Optimum Communications (NYSE:OPTU) Shares Down 4.8% - What's Next?

Key Points

• Optimum Communications shares fell 4.8% in mid-day trading, with heavy volume of about 9.1 million shares, well above its average daily volume. The stock traded between $1.28 and $1.2850 after closing at $1.35.
• Analysts remain cautious on the name: UBS cut its price target to $1.00, Citigroup lowered its target to $0.50 and rated it a sell, and the overall consensus is now “Reduce” with an average target price of $0.95.
• Insider activity and ownership remain notable, with General Counsel Michael Olsen selling 20,000 shares under a 10b5-1 plan, while institutional investors own 54.85% of the company and insiders own 43.40%.

Optimum Communications, Inc. (NYSE:OPTU - Get Free Report) dropped 4.8% during mid-day trading on Thursday . The company traded as low as $1.28 and last traded at $1.2850. Approximately 9,072,092 shares were traded during trading, an increase of 43% from the average daily volume of 6,339,463 shares. The stock had previously closed at $1.35.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on OPTU shares. UBS Group cut their price target on shares of Optimum Communications from $2.00 to $1.00 and set a "neutral" rating on the stock in a research note on Thursday, May 14th. Raymond James Financial downgraded shares of Optimum Communications from an "outperform" rating to a "market perform" rating in a research report on Wednesday, March 11th. Weiss Ratings upgraded shares of Optimum Communications from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, June 30th. Citigroup cut shares of Optimum Communications from a "neutral" rating to a "sell" rating and cut their price objective for the company from $1.50 to $0.50 in a research report on Friday, May 15th. Finally, BNP Paribas Exane raised shares of Optimum Communications from an "underperform" rating to a "neutral" rating in a research note on Tuesday, June 2nd. Six equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and an average target price of $0.95.

Optimum Communications Price Performance

The business's 50-day moving average is $1.13 and its two-hundred day moving average is $1.42. The firm has a market cap of $612.27 million, a P/E ratio of -0.13 and a beta of 1.15.

Insiders Place Their Bets

In other Optimum Communications news, General Counsel Michael Olsen sold 20,000 shares of the firm's 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 completion of the transaction, the general counsel directly owned 1,199,781 shares in the company, valued at $1,907,651.79. This trade represents a 1.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 60,000 shares of company stock valued at $71,800 in the last ninety days. 43.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Optimum Communications

A number of institutional investors and hedge funds have recently made changes to their positions in OPTU. Swiss Life Asset Management Ltd bought a new position in shares of Optimum Communications in the third quarter valued at $26,000. Cibc World Markets Corp acquired a new stake in Optimum Communications in the fourth quarter valued at $29,000. Voleon Capital Management LP acquired a new stake in Optimum Communications in the third quarter valued at $31,000. Cidel Asset Management Inc. bought a new position in shares of Optimum Communications in the 1st quarter valued at about $32,000. Finally, Xponance LLC bought a new position in shares of Optimum Communications in the 4th quarter valued at about $34,000. 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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