Altice USA, Inc. (ATUS) Dipped Into Undervalued Territory?

If you can handle volatility, Altice USA, Inc. (NYSE:ATUS) is the stock to watch now. The stock closed higher on 12 February. The shares accumulated 0.19 points or 0.92 percent at $20.82 with a light trade volume of 4.899 million shares. After opening the session at $20.77, the shares went as high as $21.1 and as low as $20.725, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $14.9 billion and now has 717.5 million shares outstanding. Altice USA, Inc. (ATUS) stock has gained 17.83 percent of market value in 21 trading days.

ATUS stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.38 a share in the trailing twelve months. The stock’s value has surged 26.03 percent year to date (YTD) against a rise of 20.59 percent in 12 month’s time. The company’s shares still trade -1.3 percent away from its 1-year high of $21.09 and 43.64 percent up from 52-week low of $14.49. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Altice USA, Inc. (ATUS) will probably climb 20.08 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $33 price as 12-month high target. This represents a whopping 58.5 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $25, which represents a return potential of 20.08 percent when compared to the closing price of the stock of $20.82 on Tuesday, February 12. The lowest price target for the stock is $20 — slightly more than -3.94 percent from ATUS’s current share price.

History has shown that shares in Altice USA, Inc. have gone up on 3 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings. Investors will get their next glimpse of ATUS’s Q4 earnings on February 26. Analysts are forecasting revenue to climb 3.9 percent to $2.46B in the fiscal fourth quarter, while earnings are seen soaring by nearly -96.73 percent to $0.1 per share. It earned $0.04 per share, better than the $0, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.33B, worse than the $2.34B analysts expected. Earnings are estimated to increase by -4.1 percent this year, 420 percent next year and continue to increase by 6.62 percent annually for the next 5 years.

Let’s take a look at some insider activity at Altice USA, Inc. (NYSE:ATUS) and see the pattern. The earliest insider trade took place on 09/13/2018. Mink Victoria parted with a total of 37.5 thousand shares of company at average share price of $18.99. The total for the sales was set at $712.16 thousand. After this transaction, the SVP & Chief Accounting Officer account balance stood at 189.14 thousand shares. The stock grew 9.64 percent since that insider sale. On 08/22/2018, Connolly David, Executive VP & General Counsel, sold 129 thousand shares at a price per share of $18.31. This removed 2.36 million shares from the insider’s fortune and the stock saw a 13.71 percent rally in value since the news became public. This transaction left 141.56 thousand shares in the Executive VP & General Counsel account.

On 06/22/2018, Vice Chairman Rosenblum Lisa performed a sale transaction worth $4.24 million. This sale at $16.94 each has eliminated 250 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 22.9 percent increase since the transaction was reported. The insider now is left with 148.04 thousand shares remaining in the account. Mullen Mark, who performs the Director job, bought 2 thousand shares for $46.2 thousand. The acquisition occurred on 11/07/2017 was priced at $23.1 per share. The share price plunged -9.87 percent since the reporting date. Mullen Mark now left with a stake of 7 thousand ATUS stock worth $145.74 thousand after the insider buying.

The stock is currently hovering around the first support level of $20.66. Below this, the next support is placed in the zone of $20.51. Till the time, the ATUS stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 68.49 on daily chart, which may remain a cause for concern. If the price breaks below $20.51 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $21.04 mark may result into a pull-back move towards $21.26 level.

Further, it is sporting a 1.58 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.39. 66.9 percent is the gross profit margin for Altice USA, Inc. and operating margin sits at 14.1 percent. Along with this, the net profit margin is 21.7 percent.