Encore Global Management LP Buys Shares of 16,500 Charter Communications, Inc. $CHTR

Key Points

• Encore Global Management LP purchased 16,500 Charter Communications shares worth approximately $3.56 million, making CHTR 2.5% of its portfolio. Institutional investors and hedge funds collectively own 81.76% of the stock.
• Charter’s latest quarterly results exceeded expectations, with EPS of $10.66 versus the $9.98 consensus and revenue of $13.53 billion; however, revenue declined 1.7% year over year.
• Analyst sentiment remains mixed, with five Buy, eight Hold and six Sell ratings and an overall “Reduce” consensus. Concerns include broadband subscriber losses, fiber competition and heavy leverage, while the company is pursuing a nearly $20 billion debt exchange and bond plan.

Encore Global Management LP purchased a new position in Charter Communications, Inc. (NASDAQ:CHTR - Free Report) during the 1st quarter, according to its most recent disclosure with the SEC. The fund purchased 16,500 shares of the company's stock, valued at approximately $3,562,000. Charter Communications accounts for 2.5% of Encore Global Management LP's holdings, making the stock its 10th largest position.

A number of other large investors also recently modified their holdings of CHTR. Geneos Wealth Management Inc. grew its stake in shares of Charter Communications by 141.0% in the first 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. Cassaday & Co Wealth Management LLC acquired a new position in Charter Communications during the 1st quarter valued at $25,000. Quarry LP boosted its holdings in Charter Communications by 153.2% in the 4th quarter. Quarry LP now owns 119 shares of the company's stock valued at $25,000 after purchasing an additional 72 shares during the period. Altshuler Shaham Ltd bought a new stake in Charter Communications in the 4th quarter valued at $25,000. Finally, DV Equities LLC acquired a new stake in Charter Communications in the 4th quarter worth $25,000. 81.76% of the stock is currently owned by institutional investors and hedge funds.

Charter Communications News Roundup

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

• Positive Sentiment: Citigroup lowered its price target to $180 from $190 but maintained a Buy rating, implying substantial potential upside from recent trading levels. Benzinga analyst price target update
• Positive Sentiment: Brokerages’ consensus target price is reported at $249.12, indicating analysts collectively see considerable longer-term appreciation potential. Charter consensus price target
• Positive Sentiment: TD Cowen cut its target to $380 from $413 but retained a Buy rating. The call reflects a lower valuation outlook while still highlighting significant potential upside. TD Cowen price target update
• Positive Sentiment: Charter’s proposed nearly $20 billion debt exchange and new bond plan could extend maturities and reduce refinancing pressure, although the company remains highly leveraged. Charter debt exchange and bond plan
• Positive Sentiment: A bullish investment case points to a stressed valuation, strong free-cash-flow generation, mobile subscriber growth, network modernization and aggressive share repurchases. Charter Communications investment thesis
• Neutral Sentiment: RBC reduced its target to $150 from $160 and kept a Sector Perform rating, suggesting limited near-term conviction despite modest potential upside. RBC price target update
• Neutral Sentiment: Recent quarterly results exceeded EPS expectations, but revenue declined year over year, underscoring the contrast between strong cash generation and operational pressure.
• Negative Sentiment: Wells Fargo lowered its target to $101 from $160 and assigned an Underweight rating, citing downside risk. Wells Fargo price target update
• Negative Sentiment: Barclays cut its target to $115 from $130 and maintained an Underweight rating. Barclays price target update
• Negative Sentiment: Investor concerns include broadband customer attrition and intensifying fiber competition. Unusually high put-option activity also signals increased bearish hedging or speculation.

Insider Activity

In related news, Director Thomas Rutledge sold 69,633 shares of the stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $144.45, for a total value of $10,058,486.85. Following the completion of the transaction, the director owned 3,968 shares of the company's stock, valued at $573,177.60. This represents a 94.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Mauricio Ramos purchased 9,929 shares of the business's stock in a transaction on Friday, May 15th. The shares were acquired at an average price of $140.93 per share, with a total value of $1,399,293.97. Following the purchase, the director owned 19,309 shares of the company's stock, valued at approximately $2,721,217.37. This trade represents a 105.85% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 1.10% of the company's stock.

Analyst Ratings Changes

Several research firms have recently issued reports on CHTR. TD Cowen dropped their price objective on shares of Charter Communications from $413.00 to $380.00 and set a "buy" rating on the stock in a report on Monday. Freedom Capital raised Charter Communications to a "hold" rating in a research report on Friday, June 12th. The Goldman Sachs Group lowered their price target on Charter Communications from $185.00 to $125.00 and set a "sell" rating on the stock in a research note on Thursday, July 2nd. BNP Paribas Exane cut their price target on Charter Communications from $150.00 to $120.00 and set an "underperform" rating for the company in a report on Tuesday, July 14th. Finally, Zacks Research cut Charter Communications from a "hold" rating to a "strong sell" rating in a report on Monday, July 6th. Five investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and six have assigned a Sell rating to the stock. According to data from MarketBeat, Charter Communications presently has an average rating of "Reduce" and an average target price of $230.00.

Charter Communications Trading Up 6.4%

Shares of Charter Communications stock opened at $139.97 on Wednesday. Charter Communications, Inc. has a 52-week low of $111.55 and a 52-week high of $298.21. The firm has a market capitalization of $17.21 billion, a PE ratio of 3.63, a price-to-earnings-growth ratio of 0.24 and a beta of 0.71. The company has a debt-to-equity ratio of 4.32, a current ratio of 0.36 and a quick ratio of 0.40. The company's fifty day moving average price is $135.78 and its two-hundred day moving average price is $182.80.

Charter Communications (NASDAQ:CHTR - Get Free Report) last released its quarterly earnings data on Friday, July 24th. The company reported $10.66 EPS for the quarter, topping analysts' consensus estimates of $9.98 by $0.68. Charter Communications had a net margin of 9.05% and a return on equity of 23.71%. The company had revenue of $13.53 billion during the quarter, compared to the consensus estimate of $13.51 billion. During the same period last year, the firm earned $9.18 EPS. The firm's revenue for the quarter was down 1.7% compared to the same quarter last year. On average, analysts expect that Charter Communications, Inc. will post 41.14 EPS for the current year.

About Charter Communications

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.

Want to see what other hedge funds are holding CHTR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Charter Communications, Inc. (NASDAQ:CHTR - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.