Optimum Communications (NYSE:OPTU) Sees Strong Trading Volume - Still a Buy?

Key Points

• Trading surge: Optimum Communications traded 3,781,644 shares on Friday (a 66% rise from the prior session) and last traded at $1.625 versus a $1.53 close the previous day.
• Analyst downgrades and consensus: Several firms have cut ratings (Benchmark, Raymond James, Zacks, Weiss, Citigroup), leaving a MarketBeat consensus of "Reduce" and a consensus target price of $1.88.
• Weak results and insider activity: The company missed quarterly EPS (‑$0.15 vs. ‑$0.01 expected) with revenue down 2.3% YoY; insiders recently sold shares (20,000 by the general counsel) while the report shows insiders own ~44.6% and institutions ~54.85% of the stock.

Optimum Communications, Inc. (NYSE:OPTU - Get Free Report) saw strong trading volume on Friday . 3,781,644 shares were traded during mid-day trading, an increase of 66% from the previous session's volume of 2,277,832 shares.The stock last traded at $1.6250 and had previously closed at $1.53.

Analyst Ratings Changes

A number of research analysts recently weighed in on the stock. Benchmark lowered shares of Optimum Communications from a "buy" rating to a "hold" rating in a report on Tuesday, February 10th. Raymond James Financial lowered shares of Optimum Communications from an "outperform" rating to a "market perform" rating in a report on Wednesday, March 11th. Zacks Research downgraded Optimum Communications from a "hold" rating to a "strong sell" rating in a research report on Wednesday, March 18th. Weiss Ratings restated a "sell (d-)" rating on shares of Optimum Communications in a research report on Wednesday, January 21st. Finally, Citigroup lowered their price target on Optimum Communications from $1.90 to $1.50 and set a "neutral" rating for the company in a research report on Wednesday, April 8th. Four research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus target price of $1.88.

Optimum Communications Price Performance

The company has a market capitalization of $778.61 million, a P/E ratio of -0.41 and a beta of 1.51. The business has a 50-day moving average of $1.45 and a 200-day moving average of $1.78.

Optimum Communications (NYSE:OPTU - Get Free Report) last issued its quarterly earnings results on Thursday, February 12th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.14). Optimum Communications's quarterly revenue was down 2.3% on a year-over-year basis. During the same period in the prior year, the company posted ($0.12) earnings per share. Sell-side analysts predict that Optimum Communications, Inc. will post -0.24 EPS for the current fiscal year.

Insider Transactions at Optimum Communications

In other Optimum Communications news, General Counsel Michael Olsen sold 20,000 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $1.29, for a total value of $25,800.00. Following the sale, the general counsel owned 1,219,781 shares in the company, valued at $1,573,517.49. This trade represents a 1.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 290,000 shares of company stock valued at $453,800 in the last ninety days. 44.60% of the stock is owned by company insiders.

Institutional Trading of Optimum Communications

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. purchased a new stake in Optimum Communications in the fourth quarter worth $46,002,000. Empyrean Capital Partners LP purchased a new stake in Optimum Communications in the fourth quarter worth $41,297,000. Deutsche Bank AG purchased a new stake in Optimum Communications in the fourth quarter worth $27,135,000. Millennium Management LLC purchased a new stake in Optimum Communications in the fourth quarter worth $24,478,000. Finally, JPMorgan Chase & Co. increased its stake in Optimum Communications by 11.1% in the third quarter. JPMorgan Chase & Co. now owns 8,803,557 shares of the company's stock worth $21,217,000 after purchasing an additional 879,589 shares during the period. Hedge funds and other 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.

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.