Optimum Communications (NYSE:OPTU) Shares Down 7.8% - Time to Sell?

Key Points

• Shares dropped 7.8% to about $1.475 on Monday with 1.10M shares traded, roughly 53% below the stock's average daily volume.
• Analysts are cautious: five Holds and two Sells produce a MarketBeat consensus rating of "Reduce" and an average price target of $1.88, with several firms recently cutting ratings or targets.
• The company reported a weak quarter (EPS -$0.15 vs. -$0.01 estimate; revenue down 2.3% YoY) and insiders sold 250,000 shares recently, leaving insiders with 44.6% ownership.

Optimum Communications, Inc. (NYSE:OPTU - Get Free Report)'s stock price traded down 7.8% during mid-day trading on Monday . The company traded as low as $1.47 and last traded at $1.4750. 1,101,590 shares traded hands during trading, a decline of 53% from the average session volume of 2,337,074 shares. The stock had previously closed at $1.60.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Evercore set a $2.00 price objective on Optimum Communications in a report on Friday, February 13th. Citigroup reduced 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. Zacks Research raised Optimum Communications from a "strong sell" rating to a "hold" rating in a research report on Thursday, April 16th. Benchmark cut Optimum Communications from a "buy" rating to a "hold" rating in a research report on Tuesday, February 10th. Finally, Raymond James Financial cut Optimum Communications from an "outperform" rating to a "market perform" rating in a research report on Wednesday, March 11th. Five equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Reduce" and an average target price of $1.88.

Optimum Communications Stock Performance

The firm has a market capitalization of $708.04 million, a price-to-earnings ratio of -0.38 and a beta of 1.56. The company has a fifty day moving average of $1.45 and a two-hundred day moving average of $1.71.

Optimum Communications (NYSE:OPTU - Get Free Report) last posted its quarterly earnings data on Thursday, February 12th. The company reported ($0.15) EPS for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.14). During the same period in the previous year, the company posted ($0.12) earnings per share. The business's revenue for the quarter was down 2.3% on a year-over-year basis. Equities analysts forecast that Optimum Communications, Inc. will post -0.4 EPS for the current year.

Insider Buying and Selling

In other news, General Counsel Michael Olsen sold 250,000 shares of Optimum Communications stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $1.60, for a total value of $400,000.00. Following the transaction, the general counsel owned 1,496,277 shares in the company, valued at approximately $2,394,043.20. This trade represents a 14.32% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In the last 90 days, insiders sold 290,000 shares of company stock worth $453,800. 44.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Optimum Communications

Several hedge funds and other institutional investors have recently modified their holdings of the business. Wealth Enhancement Advisory Services LLC increased its stake in shares of Optimum Communications by 50.8% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 15,300 shares of the company's stock valued at $39,000 after purchasing an additional 5,156 shares during the last quarter. Man Group plc grew its position in Optimum Communications by 6.4% during the 2nd quarter. Man Group plc now owns 101,736 shares of the company's stock worth $218,000 after acquiring an additional 6,137 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Optimum Communications by 1.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 644,142 shares of the company's stock worth $1,713,000 after acquiring an additional 7,470 shares during the last quarter. Lazard Asset Management LLC raised its position in Optimum Communications by 41.6% in the second quarter. Lazard Asset Management LLC now owns 28,667 shares of the company's stock valued at $61,000 after purchasing an additional 8,420 shares during the last quarter. Finally, CANADA LIFE ASSURANCE Co raised its position in Optimum Communications by 28.0% in the third quarter. CANADA LIFE ASSURANCE Co now owns 43,905 shares of the company's stock valued at $103,000 after purchasing an additional 9,598 shares during the last quarter. Institutional investors own 54.85% of the company's stock.

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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