Optimum Communications (NYSE:OPTU) Shares Down 6.1% - What's Next?

Key Points

• Optimum Communications shares fell 6.1% to $1.305 on Tuesday, trading ~758,475 shares (down 66% vs. average) and sitting below its 50‑day ($1.48) and 200‑day ($1.83) moving averages with a market cap of about $623M.
• Analyst sentiment is broadly negative: MarketBeat shows an average rating of "Reduce" (avg. target $2.19) after multiple downgrades, including Zacks' "strong sell" and cuts from Citigroup and Raymond James, though Evercore maintains a $2.00 target.
• The company missed the quarter with EPS of ($0.15) versus a ($0.01) estimate and a 2.3% revenue decline; insiders have sold shares recently (250K by the general counsel) even as several institutional investors increased positions.

Optimum Communications, Inc. (NYSE:OPTU - Get Free Report)'s stock price fell 6.1% on Tuesday . The company traded as low as $1.29 and last traded at $1.3050. 758,475 shares traded hands during mid-day trading, a decline of 66% from the average session volume of 2,260,994 shares. The stock had previously closed at $1.39.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on OPTU. Evercore set a $2.00 price objective on shares of Optimum Communications in a research report on Friday, February 13th. Raymond James Financial lowered shares of Optimum Communications from an "outperform" rating to a "market perform" rating in a research report on Wednesday, March 11th. Weiss Ratings reissued a "sell (d-)" rating on shares of Optimum Communications in a research report on Wednesday, January 21st. Citigroup lowered shares of Optimum Communications from a "buy" rating to a "neutral" rating in a research report on Sunday, February 15th. Finally, Zacks Research lowered shares of Optimum Communications from a "hold" rating to a "strong sell" rating in a research report on Wednesday, March 18th. Four analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Reduce" and an average target price of $2.19.

Optimum Communications Price Performance

The firm's 50-day moving average is $1.48 and its 200 day moving average is $1.83. The stock has a market cap of $623.36 million, a price-to-earnings ratio of -0.33 and a beta of 1.51.

Optimum Communications (NYSE:OPTU - Get Free Report) last issued 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 period in the previous year, the business earned ($0.12) EPS. The company's revenue for the quarter was down 2.3% compared to the same quarter last year. On average, sell-side analysts forecast that Optimum Communications, Inc. will post -0.24 EPS for the current year.

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 shares were sold at an average price of $1.60, for a total transaction of $400,000.00. Following the completion of the transaction, the general counsel owned 1,496,277 shares of the company's stock, valued at approximately $2,394,043.20. This represents a 14.32% 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 have sold a total of 290,000 shares of company stock worth $453,800 over the last ninety days. Corporate insiders own 44.60% of the company's stock.

Institutional Investors Weigh In On Optimum Communications

Several institutional investors have recently bought and sold shares of OPTU. Royal Bank of Canada grew its stake in Optimum Communications by 365.8% during the first quarter. Royal Bank of Canada now owns 2,171,000 shares of the company's stock worth $5,775,000 after buying an additional 1,704,908 shares during the period. AQR Capital Management LLC boosted its stake in shares of Optimum Communications by 4.7% in the first quarter. AQR Capital Management LLC now owns 806,675 shares of the company's stock valued at $2,146,000 after purchasing an additional 36,260 shares during the period. Millennium Management LLC boosted its stake in shares of Optimum Communications by 10.5% in the first quarter. Millennium Management LLC now owns 5,516,311 shares of the company's stock valued at $14,673,000 after purchasing an additional 524,169 shares during the period. Goldman Sachs Group Inc. boosted its stake in shares of Optimum Communications by 46.6% in the first quarter. Goldman Sachs Group Inc. now owns 6,397,047 shares of the company's stock valued at $17,016,000 after purchasing an additional 2,031,971 shares during the period. Finally, Caxton Associates LLP purchased a new position in shares of Optimum Communications in the first quarter valued at $88,000. 54.85% of the stock is currently owned by hedge funds and other institutional investors.

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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