Charter Communications Inc. (NASDAQ: CHTR) stock jumped 1.61% on Friday to $459.45 against a previous-day closing price of $452.18. With 1.11 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.36 million shares. During the session, the Entertainment company that operates in wider Communication Services sector, reached to the highest price of $469.69 whereas the lowest price it dropped to was $450.37. The 52-week range on CHTR shows that it touched its highest point at $825.62 and its lowest point at $407.75 during that stretch. It currently has a 1-year price target of $594.77. Beta for the stock currently stands at 0.94.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CHTR was up-trending over the past week, with a rise of 5.48%, but this was down by -2.58% over a month. Three-month performance surged to 2.48% while six-month performance fell -23.46%. The stock lost -40.33% in the past year, while it has lost -29.53% so far this year. A look at the trailing 12-month EPS for CHTR yields 27.61 with Next year EPS estimates of 36.23. For the next quarter, that number is 7.95. This implies an EPS growth rate of 58.90% for this year and 16.41% for next year. EPS is expected to grow by 30.92% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 8.90%.
Float and Shares Shorts:
At present, 164.05 million CHTR shares are outstanding with a float of 152.87 million shares on hand for trading. On Jul 14, 2022, short shares totaled 7.35 million, which was 4.38% higher than short shares on Jun 14, 2022. In addition to Mr. Thomas M. Rutledge as the firm’s Chairman & CEO, Mr. John R. Bickham serves as its Vice Chairman.
Through their ownership of 59.81% of CHTR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 36.52% of CHTR, in contrast to 33.44% held by mutual funds. Shares owned by individuals account for 31.59%. As the largest shareholder in CHTR with 5.08% of the stake, The Vanguard Group, Inc. holds 8,520,877 shares worth 8,520,877. A second-largest stockholder of CHTR, Capital Research & Management Co, holds 8,190,814 shares, controlling over 4.88% of the firm’s shares. Dodge & Cox is the third largest shareholder in CHTR, holding 6,686,718 shares or 3.98% stake. With a 2.38% stake in CHTR, the Dodge & Cox Stock Fund is the largest stakeholder. A total of 3,994,586 shares are owned by the mutual fund manager. The American Balanced Fund, which owns about 1.97% of CHTR stock, is the second-largest Mutual Fund holder. It holds 3,312,141 shares valued at 1.55 billion. American Funds Growth Fund of Ame holds 1.68% of the stake in CHTR, owning 2,810,850 shares worth 1.32 billion.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, CHTR reported revenue of $13.60B and operating income of $3.17B. Over the past year, revenue came in at $53.16B while operating income stood at $11.88B. It generated $1.47B net income for the quarter, which came to $5.50B over the last twelve months. The EBITDA in the recently reported quarter was $5.49B and diluted EPS was $8.80. EBITDA for the full year was $21.12B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CHTR since 32 analysts follow the stock currently. There are 14 analysts who recommend BUY ratings, while 5 suggest SELL ratings. Of the remaining analysts, 11 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CHTR analysts setting a high price target of $820.00 and a low target of $377.00, the average target price over the next 12 months is $572.77. Based on these targets, CHTR could surge 78.47% to reach the target high and fall by -17.95% to reach the target low. Reaching the average price target will result in a growth of 24.66% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CHTR will report FY 2022 earnings on 02/03/2023. Analysts have provided yearly estimates in a range of $38.61 being high and $27.74 being low. For CHTR, this leads to a yearly average estimate of $32.76. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Charter Communications Inc. surprised analysts by $1.58 when it reported $8.80 EPS against a consensus estimate of $7.22. The surprise factor in the prior quarter was $0.36. Based on analyst estimates, the high estimate for the next quarter is $10.26 and the low estimate is $7.45. The average estimate for the next quarter is thus $8.32.
Summary of Insider Activity:
Insiders traded CHTR stock several times over the past three months with 0 Buys and 5 Sells. In these transactions, 0 shares were bought while 2,182,831 shares were sold. The number of buy transactions has increased to 77 while that of sell transactions has risen to 79 over the past year. The total number of shares bought during that period was 3,312,089 while 10,400,787 shares were sold.