Charter Communications, Inc. $CHTR Shares Bought by Fulcrum Asset Management LLP

Key Points

• Fulcrum Asset Management sharply increased its Charter stake, adding 91,532 shares in Q3—a 3,149.8% increase—to own 94,438 shares valued at about $10.5 million. Institutional investors collectively hold 81.76% of the stock.
• Charter’s Q3 results were mixed: revenue rose 9.1% year over year to $14.92 billion and adjusted EPS beat consensus, but a $6.33 billion franchise impairment led to a reported GAAP loss of $20.50 per share. Worsening broadband customer losses remain a concern, while management’s new plan includes about $2 billion in cost cuts.
• Analyst sentiment is cautious: the stock has a consensus “Reduce” rating from five Buy, nine Hold, and seven Sell ratings, with a consensus price target of $200.18.

Fulcrum Asset Management LLP lifted its stake in Charter Communications, Inc. (NASDAQ:CHTR - Free Report) by 3,149.8% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 94,438 shares of the company's stock after acquiring an additional 91,532 shares during the period. Charter Communications accounts for approximately 0.5% of Fulcrum Asset Management LLP's holdings, making the stock its 29th biggest position. Fulcrum Asset Management LLP owned approximately 0.08% of Charter Communications worth $10,473,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. Bank of America Corp DE raised its holdings in Charter Communications by 28.4% during the first quarter. Bank of America Corp DE now owns 731,708 shares of the company's stock worth $157,961,000 after purchasing an additional 161,888 shares in the last quarter. State of Michigan Retirement System boosted its stake in Charter Communications by 1,547.4% during the 1st quarter. State of Michigan Retirement System now owns 431,582 shares of the company's stock valued at $93,170,000 after purchasing an additional 405,385 shares in the last quarter. Assenagon Asset Management S.A. increased its position in shares of Charter Communications by 443.8% during the 3rd quarter. Assenagon Asset Management S.A. now owns 419,881 shares of the company's stock valued at $46,565,000 after purchasing an additional 342,668 shares during the period. Robeco Institutional Asset Management B.V. increased its position in shares of Charter Communications by 562.8% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 328,457 shares of the company's stock valued at $36,426,000 after purchasing an additional 278,898 shares during the period. Finally, Sei Investments Co. increased its position in shares of Charter Communications by 79.2% during the 1st quarter. Sei Investments Co. now owns 250,497 shares of the company's stock valued at $54,078,000 after purchasing an additional 110,684 shares during the period. 81.76% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

CHTR has been the subject of several research analyst reports. Royal Bank Of Canada cut their price objective on Charter Communications from $160.00 to $150.00 and set a "sector perform" rating for the company in a report on Monday, July 27th. Bank of America reaffirmed a "buy" rating on shares of Charter Communications in a research note on Monday, July 27th. Weiss Ratings lowered Charter Communications from a "sell (d+)" rating to a "sell (d)" rating in a report on Friday, October 2nd. UBS Group dropped their price target on shares of Charter Communications from $235.00 to $140.00 and set a "neutral" rating on the stock in a research report on Monday, July 27th. Finally, Sanford C. Bernstein reiterated a "market perform" rating and issued a $150.00 price target on shares of Charter Communications in a research report on Monday, July 27th. Five investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and seven have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus price target of $200.18.

Charter Communications Stock Performance

Charter Communications stock opened at $118.07 on Monday. The company has a debt-to-equity ratio of 3.58, a quick ratio of 0.36 and a current ratio of 0.37. The firm has a market cap of $14.08 billion, a price-to-earnings ratio of 12.21, a price-to-earnings-growth ratio of 0.26 and a beta of 0.73. Charter Communications, Inc. has a 1 year low of $101.11 and a 1 year high of $254.11. The firm's 50 day moving average price is $120.93 and its two-hundred day moving average price is $163.33.

Charter Communications (NASDAQ:CHTR - Get Free Report) last announced its quarterly earnings data on Friday, November 6th. The company reported ($20.50) EPS for the quarter, missing analysts' consensus estimates of $8.90 by ($29.40). The company had revenue of $14.92 billion for the quarter, compared to analyst estimates of $13.50 billion. Charter Communications had a net margin of 2.50% and a return on equity of 27.11%. Charter Communications's revenue was up 9.1% on a year-over-year basis. During the same quarter last year, the company posted $8.34 EPS. On average, research analysts predict that Charter Communications, Inc. will post 41.43 EPS for the current fiscal year.

Key Stories Impacting Charter Communications

Here are the key news stories impacting Charter Communications this week:

• Positive Sentiment: Charter reported Q3 revenue of $14.92 billion, above estimates, and adjusted EPS of $21.70, also ahead of consensus. Revenue growth was aided by the Cox acquisition. Charter Communications tops Q3 earnings and revenue estimates
• Positive Sentiment: The company launched a new operating model aimed at returning to growth, improving its internet offerings, and using mobile and video services to attract customers. Management’s plan includes about $2 billion in cost cuts, which could help profitability if executed. Charter announces Q3 results and launches new operating model
• Negative Sentiment: Broadband customer losses worsened in Q3, overshadowing the earnings and revenue beats. Investors are concerned that competition is making it harder for Charter to stabilize its core internet business. Charter’s cost-cutting plan is overshadowed by subscriber losses
• Negative Sentiment: A $6.33 billion franchise impairment drove a reported GAAP loss of $20.50 per share, creating a sharp contrast with the adjusted earnings beat. The impairment and declining cash flow added to concerns about the quarter’s underlying performance. Charter Q3 earnings beat on debt gain amid franchise impairment

Charter Communications Profile

Charter Communications, Inc provides broadband, video, voice and mobile services in the United States, primarily under its Spectrum brand. Its residential offerings include high-speed internet, television and home phone services, while its business services include connectivity, communications and managed solutions for organizations.

The company also offers Spectrum Mobile, a wireless service that complements its broadband business. Charter serves customers across a broad U.S. footprint, including communities where it provides services over its cable network.

Founded in 1993, Charter expanded significantly through its 2016 acquisitions of Time Warner Cable and Bright House Networks, bringing those operations under the Spectrum brand.

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