Optimum Communications (NYSE:OPTU) Hits New 52-Week Low - What's Next?

Key Points

• Optimum Communications hit a new 52-week low intraday at $1.18 and was trading down about 9.4% at $1.285, trading below its 50‑day ($1.44) and 200‑day ($1.69) moving averages and holding a market cap of roughly $588 million; the consensus analyst rating is "Reduce" with an average price target of $1.88.
• The company reported Q1 EPS of ($0.10), beating estimates of ($0.16), but analysts still forecast a fiscal‑year EPS around -0.4 and broker actions have been mixed (several holds and downgrades).
• Insiders have been net sellers (310,000 shares sold in the last 90 days, including a 20,000‑share sale by the general counsel) while large institutions like Vanguard, Deutsche Bank and others recently established sizable new stakes; insiders own 44.6% and institutions own 54.85% of the stock.

Optimum Communications, Inc. (NYSE:OPTU - Get Free Report) shares hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $1.18 and last traded at $1.2850, with a volume of 2381288 shares trading hands. The stock had previously closed at $1.38.

Analyst Ratings Changes

Several brokerages recently issued reports on OPTU. Zacks Research raised Optimum Communications from a "strong sell" rating to a "hold" rating in a research note on Thursday, April 16th. Evercore set a $2.00 target price on Optimum Communications in a research note on Friday, February 13th. Citigroup decreased their target price 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. Raymond James Financial downgraded Optimum Communications from an "outperform" rating to a "market perform" rating in a research note on Wednesday, March 11th. Finally, Weiss Ratings raised Optimum Communications from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, April 29th. Five equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $1.88.

Optimum Communications Trading Down 9.4%

The stock has a 50 day simple moving average of $1.44 and a 200-day simple moving average of $1.69. The firm has a market cap of $588.08 million, a P/E ratio of -0.31 and a beta of 1.56.

Optimum Communications (NYSE:OPTU - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.10) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.16) by $0.06. As a group, equities analysts forecast that Optimum Communications, Inc. will post -0.4 earnings per share for the current fiscal year.

Insider Transactions at Optimum Communications

In other Optimum Communications news, General Counsel Michael Olsen sold 20,000 shares of Optimum Communications stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $1.59, for a total value of $31,800.00. Following the sale, the general counsel owned 1,199,781 shares of the company's stock, valued at $1,907,651.79. The trade was a 1.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 310,000 shares of company stock valued at $485,600. Insiders own 44.60% of the company's stock.

Institutional Trading of Optimum Communications

A number of large investors have recently added to or reduced their stakes in OPTU. Vanguard Group Inc. bought a new stake in Optimum Communications in the 4th quarter worth approximately $46,002,000. Empyrean Capital Partners LP purchased a new position in shares of Optimum Communications in the 4th quarter worth approximately $41,297,000. Deutsche Bank AG purchased a new position in shares of Optimum Communications in the 4th quarter worth approximately $27,135,000. Millennium Management LLC purchased a new position in shares of Optimum Communications in the 4th quarter worth approximately $24,478,000. Finally, Redwood Capital Management LLC purchased a new position in shares of Optimum Communications in the 4th quarter worth approximately $13,512,000. Institutional investors own 54.85% of the company's stock.

About Optimum Communications

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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