Charter Communications (NASDAQ:CHTR) Reaches New 1-Year Low - Time to Sell?

Key Points

• 52-week low: Charter hit a new 52-week low of $158 (last $165.17) after reporting quarterly EPS of $9.17 vs. $10.01 expected, with revenue of $13.60B (down 1% YoY); the company also shows high leverage (debt-to-equity 4.56) and weak liquidity (current ratio 0.40).
• Mixed analyst view: The consensus rating is "Hold" with an average price target of $315.67, but analysts are split (6 Buy / 10 Hold / 6 Sell) and some firms like Goldman Sachs have cut their target to $185 and moved to a "sell" stance.
• Insider buying: CEO Christopher Winfrey and a director recently purchased shares (~3,468 and 1,000 shares at ~$172–$175), while institutional investors own roughly 81.76% of the stock.

Charter Communications, Inc. (NASDAQ:CHTR - Get Free Report)'s share price reached a new 52-week low on Friday . The company traded as low as $158.00 and last traded at $165.17, with a volume of 6129878 shares changing hands. The stock had previously closed at $158.65.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. KeyCorp reiterated a "sector weight" rating on shares of Charter Communications in a research note on Monday, January 26th. Williams Trading set a $437.00 target price on shares of Charter Communications in a research report on Monday, February 2nd. Weiss Ratings reiterated a "sell (d+)" rating on shares of Charter Communications in a research report on Friday, March 27th. The Goldman Sachs Group reduced their price target on shares of Charter Communications from $210.00 to $185.00 and set a "sell" rating on the stock in a research report on Monday, February 2nd. Finally, Zacks Research upgraded shares of Charter Communications from a "strong sell" rating to a "hold" rating in a research report on Monday, February 16th. Six investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and six have issued a Sell rating to the company. According to MarketBeat.com, Charter Communications presently has a consensus rating of "Hold" and an average price target of $315.67.

Charter Communications Stock Performance

The company has a debt-to-equity ratio of 4.56, a current ratio of 0.40 and a quick ratio of 0.39. The firm has a market capitalization of $20.92 billion, a P/E ratio of 4.46, a P/E/G ratio of 0.27 and a beta of 1.03. The stock's 50 day moving average is $219.14 and its two-hundred day moving average is $216.62.

Charter Communications (NASDAQ:CHTR - Get Free Report) last posted its quarterly earnings results on Friday, April 24th. The company reported $9.17 earnings per share for the quarter, missing analysts' consensus estimates of $10.01 by ($0.84). The business had revenue of $13.60 billion for the quarter, compared to the consensus estimate of $13.56 billion. Charter Communications had a return on equity of 24.20% and a net margin of 9.03%.The company's quarterly revenue was down 1.0% on a year-over-year basis. During the same period last year, the firm earned $8.42 earnings per share. As a group, equities analysts anticipate that Charter Communications, Inc. will post 43.56 earnings per share for the current fiscal year.

Insider Activity at Charter Communications

In related news, CEO Christopher L. Winfrey purchased 3,468 shares of Charter Communications stock in a transaction dated Tuesday, April 28th. The stock was bought at an average price of $172.23 per share, for a total transaction of $597,293.64. Following the completion of the acquisition, the chief executive officer directly owned 74,409 shares of the company's stock, valued at $12,815,462.07. This represents a 4.89% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Balan Nair purchased 1,000 shares of Charter Communications stock in a transaction dated Tuesday, April 28th. The stock was bought at an average price of $175.46 per share, with a total value of $175,460.00. Following the acquisition, the director directly owned 12,029 shares of the company's stock, valued at approximately $2,110,608.34. This trade represents a 9.07% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders bought 10,196 shares of company stock worth $1,767,822. 1.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Optimize Financial Inc acquired a new position in Charter Communications during the third quarter worth $1,557,000. Wealth Enhancement Advisory Services LLC raised its position in Charter Communications by 245.3% during the third quarter. Wealth Enhancement Advisory Services LLC now owns 14,717 shares of the company's stock worth $4,069,000 after acquiring an additional 10,455 shares in the last quarter. AustralianSuper Pty Ltd bought a new position in shares of Charter Communications in the third quarter valued at about $28,651,000. Rakuten Investment Management Inc. bought a new position in shares of Charter Communications in the third quarter valued at about $5,260,000. Finally, Estate Counselors LLC bought a new position in shares of Charter Communications in the third quarter valued at about $3,850,000. Institutional investors and hedge funds own 81.76% of the company's stock.

Charter Communications Company Profile

Charter Communications, Inc is a U.S.-based telecommunications and mass media company that provides broadband communications and video services to residential and business customers. Operating primarily under the Spectrum brand, the company offers high-speed internet, cable television, digital voice (phone) and wireless services, as well as managed and enterprise networking solutions for commercial customers. Charter's service portfolio targets both consumer and business markets with bundled and standalone offerings designed to meet streaming, connectivity and communications needs.

The company's consumer-facing products include Spectrum Internet, Spectrum TV and Spectrum Voice, while Spectrum Mobile provides wireless service through arrangements with national wireless carriers.

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