Optimum Communications (NYSE:OPTU) Reaches New 12-Month Low - What's Next?

Key Points

• Optimum Communications hit a new 52-week low, trading as low as $1.35 and last at $1.3550 on roughly 294,865 shares, down about 4.3%.
• Analysts have mostly downgraded the stock—five Hold ratings and two Sell ratings—resulting in a consensus rating of Reduce and a consensus target price of $2.19 (Evercore $2.00).
• The company missed quarterly expectations (EPS of -$0.15 vs. -$0.01 estimate), revenue fell 2.3% year-over-year, it has a negative P/E and ~$635M market cap, and insiders own 44.6% (including a recent 20,000-share sale by the general counsel).

Optimum Communications, Inc. (NYSE:OPTU - Get Free Report)'s share price reached a new 52-week low during trading on Monday . The stock traded as low as $1.35 and last traded at $1.3550, with a volume of 294865 shares traded. The stock had previously closed at $1.41.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on OPTU shares. Zacks Research upgraded shares of Optimum Communications from a "strong sell" rating to a "hold" rating in a report on Tuesday, February 17th. Citigroup cut shares of Optimum Communications from a "buy" rating to a "neutral" rating in a research note on Sunday, February 15th. Raymond James Financial lowered Optimum Communications from an "outperform" rating to a "market perform" rating in a research note on Wednesday, March 11th. Benchmark cut Optimum Communications from a "buy" rating to a "hold" rating in a report on Tuesday, February 10th. Finally, Evercore set a $2.00 price target on Optimum Communications in a report on Friday, February 13th. Five research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Optimum Communications currently has a consensus rating of "Reduce" and a consensus target price of $2.19.

Optimum Communications Stock Down 4.3%

The company has a 50 day moving average of $1.63 and a 200 day moving average of $1.95. The stock has a market capitalization of $635.12 million, a price-to-earnings ratio of -0.34 and a beta of 1.51.

Optimum Communications (NYSE:OPTU - Get Free Report) last posted its quarterly earnings results 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 in the prior year, the firm posted ($0.12) earnings per share. The business's revenue for the quarter was down 2.3% compared to the same quarter last year. On average, research analysts forecast that Optimum Communications, Inc. will post -0.24 earnings per share for the current fiscal year.

Insider Transactions at Optimum Communications

In related news, General Counsel Michael Olsen sold 20,000 shares of the company's stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $1.40, for a total transaction of $28,000.00. Following the completion of the transaction, the general counsel owned 1,239,781 shares of the company's stock, valued at approximately $1,735,693.40. This represents a 1.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 44.60% of the company's stock.

Institutional Trading of Optimum Communications

Institutional investors have recently made changes to their positions in the stock. Swiss Life Asset Management Ltd purchased a new position in shares of Optimum Communications in the 3rd quarter worth $26,000. Universal Beteiligungs und Servicegesellschaft mbH purchased a new stake in Optimum Communications during the third quarter valued at about $27,000. Cibc World Markets Corp purchased a new stake in Optimum Communications during the fourth quarter valued at about $29,000. Voleon Capital Management LP acquired a new stake in Optimum Communications during the third quarter worth about $31,000. Finally, Xponance LLC purchased a new position in shares of Optimum Communications in the 4th quarter worth about $34,000. 54.85% of the stock is owned by hedge funds and other institutional investors.

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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