Charter Communications Inc. (NASDAQ: CHTR): Street Finally Waking Up


    TCI Fund Management Ltd. recently announced the acquisition of new stake in Charter Communications Inc. (NASDAQ:CHTR). The institutional investor has increased its shareholding in the Communication Services company by 2.66% to 10.44 million shares with purchase of 0.27 million shares. This fresh investment now brings its stake to 4.46% valued currently at $5.33 billion. In addition, Veritas Asset Management LLP raised its holdings by 87900.0 to 3.29 million shares.

    With over 1.06 million Charter Communications Inc. (CHTR) shares trading Thursday and a closing price of $558.03 on the day, the dollar volume was approximately $591.38 million. The shares have shown a positive weekly performance of 5.25% and its price on 07/16/20 gained nearly 1.09%. Currently, there are 207.83M common shares owned by the public and among those 142.84M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 32 analysts who have offered their price forecasts for CHTR have a consensus price objective of $578.64. The analysts have set the share’s price value over the next 12 months at a high of $704.00 and a low of $425.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Charter Communications Inc. stock is 2.20 for the next 12 months. The average price target is 1.58% above its last price level and an upside to the estimated low will see the stock lose -31.3% over that period. But an upside of 20.73% will see the stock hit the forecast high price target while mean target price for the stock is $577.50.

    Insiders at the company have transacted a total of 132 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 61 of these insider trades were purchases, accounting for 964,222 shares. Insider sales of the common stock occurred on 71 occasions, with total insider shares sold totaling 791,306 shares.

    The top 3 mutual fund holders in Charter Communications Inc. are Vanguard Total Stock Market Index, American Funds Growth Fund of Ame, and Vanguard 500 Index Fund. Vanguard Total Stock Market Index owns 4.34 million shares of the company’s stock, all valued at over $2.21 billion. The company sold 22360.0 shares recently to bring their total holdings to about 1.85% of the shares outstanding. American Funds Growth Fund of Ame sold -1.74 million shares to see its total holdings shrink to 4.33 million shares valued at over $2.21 billion and representing 1.85% of the shares outstanding. Vanguard 500 Index Fund sold 6604.0 shares to bring its total holdings to over 3.2 million shares at a value of $1.63 billion. Vanguard 500 Index Fund now owns shares totaling to 1.37% of the shares outstanding.

    Shares of Charter Communications Inc. (NASDAQ: CHTR) opened at $552.82, up $0.81 from a prior closing price of $552.01. However, the script later closed the day at $558.03, up 1.09%. The company’s stock has a 5-day price change of 5.25% and 12.43% over the past three months. CHTR shares are trading 15.04% year to date (YTD), with the 12-month market performance up to 34.61% higher. It has a 12-month low price of $345.67 and touched a high of $552.54 over the same period. Currently, 1.06 million shares have been traded, compared to an average intraday trading volume of 1.07 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 6.16%, 6.60%, and 14.51% respectively.

    Institutional ownership of Charter Communications Inc. (NASDAQ: CHTR) shares accounts for 73.10% of the company’s 207.83M shares outstanding. Mutual fund holders own 31.18%, while other institutional holders and individual stakeholders account for 34.28% and 24.73% respectively.

    It has a market capitalization of $113.55B and a beta (3y monthly) value of 1.03. The stock’s trailing 12-month PE ratio is 67.65, while the earnings-per-share (ttm) stands at $8.25. The company has a PEG of 1.43 and a Quick Ratio of 0.40 with the debt-to-equity ratio at 2.69. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.36% over the week and 2.31% over the month.

    Analysts forecast that Charter Communications Inc. (CHTR) will achieve an EPS of $2.55 for the current quarter, $2.67 for the next quarter and $18.09 for 2021. The lowest estimate earnings-per-share for the quarter is $1.79 while analysts give the company a high EPS estimate of $3.27. Comparatively, EPS for the current quarter was $1.39 a year ago. Earnings per share for the fiscal year are expected to increase by 42.70%, and 60.18% over the next financial year. EPS should grow at an annualized rate of 47.17% over the next five years, compared to 43.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 32 brokerage firm advisors rate Charter Communications Inc. (CHTR) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 18 Wall Street analysts polled rate the stock as a buy, while 10 of the 32 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the CHTR, a number of firms have released research notes about the stock. Nomura stated their Buy rating for the stock in a research note on July 10, 2020, with the firm’s price target at $500-$600. Morgan Stanley coverage for the Charter Communications Inc. (CHTR) stock in a research note released on April 13, 2020 offered a Overweight rating with a price target of $560. Pivotal Research Group was of a view on March 30, 2020 that the stock is Buy, while Barclays gave the stock Equal Weight rating on March 18, 2020, issuing a price target of. Raymond James on their part issued Outperform rating on March 16, 2020.


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