Charter Communications (NASDAQ:CHTR) Shares Gap Down on Disappointing Earnings

Key Points

• Charter Communications experienced a significant drop in share price, opening at $329.00 after closing at $380.00, following disappointing earnings results.
• The company's earnings per share (EPS) was reported at $9.18, missing analysts' estimates of $10.06, while revenue slightly exceeded expectations at $13.77 billion.
• Several analyst firms have downgraded Charter Communications, with a consensus rating of "Hold" and a target price of $422.37.
• Institutional investors own 81.76% of Charter Communications stock, indicating significant interest from larger investment entities.

Charter Communications, Inc. (NASDAQ:CHTR - Get Free Report)'s share price gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $380.00, but opened at $329.00. Charter Communications shares last traded at $315.11, with a volume of 1,638,809 shares.

The company reported $9.18 EPS for the quarter, missing analysts' consensus estimates of $10.06 by ($0.88). The business had revenue of $13.77 billion for the quarter, compared to analyst estimates of $13.76 billion. Charter Communications had a return on equity of 27.70% and a net margin of 9.42%. The company's revenue was up .6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $8.49 earnings per share.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on CHTR. Sanford C. Bernstein downgraded shares of Charter Communications from an "outperform" rating to a "market perform" rating and set a $410.00 price target on the stock. in a report on Monday, June 2nd. Wall Street Zen upgraded shares of Charter Communications from a "hold" rating to a "buy" rating in a report on Thursday, May 1st. UBS Group boosted their target price on Charter Communications from $400.00 to $425.00 and gave the stock a "neutral" rating in a report on Wednesday, June 18th. Wolfe Research upgraded Charter Communications from an "underperform" rating to a "peer perform" rating in a report on Friday, June 20th. Finally, Arete Research upgraded Charter Communications to a "strong sell" rating in a report on Tuesday, July 8th. Three equities research analysts have rated the stock with a sell rating, ten have given a hold rating and nine have issued a buy rating to the company. According to MarketBeat.com, Charter Communications currently has a consensus rating of "Hold" and a consensus target price of $422.37.

Hedge Funds Weigh In On Charter Communications

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Gamco Investors INC. ET AL boosted its stake in Charter Communications by 0.8% in the first quarter. Gamco Investors INC. ET AL now owns 3,128 shares of the company's stock worth $1,153,000 after purchasing an additional 25 shares in the last quarter. Allworth Financial LP boosted its stake in Charter Communications by 10.5% in the first quarter. Allworth Financial LP now owns 283 shares of the company's stock worth $104,000 after purchasing an additional 27 shares in the last quarter. Hemington Wealth Management boosted its stake in Charter Communications by 24.3% in the first quarter. Hemington Wealth Management now owns 143 shares of the company's stock worth $52,000 after purchasing an additional 28 shares in the last quarter. Cooper Financial Group boosted its stake in Charter Communications by 2.3% in the second quarter. Cooper Financial Group now owns 1,260 shares of the company's stock worth $515,000 after purchasing an additional 28 shares in the last quarter. Finally, Brown Brothers Harriman & Co. lifted its stake in shares of Charter Communications by 37.7% during the fourth quarter. Brown Brothers Harriman & Co. now owns 106 shares of the company's stock valued at $36,000 after acquiring an additional 29 shares during the period. Institutional investors and hedge funds own 81.76% of the company's stock.

Charter Communications Stock Down 17.3%

The company has a debt-to-equity ratio of 4.54, a current ratio of 0.36 and a quick ratio of 0.36. The firm has a market cap of $44.11 billion, a price-to-earnings ratio of 8.79, a price-to-earnings-growth ratio of 0.43 and a beta of 1.08. The firm has a 50 day moving average price of $398.47 and a 200-day moving average price of $373.49.

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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