Stock Traders Purchase Large Volume of Put Options on Charter Communications (NASDAQ:CHTR)

Key Points

• Put-option activity increased: Investors purchased 8,909 put contracts in Charter Communications, about 10% above the average volume, signaling heightened hedging or bearish speculation.
• Quarterly results beat estimates but revenue declined: Charter reported $10.66 in EPS versus the $9.98 consensus and $13.53 billion in revenue, down 1.7% year over year. Shares rose 6.7% to $131.61 during Monday trading.
• Analyst sentiment remains cautious: Recent price-target cuts and a consensus “Reduce” rating reflect concerns over leverage, competition and broadband subscriber losses, despite Charter’s proposed nearly $20 billion debt exchange and new bond plan.

Charter Communications, Inc. (NASDAQ:CHTR - Get Free Report) saw unusually large options trading activity on Monday. Investors purchased 8,909 put options on the company. This represents an increase of 10% compared to the average volume of 8,063 put options.

Insider Activity at Charter Communications

In related news, Director Wade Davis acquired 5,728 shares of the company's stock in a transaction that occurred on Tuesday, April 28th. The stock was purchased at an average price of $173.72 per share, for a total transaction of $995,068.16. Following the transaction, the director directly owned 6,925 shares of the company's stock, valued at approximately $1,203,011. This trade represents a 478.53% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Thomas Rutledge sold 69,633 shares of the company's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $144.45, for a total value of $10,058,486.85. Following the transaction, the director directly owned 3,968 shares in the company, valued at approximately $573,177.60. This represents a 94.61% decrease in their position. The SEC filing for this sale provides additional information. Insiders acquired 20,125 shares of company stock valued at $3,167,116 in the last three months. 1.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Charter Communications

Several hedge funds have recently added to or reduced their stakes in CHTR. Cassaday & Co Wealth Management LLC acquired a new position in shares of Charter Communications during the 1st quarter worth about $25,000. Quarry LP raised its position in shares of Charter Communications by 153.2% in the 4th quarter. Quarry LP now owns 119 shares of the company's stock valued at $25,000 after acquiring an additional 72 shares during the period. Altshuler Shaham Ltd acquired a new stake in shares of Charter Communications in the 4th quarter valued at approximately $25,000. DV Equities LLC bought a new position in Charter Communications during the 4th quarter worth approximately $25,000. Finally, Geneos Wealth Management Inc. grew its holdings in Charter Communications by 141.0% during the first quarter. Geneos Wealth Management Inc. now owns 94 shares of the company's stock valued at $35,000 after purchasing an additional 55 shares during the period. Institutional investors and hedge funds own 81.76% of the company's stock.

Charter Communications News Summary

Here are the key news stories impacting Charter Communications this week:

• Positive Sentiment: Charter unveiled a nearly $20 billion debt exchange and new bond plan. The transaction could extend maturities and improve the company’s financial flexibility, helping ease concerns about its heavy leverage. Charter Unveils Nearly $20 Billion Debt Exchange and New Bond Plan
• Positive Sentiment: One bullish investment view argues that CHTR is significantly undervalued, citing a market capitalization below one times adjusted EBITDA, approximately $5 billion in trailing free cash flow, a roughly 30% free-cash-flow yield, share repurchases and potential deleveraging. Mobile subscriber growth and network modernization provide longer-term support. Charter Communications: Keep Adding On The Way Down
• Positive Sentiment: TD Cowen reduced its price target to $380 from $413 but maintained a Buy rating, indicating substantial potential upside from current levels.
• Neutral Sentiment: Unusually high put-option activity—8,909 contracts, about 10% above typical volume—signals increased hedging or bearish speculation, but options activity alone does not establish a fundamental change.
• Negative Sentiment: Several analysts lowered their targets: RBC to $150 from $160 with a Sector Perform rating, Barclays to $115 from $130 with an Underweight rating, and Wells Fargo to $101 from $160 with an Underweight rating. These revisions reflect concerns about leverage, competition from fiber providers and customer losses.
• Negative Sentiment: Recent results were mixed: earnings exceeded estimates, but revenue declined year over year, while ongoing broadband subscriber attrition remains a key operational risk. Charter Communications Q2 2026 Earnings Call Summary

Charter Communications Trading Up 6.7%

CHTR traded up $8.30 during trading on Monday, reaching $131.61. 4,124,208 shares of the company's stock were exchanged, compared to its average volume of 2,758,619. The company's fifty day moving average price is $136.02 and its 200-day moving average price is $183.82. The firm has a market capitalization of $16.19 billion, a PE ratio of 3.42, a P/E/G ratio of 0.23 and a beta of 0.71. Charter Communications has a fifty-two week low of $111.55 and a fifty-two week high of $309.40. The company has a debt-to-equity ratio of 4.32, a quick ratio of 0.40 and a current ratio of 0.36.

Charter Communications (NASDAQ:CHTR - Get Free Report) last posted its quarterly earnings results on Friday, July 24th. The company reported $10.66 earnings per share for the quarter, beating analysts' consensus estimates of $9.98 by $0.68. Charter Communications had a return on equity of 23.71% and a net margin of 9.05%.The company had revenue of $13.53 billion for the quarter, compared to the consensus estimate of $13.51 billion. During the same quarter in the prior year, the business posted $9.18 EPS. The firm's quarterly revenue was down 1.7% on a year-over-year basis. As a group, equities analysts forecast that Charter Communications will post 41.29 EPS for the current year.

Wall Street Analysts Forecast Growth

CHTR has been the subject of a number of recent research reports. TD Cowen dropped their target price on Charter Communications from $413.00 to $380.00 and set a "buy" rating for the company in a research report on Monday. JPMorgan Chase & Co. decreased their price target on Charter Communications from $215.00 to $200.00 and set a "neutral" rating on the stock in a report on Monday, July 20th. Citigroup lowered their price objective on Charter Communications from $230.00 to $190.00 and set a "buy" rating for the company in a research report on Monday, June 29th. Freedom Capital raised Charter Communications to a "hold" rating in a report on Friday, June 12th. Finally, Zacks Research downgraded shares of Charter Communications from a "hold" rating to a "strong sell" rating in a research report on Monday, July 6th. Five research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and six have given a Sell rating to the company's stock. Based on data from MarketBeat, Charter Communications currently has a consensus rating of "Reduce" and a consensus price target of $230.62.

Charter Communications Company Profile

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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