Optimum Communications (NYSE:OPTU) Upgraded to Hold at Zacks Research

Key Points

• Zacks Research upgraded Optimum Communications from a "strong sell" to a "hold", but the analyst consensus remains negative with an average rating of "Reduce" and a consensus target price of $1.88.
• The company posted weak results, missing quarterly EPS (−$0.15 vs. −$0.01 estimate) with revenue down 2.3% year‑over‑year; the stock trades around $1.66, has a negative P/E, and a 52‑week range of $1.20–$2.98.
• There has been notable insider selling (general counsel sold 20,000 shares; 290,000 shares sold over the last 90 days), though insiders still own about 44.6% and institutional investors own 54.85% of the stock.

Optimum Communications (NYSE:OPTU - Get Free Report) was upgraded by research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Thursday,Zacks.com reports.

Other equities analysts also recently issued reports about the stock. 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 reaffirmed a "sell (d-)" rating on shares of Optimum Communications in a research report on Wednesday, January 21st. Evercore set a $2.00 price target on Optimum Communications in a research report on Friday, February 13th. Citigroup lowered their price target on Optimum Communications from $1.90 to $1.50 and set a "neutral" rating on the stock in a research report on Wednesday, April 8th. Finally, Benchmark downgraded Optimum Communications from a "buy" rating to a "hold" rating in a research report on Tuesday, February 10th. Five research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Optimum Communications presently has an average rating of "Reduce" and a consensus target price of $1.88.

Optimum Communications Price Performance

Optimum Communications stock opened at $1.66 on Thursday. The company has a market capitalization of $778.61 million, a price-to-earnings ratio of -0.41 and a beta of 1.51. Optimum Communications has a one year low of $1.20 and a one year high of $2.98. The company's fifty day moving average price is $1.45 and its two-hundred day moving average price is $1.78.

Optimum Communications (NYSE:OPTU - Get Free Report) last posted its 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). Optimum Communications's revenue was down 2.3% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.12) EPS. As a group, sell-side analysts anticipate that Optimum Communications will post -0.24 earnings per share for the current year.

Insider Activity

In related news, General Counsel Michael Olsen sold 20,000 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $1.29, for a total value of $25,800.00. Following the completion of the sale, the general counsel owned 1,219,781 shares in the company, valued at approximately $1,573,517.49. This trade represents a 1.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through 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 over the last 90 days. Company insiders own 44.60% of the company's stock.

Institutional Investors Weigh In On Optimum Communications

Several hedge funds have recently made changes to their positions in the stock. Cidel Asset Management Inc. bought a new stake in shares of Optimum Communications in the first quarter valued at about $32,000. SG Americas Securities LLC bought a new stake in shares of Optimum Communications in the first quarter valued at about $115,000. Hsbc Holdings PLC bought a new stake in shares of Optimum Communications in the fourth quarter valued at about $213,000. PEAK6 LLC bought a new stake in shares of Optimum Communications in the fourth quarter valued at about $400,000. Finally, Eos Management L.P. bought a new stake in shares of Optimum Communications in the fourth quarter valued at about $97,000. 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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