Optimum Communications (NYSE:OPTU) Stock Sees Heavy Put Option Buying

Key Points

• Unusual bearish options activity: Traders bought 5,356 put options on Optimum Communications, about 147% above its average volume of 2,169 contracts.
• Analyst sentiment remains negative: The stock has an average rating of “Reduce,” with five Hold ratings and four Sell ratings, and a consensus price target of $0.92. Several firms recently downgraded the shares or lowered their targets.
• Shares are under pressure: OPTU fell to $0.68, near its one-year low of $0.58, after reporting a quarterly loss of $0.67 per share that missed estimates by $0.50.

Optimum Communications, Inc. (NYSE:OPTU - Get Free Report) was the target of some unusual options trading activity on Wednesday. Traders bought 5,356 put options on the company. This represents an increase of approximately 147% compared to the average volume of 2,169 put options.

Wall Street Analysts Forecast Growth

OPTU has been the topic of a number of research reports. Zacks Research downgraded shares of Optimum Communications from a "hold" rating to a "strong sell" rating in a report on Monday, August 31st. Wells Fargo & Company lowered their price target on shares of Optimum Communications from $1.00 to $0.75 and set an "underweight" rating on the stock in a report on Tuesday, August 11th. Wall Street Zen lowered shares of Optimum Communications from a "sell" rating to a "strong sell" rating in a research report on Sunday, July 26th. Finally, Weiss Ratings cut Optimum Communications from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Wednesday, October 14th. Five investment analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, Optimum Communications presently has an average rating of "Reduce" and a consensus target price of $0.92.

Optimum Communications Stock Performance

OPTU traded down $0.15 during midday trading on Wednesday, reaching $0.68. 4,959,645 shares of the company were exchanged, compared to its average volume of 5,050,012. The stock has a market capitalization of $186.60 million, a P/E ratio of -0.07 and a beta of 1.17. The stock's 50-day simple moving average is $0.97 and its 200 day simple moving average is $1.08. Optimum Communications has a one year low of $0.58 and a one year high of $2.32.

Optimum Communications (NYSE:OPTU - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.67) earnings per share for the quarter, missing the consensus estimate of ($0.17) by ($0.50). The company had revenue of $2.02 billion for the quarter. On average, research analysts anticipate that Optimum Communications will post -0.83 earnings per share for the current year.

Insider Activity at Optimum Communications

In other news, major shareholder Neil S. Subin bought 1,291,471 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The shares were purchased at an average price of $0.84 per share, with a total value of $1,084,835.64. Following the completion of the acquisition, the insider directly owned 18,791,471 shares in the company, valued at approximately $15,784,835.64. This trade represents a 7.38% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have purchased a total of 3,032,354 shares of company stock worth $2,455,613 in the last quarter. 43.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Optimum Communications

Several large investors have recently modified their holdings of OPTU. Cidel Asset Management Inc. bought a new position in Optimum Communications in the first quarter valued at approximately $32,000. Segall Bryant & Hamill LLC acquired a new position in shares of Optimum Communications in the first quarter valued at approximately $54,000. Bank of America Corp DE increased its position in shares of Optimum Communications by 4.2% during the first quarter. Bank of America Corp DE now owns 1,082,376 shares of the company's stock worth $1,407,000 after acquiring an additional 43,279 shares in the last quarter. Pinnacle Associates Ltd. bought a new stake in shares of Optimum Communications during the third quarter worth $53,000. Finally, Y Intercept Hong Kong Ltd raised its holdings in shares of Optimum Communications by 541.6% during the first quarter. Y Intercept Hong Kong Ltd now owns 69,744 shares of the company's stock worth $91,000 after acquiring an additional 58,873 shares during the period. 54.85% of the stock is currently owned by institutional investors.

Optimum Communications Company Profile

Optimum Communications, Inc, doing business as Optimum, is a telecommunications company that provides connectivity and communications services to residential and business customers. Its offerings include high-speed broadband internet, television and streaming services, wireless mobile plans, digital voice services and related home connectivity products.

The company also serves commercial, enterprise and wholesale customers with services such as business internet, voice, networking, managed communications and data connectivity solutions.

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.