Charter Communications (NASDAQ:CHTR) Hits New 1-Year Low - Should You Sell?

Key Points

• Charter Communications' stock reached a new 52-week low at $259.88, with a market capitalization of $35.60 billion and a P/E ratio of 7.14.
• Analysts have mixed ratings on its stock, with three maintaining a sell rating, while nine have a buy rating, resulting in a consensus rating of "Hold" and a target price of $410.59.
• The company reported earnings of $9.18 per share, which missed expectations by ($0.88), despite a slight year-over-year revenue increase of 0.6%.

Charter Communications, Inc. (NASDAQ:CHTR - Get Free Report)'s share price hit a new 52-week low on Thursday . The company traded as low as $260.25 and last traded at $259.88, with a volume of 139618 shares changing hands. The stock had previously closed at $262.04.

Analyst Upgrades and Downgrades

Several research analysts recently commented on CHTR shares. Oppenheimer raised Charter Communications from a "market perform" rating to an "outperform" rating and set a $500.00 target price for the company in a research report on Friday, May 16th. Bank of America boosted their target price on Charter Communications from $450.00 to $500.00 and gave the stock a "buy" rating in a research report on Tuesday, July 1st. Wall Street Zen raised Charter Communications from a "hold" rating to a "buy" rating in a research note on Thursday, May 1st. Arete Research upgraded Charter Communications to a "strong sell" rating in a research report on Tuesday, July 8th. Finally, Raymond James Financial raised Charter Communications from an "underperform" rating to a "market perform" rating in a research note on Monday, May 19th. Three analysts have rated the stock with a sell rating, eight have given a hold rating and nine have assigned a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $410.59.

Charter Communications Stock Performance

The firm has a market capitalization of $35.60 billion, a P/E ratio of 7.14, a price-to-earnings-growth ratio of 0.59 and a beta of 1.02. The company's 50 day moving average is $373.80 and its 200-day moving average is $369.23. The company has a quick ratio of 0.33, a current ratio of 0.33 and a debt-to-equity ratio of 4.57.

Charter Communications (NASDAQ:CHTR - Get Free Report) last posted its earnings results on Friday, July 25th. The company reported $9.18 EPS for the quarter, missing the consensus estimate of $10.06 by ($0.88). Charter Communications had a return on equity of 26.77% and a net margin of 9.53%. The business had revenue of $13.77 billion for the quarter, compared to the consensus estimate of $13.76 billion. During the same period in the previous year, the firm earned $8.49 earnings per share. The company's revenue was up .6% on a year-over-year basis. As a group, equities analysts anticipate that Charter Communications, Inc. will post 38.16 EPS for the current year.

Insider Buying and Selling at Charter Communications

In related news, Director Balan Nair acquired 360 shares of the firm's stock in a transaction that occurred on Thursday, July 31st. The shares were bought at an average cost of $274.21 per share, for a total transaction of $98,715.60. Following the completion of the transaction, the director owned 9,622 shares in the company, valued at approximately $2,638,448.62. This trade represents a 3.89% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Christopher L. Winfrey acquired 3,670 shares of the company's stock in a transaction dated Thursday, July 31st. The shares were bought at an average cost of $273.10 per share, with a total value of $1,002,277.00. Following the completion of the acquisition, the chief executive officer directly owned 70,243 shares in the company, valued at $19,183,363.30. The trade was a 5.51% increase in their position. The disclosure for this purchase can be found here. 0.83% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Charter Communications

Hedge funds and other institutional investors have recently modified their holdings of the company. Atlantic Union Bankshares Corp bought a new stake in Charter Communications in the 2nd quarter worth approximately $25,000. Salem Investment Counselors Inc. lifted its holdings in shares of Charter Communications by 2,033.3% in the 2nd quarter. Salem Investment Counselors Inc. now owns 64 shares of the company's stock worth $26,000 after acquiring an additional 61 shares during the last quarter. Ameritas Advisory Services LLC purchased a new stake in shares of Charter Communications in the 2nd quarter valued at $28,000. SouthState Corp bought a new position in shares of Charter Communications during the 1st quarter valued at $25,000. Finally, Family CFO Inc purchased a new position in Charter Communications in the 2nd quarter worth $33,000. 81.76% of the stock is currently owned by hedge funds and other institutional investors.

About Charter Communications

Charter Communications, Inc operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. The company offers subscription-based internet, video, and mobile and voice services; a suite of broadband connectivity services, including fixed internet, WiFi, and mobile; Advanced WiFi services; Spectrum Security Shield; in-home WiFi, which provides customers with high performance wireless routers and managed WiFi services to enhance their fixed wireless internet experience; out-of-home WiFi; and Spectrum WiFi services.

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