Charter Communications (NASDAQ:CHTR) Hits New 1-Year Low - Should You Sell?

Key Points

• Charter Communications shares hit a new 52-week low, trading as low as $101.63, well below their 50-day and 200-day moving averages of $137.48 and $153.30.
• Analyst sentiment is cautious: the stock has an average “Reduce” rating, with 10 Holds and 7 Sells versus 5 Buys. Recent price targets were lowered, including Wells Fargo’s $101 target and Morgan Stanley’s $140 target.
• The company exceeded quarterly EPS expectations, reporting $10.66 versus $9.98 expected, although revenue declined 1.7% year over year. Institutional investors own 81.76% of the stock, while Charter carries significant leverage with a debt-to-equity ratio of 4.32.

Shares of Charter Communications, Inc. (NASDAQ:CHTR - Get Free Report) reached a new 52-week low during mid-day trading on Monday. The company traded as low as $101.63 and last traded at $102.5870, with a volume of 144,811 shares changing hands. The stock had previously closed at $103.38.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on CHTR shares. Sanford C. Bernstein reaffirmed a "market perform" rating and issued a $150.00 price target on shares of Charter Communications in a report on Monday, July 27th. Morgan Stanley lowered their price objective on Charter Communications from $150.00 to $140.00 and set an "equal weight" rating on the stock in a research note on Friday, September 25th. Wells Fargo & Company lowered their price objective on Charter Communications from $160.00 to $101.00 and set an "underweight" rating on the stock in a research note on Monday, July 27th. BNP Paribas Exane dropped their target price on Charter Communications from $150.00 to $120.00 and set an "underperform" rating for the company in a report on Tuesday, July 14th. Finally, Arete Research raised Charter Communications to a "strong sell" rating in a research note on Thursday, October 1st. Five analysts have rated the stock with a Buy rating, ten have issued a Hold rating and seven have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average target price of $202.53.

Charter Communications Price Performance

The company has a debt-to-equity ratio of 4.32, a current ratio of 0.36 and a quick ratio of 0.36. The company has a market capitalization of $12.19 billion, a PE ratio of 2.66, a price-to-earnings-growth ratio of 0.22 and a beta of 0.70. The stock's 50 day simple moving average is $137.48 and its 200-day simple moving average is $153.30.

Charter Communications (NASDAQ:CHTR - Get Free Report) last issued its quarterly earnings results on Friday, July 24th. The company reported $10.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $9.98 by $0.68. The business had revenue of $13.53 billion for the quarter, compared to analysts' expectations of $13.51 billion. Charter Communications had a net margin of 9.05% and a return on equity of 23.71%. The business's quarterly revenue was down 1.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $9.18 earnings per share. As a group, equities analysts forecast that Charter Communications, Inc. will post 42.92 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Charter Communications

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Polianta Ltd purchased a new stake in Charter Communications during the second quarter worth approximately $1,777,000. California First Leasing Corp boosted its holdings in Charter Communications by 100.1% in the first quarter. California First Leasing Corp now owns 24,772 shares of the company's stock valued at $5,348,000 after purchasing an additional 12,390 shares in the last quarter. BI Asset Management Fondsmaeglerselskab A S increased its stake in Charter Communications by 30.4% in the first quarter. BI Asset Management Fondsmaeglerselskab A S now owns 52,497 shares of the company's stock valued at $11,333,000 after purchasing an additional 12,249 shares during the last quarter. Quantinno Capital Management LP increased its stake in Charter Communications by 54.3% in the first quarter. Quantinno Capital Management LP now owns 45,828 shares of the company's stock valued at $9,893,000 after purchasing an additional 16,118 shares during the last quarter. Finally, Public Employees Retirement System of Ohio acquired a new stake in Charter Communications during the second quarter worth approximately $3,637,000. Hedge funds and other institutional investors own 81.76% of the company's stock.

Charter Communications Company Profile

Charter Communications, Inc is a telecommunications and media company that provides broadband connectivity and related communications services in the United States. Its consumer-facing operations are marketed primarily under the Spectrum brand and include high-speed internet, video entertainment, mobile wireless service and voice communications.

Charter also serves businesses and public-sector organizations with internet access, data networking, telephone, video and managed communications solutions.

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