Charter Communications (CHTR) Downgraded by Zacks Investment Research to Sell

Charter Communications (NASDAQ:CHTR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday.

According to Zacks, “We remain worried about Charter's operation in a saturated and competitive multi-channel U.S. video market. The company continues to face stiff competition from online TV streaming service providers. We view the company's high debt level and consolidation-related woes as potential hazards. However, the company reported better-than-expected earnings per share and revenues in the fourth-quarter 2017. Additionally, both metrics improved on a year-over-year basis. Despite cord-cutting, the company reported a net gain of 15,000 video, 300,000 Internet and 53,000 voice customers in the reported quarter, respectively. The company’s wireless venture, with plans to launch its wireless services in 2018, look impressive. The company further plans to execute field trials for 5G wireless network. The stock price grew 9.4% in the past three months, outperforming its industry's 6.3% growth.”

CHTR has been the subject of a number of other reports. Citigroup reaffirmed a “buy” rating and set a $436.00 price target (down from $453.00) on shares of Charter Communications in a research note on Wednesday. Royal Bank of Canada reaffirmed a “buy” rating and issued a $400.00 price target on shares of Charter Communications in a research note on Thursday, November 2nd. Buckingham Research initiated coverage on Charter Communications in a research note on Wednesday, December 13th. They issued a “buy” rating and a $415.00 price target on the stock. Pivotal Research reaffirmed a “buy” rating and issued a $500.00 price target (up previously from $420.00) on shares of Charter Communications in a research note on Monday. Finally, SunTrust Banks boosted their price target on Charter Communications to $440.00 and gave the company a “buy” rating in a research note on Monday. Three analysts have rated the stock with a sell rating, eight have issued a hold rating and thirteen have assigned a buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average target price of $395.05.

Shares of Charter Communications (CHTR) traded down $9.48 during mid-day trading on Wednesday, reaching $360.27. The company had a trading volume of 733,170 shares, compared to its average volume of 1,693,996. Charter Communications has a fifty-two week low of $308.30 and a fifty-two week high of $408.83. The company has a market capitalization of $92,624.63, a PE ratio of 10.22, a P/E/G ratio of 2.43 and a beta of 1.14. The company has a debt-to-equity ratio of 1.43, a current ratio of 0.23 and a quick ratio of 0.40.

Charter Communications (NASDAQ:CHTR) last announced its earnings results on Friday, February 2nd. The company reported $0.86 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.85 by $0.01. The business had revenue of $10.60 billion during the quarter, compared to analysts’ expectations of $10.60 billion. Charter Communications had a return on equity of 1.11% and a net margin of 23.80%. The company’s quarterly revenue was up 3.2% on a year-over-year basis. During the same quarter last year, the business posted $1.67 earnings per share. sell-side analysts expect that Charter Communications will post 5.69 EPS for the current year.

Institutional investors and hedge funds have recently modified their holdings of the business. OLD National Bancorp IN raised its position in Charter Communications by 65.3% during the 4th quarter. OLD National Bancorp IN now owns 2,850 shares of the company’s stock worth $958,000 after purchasing an additional 1,126 shares during the last quarter. KBC Group NV raised its position in Charter Communications by 23.0% during the 4th quarter. KBC Group NV now owns 125,584 shares of the company’s stock worth $42,191,000 after purchasing an additional 23,513 shares during the last quarter. Chilton Investment Co. LLC raised its position in Charter Communications by 3.7% during the 4th quarter. Chilton Investment Co. LLC now owns 179,242 shares of the company’s stock worth $60,218,000 after purchasing an additional 6,369 shares during the last quarter. Daiwa Securities Group Inc. raised its position in Charter Communications by 25.3% during the 4th quarter. Daiwa Securities Group Inc. now owns 25,267 shares of the company’s stock worth $8,489,000 after purchasing an additional 5,102 shares during the last quarter. Finally, California Public Employees Retirement System raised its position in Charter Communications by 33.7% during the 4th quarter. California Public Employees Retirement System now owns 619,620 shares of the company’s stock worth $208,168,000 after purchasing an additional 156,169 shares during the last quarter. Hedge funds and other institutional investors own 72.05% of the company’s stock.

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Charter Communications Company Profile

Charter Communications, Inc (Charter) is a provider of cable services, offering various entertainments, information and communications solutions to residential and commercial customers. The Company’s services include Video Services, Internet Services, Voice Services, Commercial Services and Advertising Services.

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