Optimum Communications, Inc. (NYSE:OPTU) Receives Average Rating of "Reduce" from Brokerages

Key Points

• Analysts remain bearish: Optimum Communications has a consensus “Reduce” rating, with four sell ratings and five holds. The average 12-month price target is $0.9167, below the reported trading price of $1.02.
• Financial results missed expectations: The company reported a quarterly loss of $0.67 per share versus the consensus estimate of a $0.17 loss, despite generating $2.02 billion in revenue.
• Insider buying contrasts with weak sentiment: Major shareholder Neil S. Subin purchased 1.29 million shares, while insiders bought more than 3 million shares over the past 90 days. Insiders own 43.4% of the company, and institutional investors own 54.85%.

Optimum Communications, Inc. (NYSE:OPTU - Get Free Report) has been given a consensus recommendation of "Reduce" by the nine research firms that are currently covering the firm, Marketbeat reports. Four investment analysts have rated the stock with a sell rating and five have given a hold rating to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $0.9167.

Several analysts recently weighed in on the stock. BNP Paribas Exane upgraded shares of Optimum Communications from an "underperform" rating to a "neutral" rating in a research report on Tuesday, June 2nd. Weiss Ratings cut shares of Optimum Communications from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, September 11th. Wall Street Zen lowered shares of Optimum Communications from a "sell" rating to a "strong sell" rating in a research note on Sunday, July 26th. Wells Fargo & Company cut their price target on Optimum Communications from $1.00 to $0.75 and set an "underweight" rating on the stock in a report on Tuesday, August 11th. Finally, Zacks Research downgraded Optimum Communications from a "hold" rating to a "strong sell" rating in a research report on Monday, August 31st.

Optimum Communications Price Performance

Optimum Communications stock traded down $0.01 during midday trading on Friday, hitting $1.02. 286,641 shares of the stock were exchanged, compared to its average volume of 5,418,056. Optimum Communications has a 1 year low of $0.58 and a 1 year high of $2.79. The firm has a market cap of $279.38 million, a P/E ratio of -0.10 and a beta of 1.25. The company has a 50 day moving average price of $0.92 and a two-hundred day moving average price of $1.14.

Optimum Communications (NYSE:OPTU - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.67) EPS for the quarter, missing the consensus estimate of ($0.17) by ($0.50). The firm had revenue of $2.02 billion during the quarter. As a group, analysts predict that Optimum Communications will post -0.83 EPS for the current year.

Insider Activity

In other news, major shareholder Neil S. Subin bought 1,291,471 shares of the firm's stock in a transaction that occurred on Wednesday, August 19th. The stock was acquired at an average price of $0.84 per share, with a total value of $1,084,835.64. Following the completion of the purchase, the insider directly owned 18,791,471 shares of the company's stock, valued at $15,784,835.64. This represents a 7.38% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Insiders have purchased 3,032,354 shares of company stock valued at $2,455,613 in the last ninety days. Company insiders own 43.40% of the company's stock.

Institutional Investors Weigh In On Optimum Communications

Large investors have recently made changes to their positions in the company. Engineers Gate Manager LP boosted its stake in shares of Optimum Communications by 2,392.3% during the 2nd quarter. Engineers Gate Manager LP now owns 266,771 shares of the company's stock worth $387,000 after acquiring an additional 256,067 shares in the last quarter. Cidel Asset Management Inc. lifted its holdings in shares of Optimum Communications by 139.7% during the second quarter. Cidel Asset Management Inc. now owns 58,484 shares of the company's stock worth $85,000 after buying an additional 34,084 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new position in Optimum Communications in the 2nd quarter valued at approximately $86,000. Corient Private Wealth LP raised its holdings in Optimum Communications by 32.0% in the 2nd quarter. Corient Private Wealth LP now owns 278,520 shares of the company's stock valued at $404,000 after acquiring an additional 67,506 shares in the last quarter. Finally, Segall Bryant & Hamill LLC bought a new stake in shares of Optimum Communications in the 1st quarter worth approximately $54,000. Institutional investors and hedge funds own 54.85% of the company's stock.

Optimum Communications Company Profile

Optimum Communications, Inc is a telecommunications and broadband services provider operating under the Optimum brand. The company offers high-speed internet, video and television services, mobile connectivity, digital voice, and related communications products to residential customers. It also provides internet, phone, networking, and other connectivity solutions for businesses and organizations.

The company's operations are concentrated in the United States, serving customers across a range of metropolitan and regional markets.

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