research analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, Optimum Communications presently has an average rating of "Reduce" and a consensus target price of $0.92.

Optimum Communications Price Performance

NYSE OPTU opened at $0.94 on Monday. The company's fifty day moving average is $1.00 and its two-hundred day moving average is $1.19. Optimum Communications has a 52-week low of $0.58 and a 52-week high of $2.79. The firm has a market capitalization of $257.33 million, a price-to-earnings ratio of -0.09 and a beta of 1.25.

Optimum Communications (NYSE:OPTU - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.67) earnings per share for the quarter, missing the consensus estimate of ($0.17) by ($0.50). The company had revenue of $2.02 billion for the quarter. As a group, sell-side analysts expect that Optimum Communications will post -0.82 earnings per share for the current fiscal year.

Insider Buying and Selling at Optimum Communications

In related news, major shareholder Neil S. Subin bought 171,711 shares of the company's stock in a transaction dated Monday, August 24th. The stock was acquired at an average cost of $0.83 per share, with a total value of $142,520.13. Following the acquisition, the insider owned 19,548,909 shares in the company, valued at approximately $16,225,594.47. This represents a 0.89% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In the last 90 days, insiders purchased 3,032,354 shares of company stock valued at $2,455,613. Corporate insiders own 43.40% of the company's stock.

Institutional Trading of Optimum Communications

Several institutional investors have recently bought and sold shares of OPTU. Voleon Capital Management LP acquired a new position in Optimum Communications during the third quarter worth $31,000. Morningstar Investment Management LLC acquired a new stake in shares of Optimum Communications in the 3rd quarter valued at $39,000. Cibc World Markets Corp acquired a new stake in shares of Optimum Communications in the 4th quarter valued at $29,000. Xponance LLC bought a new stake in shares of Optimum Communications in the 4th quarter worth about $34,000. Finally, Mariner LLC acquired a new stake in shares of Optimum Communications during the 4th quarter worth about $39,000. Institutional investors and hedge funds own 54.85% of the company's stock.

Optimum Communications News Summary

Here are the key news stories impacting Optimum Communications this week:

• Positive Sentiment: Optimum’s expanded T-Mobile relationship strengthens its mobile and 5G offering, potentially improving customer retention and creating longer-term growth opportunities.
• Neutral Sentiment: Zacks Research made a small upward revision to its FY2028 EPS forecast, to a loss of $0.67 from a projected loss of $0.70. However, the company is still expected to remain unprofitable through that year.
• Negative Sentiment: Zacks lowered its EPS forecasts for FY2026 to a loss of $0.56 from $0.55 and for FY2027 to a loss of $0.82 from $0.72. It also reduced estimates for Q4 2026, Q2 2027, Q3 2027, Q4 2027, Q1 2028 and Q2 2028, indicating weaker expected profitability across much of the forecast period.
• Negative Sentiment: The revisions reinforce concerns about Optimum’s earnings outlook. The company previously reported a quarterly loss of $0.67 per share, substantially worse than the $0.17 analyst consensus, and its shares remain below both their 50-day and 200-day moving averages.

Optimum Communications Company Profile

Altice USA, Inc, together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company's video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source