Charter Communications (NASDAQ:CHTR) Trading Down 4.6% - Should You Sell?

Key Points

• Charter Communications shares fell 4.6% to about $151.70, with trading volume down 81% from the average daily level.
• Analyst sentiment remains mixed but leans cautious: the consensus rating is “Hold”, while several firms recently cut price targets; the average target is $226.88.
• The company beat quarterly earnings expectations, reporting $10.66 EPS versus $9.98 expected, but revenue declined 1.7% year over year to $13.53 billion. Institutional investors own approximately 81.76% of the stock.

Charter Communications, Inc. (NASDAQ:CHTR - Get Free Report) traded down 4.6% during mid-day trading on Thursday . The company traded as low as $151.81 and last traded at $151.6970. 533,213 shares traded hands during trading, a decline of 81% from the average daily volume of 2,741,064 shares. The stock had previously closed at $158.97.

Analyst Ratings Changes

A number of brokerages recently commented on CHTR. BNP Paribas Exane reduced their price objective on shares of Charter Communications from $150.00 to $120.00 and set an "underperform" rating for the company in a research note on Tuesday, July 14th. Barclays reduced their price target on Charter Communications from $130.00 to $115.00 and set an "underweight" rating for the company in a research report on Monday, July 27th. UBS Group decreased their price objective on Charter Communications from $235.00 to $140.00 and set a "neutral" rating for the company in a research note on Monday, July 27th. Benchmark reiterated a "buy" rating on shares of Charter Communications in a research note on Wednesday, July 22nd. Finally, Sanford C. Bernstein reiterated a "market perform" rating and issued a $150.00 target price on shares of Charter Communications in a report on Monday, July 27th. Five equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $226.88.

Charter Communications Trading Down 5.2%

The company has a 50 day moving average of $142.54 and a two-hundred day moving average of $172.53. The stock has a market capitalization of $17.99 billion, a PE ratio of 3.92, a P/E/G ratio of 0.31 and a beta of 0.69. The company has a debt-to-equity ratio of 4.32, a quick ratio of 0.36 and a current ratio of 0.36.

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 for the quarter, topping the consensus estimate of $9.98 by $0.68. Charter Communications had a return on equity of 23.71% and a net margin of 9.05%.The business had revenue of $13.53 billion during the quarter, compared to the consensus estimate of $13.51 billion. During the same quarter last year, the company earned $9.18 earnings per share. The company's quarterly revenue was down 1.7% on a year-over-year basis. Sell-side analysts predict that Charter Communications, Inc. will post 42.72 EPS for the current year.

Institutional Investors Weigh In On Charter Communications

A number of large investors have recently made changes to their positions in the stock. Cassaday & Co Wealth Management LLC purchased a new position in Charter Communications in the 1st quarter worth $25,000. Quarry LP increased its holdings in shares of Charter Communications by 153.2% in the fourth quarter. Quarry LP now owns 119 shares of the company's stock valued at $25,000 after purchasing an additional 72 shares during the period. Altshuler Shaham Ltd purchased a new position in shares of Charter Communications in the fourth quarter worth about $25,000. DV Equities LLC purchased a new position in shares of Charter Communications in the fourth quarter worth about $25,000. Finally, Trust Co. of Vermont acquired a new stake in shares of Charter Communications during the second quarter worth about $28,000. 81.76% of the stock is owned by hedge funds and other institutional investors.

About Charter Communications

Charter Communications, Inc is a U.S.-based telecommunications and mass media company that provides broadband communications and video services to residential and business customers. Operating primarily under the Spectrum brand, the company offers high-speed internet, cable television, digital voice (phone) and wireless services, as well as managed and enterprise networking solutions for commercial customers. Charter's service portfolio targets both consumer and business markets with bundled and standalone offerings designed to meet streaming, connectivity and communications needs.

The company's consumer-facing products include Spectrum Internet, Spectrum TV and Spectrum Voice, while Spectrum Mobile provides wireless service through arrangements with national wireless carriers.

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