Optimum Communications, Inc. (NYSE:OPTU) Given Consensus Rating of "Reduce" by Analysts

Key Points

• Analysts give Optimum Communications a consensus "Reduce" rating from seven analysts (two sell, five hold) with an average 12‑month price target of $1.875.
• Insider selling and institutional stakes: General Counsel Michael Olsen sold 250,000 shares at $1.60 (insiders sold 290,000 shares in the quarter) and now insiders own 44.60% while institutional investors hold 54.85%, including new large stakes by Vanguard, Empyrean, Deutsche Bank, Millennium and Redwood.
• Weak recent results and valuation: Optimum reported a quarterly loss of ($0.15) EPS versus a ($0.01) consensus, revenue fell 2.3% year‑over‑year, analysts forecast -0.4 EPS for the year, and the stock trades around $1.69 with a market cap of about $792.7M.

Optimum Communications, Inc. (NYSE:OPTU - Get Free Report) has received an average rating of "Reduce" from the seven analysts that are presently covering the company, Marketbeat reports. Two research analysts have rated the stock with a sell rating and five have assigned a hold rating to the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $1.8750.

Several equities analysts recently commented on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Optimum Communications in a research note on Wednesday, January 21st. Raymond James Financial downgraded Optimum Communications from an "outperform" rating to a "market perform" rating in a research note on Wednesday, March 11th. Citigroup dropped their price objective on Optimum Communications from $1.90 to $1.50 and set a "neutral" rating on the stock in a research note on Wednesday, April 8th. Benchmark downgraded Optimum Communications from a "buy" rating to a "hold" rating in a research note on Tuesday, February 10th. Finally, Zacks Research upgraded Optimum Communications from a "strong sell" rating to a "hold" rating in a research note on Thursday, April 16th.

Insider Buying and Selling

In related news, General Counsel Michael Olsen sold 250,000 shares of the company's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $1.60, for a total value of $400,000.00. Following the transaction, the general counsel owned 1,496,277 shares in the company, valued at approximately $2,394,043.20. This represents a 14.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders sold a total of 290,000 shares of company stock valued at $453,800 in the last quarter. 44.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Optimum Communications

A number of hedge funds and other institutional investors have recently bought and sold shares of OPTU. Vanguard Group Inc. bought a new stake in Optimum Communications during the 4th quarter valued at $46,002,000. Empyrean Capital Partners LP bought a new stake in Optimum Communications during the 4th quarter valued at $41,297,000. Deutsche Bank AG bought a new stake in Optimum Communications during the 4th quarter valued at $27,135,000. Millennium Management LLC bought a new stake in Optimum Communications during the 4th quarter valued at $24,478,000. Finally, Redwood Capital Management LLC bought a new stake in Optimum Communications during the 4th quarter valued at $13,512,000. Institutional investors own 54.85% of the company's stock.

Optimum Communications Trading Up 0.9%

Optimum Communications stock opened at $1.69 on Tuesday. Optimum Communications has a 12 month low of $1.20 and a 12 month high of $2.98. The business's 50 day simple moving average is $1.45 and its 200 day simple moving average is $1.76. The company has a market cap of $792.73 million, a price-to-earnings ratio of -0.42 and a beta of 1.51.

Optimum Communications (NYSE:OPTU - Get Free Report) last posted its quarterly earnings data on Thursday, February 12th. The company reported ($0.15) EPS for the quarter, missing the consensus estimate of ($0.01) by ($0.14). During the same quarter last year, the firm posted ($0.12) earnings per share. The company's revenue was down 2.3% on a year-over-year basis. As a group, equities research analysts forecast that Optimum Communications will post -0.4 earnings per share for the current fiscal year.

Optimum Communications Company Profile

Altice USA, Inc, together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company's video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications.

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