Capital World Investors Cuts Stake in Charter Communications, Inc. $CHTR

Key Points

• Capital World Investors slashed its Charter Communications stake by 99.6% in the fourth quarter, selling more than 452,000 shares and leaving just 1,837 shares worth about $383,000.
• Charter reported mixed quarterly results, with EPS of $9.17 missing estimates while revenue of $13.60 billion came in slightly ahead of expectations; revenue was also down 1% from a year earlier.
• Sentiment remains cautious: analysts have a consensus rating of “Reduce” with a $290.38 price target, even as Charter executives have been buying shares in recent months.

Capital World Investors decreased its holdings in Charter Communications, Inc. (NASDAQ:CHTR - Free Report) by 99.6% in the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 1,837 shares of the company's stock after selling 452,254 shares during the period. Capital World Investors' holdings in Charter Communications were worth $383,000 as of its most recent SEC filing.

Other large investors have also added to or reduced their stakes in the company. Geneos Wealth Management Inc. grew its holdings in Charter Communications by 141.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 94 shares of the company's stock worth $35,000 after acquiring an additional 55 shares during the last quarter. Rakuten Securities Inc. grew its holdings in Charter Communications by 535.0% in the 2nd quarter. Rakuten Securities Inc. now owns 127 shares of the company's stock worth $52,000 after acquiring an additional 107 shares during the last quarter. Caitlin John LLC bought a new stake in Charter Communications in the 3rd quarter worth $41,000. MUFG Securities EMEA plc bought a new stake in Charter Communications in the second quarter valued at $116,000. Finally, Brown Brothers Harriman & Co. boosted its holdings in Charter Communications by 100.7% in the third quarter. Brown Brothers Harriman & Co. now owns 291 shares of the company's stock valued at $80,000 after acquiring an additional 146 shares in the last quarter. Institutional investors own 81.76% of the company's stock.

Analyst Ratings Changes

CHTR has been the subject of several research analyst reports. JPMorgan Chase & Co. began coverage on shares of Charter Communications in a research report on Wednesday, April 29th. They issued a "neutral" rating and a $215.00 target price for the company. Zacks Research raised shares of Charter Communications from a "strong sell" rating to a "hold" rating in a research note on Monday, February 16th. New Street Research cut their target price on shares of Charter Communications from $328.00 to $302.00 and set a "buy" rating on the stock in a research note on Wednesday, May 20th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Charter Communications in a research note on Friday, March 27th. Finally, Benchmark cut their target price on shares of Charter Communications from $455.00 to $435.00 and set a "buy" rating on the stock in a research note on Thursday, April 23rd. Five analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and six have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus price target of $290.38.

Charter Communications Stock Up 1.8%

Shares of Charter Communications stock opened at $137.79 on Thursday. The company has a debt-to-equity ratio of 4.56, a current ratio of 0.40 and a quick ratio of 0.40. The company has a 50-day moving average of $176.45 and a 200 day moving average of $200.03. The firm has a market cap of $16.95 billion, a price-to-earnings ratio of 3.72, a PEG ratio of 0.23 and a beta of 0.71. Charter Communications, Inc. has a 1 year low of $126.70 and a 1 year high of $422.29.

Charter Communications (NASDAQ:CHTR - Get Free Report) last issued its quarterly earnings results on Friday, April 24th. The company reported $9.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $10.01 by ($0.84). The business had revenue of $13.60 billion during 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 firm's revenue was down 1.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $8.42 earnings per share. As a group, sell-side analysts anticipate that Charter Communications, Inc. will post 43 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Charter Communications news, CEO Christopher L. Winfrey purchased 3,468 shares of the firm's stock in a transaction that occurred on Tuesday, April 28th. The stock was bought at an average cost of $172.23 per share, for a total transaction of $597,293.64. Following the purchase, the chief executive officer directly owned 74,409 shares in the company, valued at $12,815,462.07. The trade was a 4.89% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Mauricio Ramos bought 9,929 shares of the company's stock in a transaction on Friday, May 15th. The stock was bought at an average cost of $140.93 per share, for a total transaction of $1,399,293.97. Following the completion of the acquisition, the director directly owned 19,309 shares of the company's stock, valued at approximately $2,721,217.37. This represents a 105.85% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 20,125 shares of company stock worth $3,167,116 over the last 90 days. Corporate insiders own 1.10% of the company's stock.

Charter Communications 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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