Charter Communications (NASDAQ:CHTR) Shares Gap Up – Still a Buy?

Charter Communications, Inc. (NASDAQ:CHTR) gapped up before the market opened on Friday . The stock had previously closed at $191.52, but opened at $204.12. Charter Communications shares last traded at $207.0390, with a volume of 801,410 shares.

Key Headlines Impacting Charter Communications

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

• Positive Sentiment: Charter reported a rare quarterly gain in pay-TV/video subscribers (added ~44,000) and shed fewer broadband customers than feared, which investors viewed as a sign of stabilizing customer trends. Read More.
• Positive Sentiment: Company results showed resilient EBITDA and free cash flow supported by mobile/Internet growth and cost controls; management flagged capex reductions that could free up roughly ~$2B of incremental FCF by 2027. These operational positives are a primary reason some bullish analysts call the shares undervalued. Read More.
• Neutral Sentiment: The full Q4 earnings release, slide deck and conference-call transcript are available for review — useful for digging into subscriber detail, margins and capex guidance. Read More.
• Neutral Sentiment: Charter added Wade Davis to its board; typically a governance/experience item with limited near-term stock impact but worth noting for institutional investors. Read More.
• Negative Sentiment: Charter missed consensus EPS ($10.34 vs $10.40) and revenue ($13.60B vs $13.73B); revenue fell ~2.3% year‑over‑year, partly due to a drop in political advertising — a revenue headwind. Read More.
• Negative Sentiment: Analyst sentiment is mixed-to-cautious: some shops have lowered recommendations or kept conservative ratings citing intensifying broadband competition and persistent revenue pressure. That keeps downside risk if subscriber trends reverse. Read More. and Read More.

Wall Street Analyst Weigh In

A number of research firms have issued reports on CHTR. Barclays decreased their target price on Charter Communications from $275.00 to $200.00 and set an “underweight” rating on the stock in a research report on Monday, November 3rd. Royal Bank Of Canada decreased their price target on shares of Charter Communications from $265.00 to $240.00 and set a “sector perform” rating on the stock in a report on Friday, January 16th. Citigroup lowered their price objective on shares of Charter Communications from $325.00 to $310.00 and set a “buy” rating for the company in a research report on Monday, November 3rd. Wells Fargo & Company restated an “underweight” rating and issued a $180.00 target price (down previously from $240.00) on shares of Charter Communications in a research report on Tuesday, January 13th. Finally, Oppenheimer downgraded shares of Charter Communications from an “outperform” rating to a “market perform” rating in a report on Tuesday, November 4th. Four investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and eight have assigned a Sell rating to the company. Based on data from MarketBeat.com, Charter Communications currently has a consensus rating of “Reduce” and a consensus price target of $323.67.

Charter Communications Price Performance

The company has a debt-to-equity ratio of 4.89, a quick ratio of 0.37 and a current ratio of 0.37. The business has a 50 day moving average price of $202.06 and a 200-day moving average price of $242.80. The company has a market capitalization of $26.67 billion, a price-to-earnings ratio of 5.72, a P/E/G ratio of 0.53 and a beta of 1.06.

Charter Communications (NASDAQ:CHTR) last released its quarterly earnings data on Friday, January 30th. The company reported $10.34 earnings per share for the quarter, missing the consensus estimate of $10.40 by ($0.06). Charter Communications had a net margin of 9.29% and a return on equity of 25.55%. The company had revenue of $13.60 billion during the quarter, compared to the consensus estimate of $13.73 billion. During the same quarter in the prior year, the firm earned $10.10 EPS. The business’s revenue was down 2.3% compared to the same quarter last year. Research analysts predict that Charter Communications, Inc. will post 38.16 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director David C. Merritt sold 1,200 shares of the stock in a transaction that occurred on Wednesday, November 5th. The stock was sold at an average price of $226.18, for a total value of $271,416.00. Following the completion of the sale, the director directly owned 10,146 shares of the company’s stock, valued at $2,294,822.28. This represents a 10.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 0.83% of the company’s stock.

Hedge Funds Weigh In On Charter Communications

A number of hedge funds and other institutional investors have recently modified their holdings of CHTR. Atlantic Union Bankshares Corp bought a new stake in Charter Communications in the second quarter worth about $25,000. Ameritas Advisory Services LLC bought a new stake in shares of Charter Communications in the second quarter valued at $28,000. Heritage Wealth Advisors purchased a new position in shares of Charter Communications during the 2nd quarter valued at $29,000. Geneos Wealth Management Inc. grew its stake in shares of Charter Communications by 141.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 94 shares of the company’s stock worth $35,000 after acquiring an additional 55 shares during the period. Finally, Webster Bank N. A. purchased a new stake in Charter Communications in the 3rd quarter worth about $28,000. Hedge funds and other institutional investors own 81.76% of the company’s stock.

About Charter Communications

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.