Over the past year, insiders have sold $512,000 worth of Altice USA, Inc. (NYSE: ATUS) at an average price of $12.78 per share, giving them the most for their money. The company’s market capitalization fell $114 million after prices fell 5.8% last week, but insiders were able to limit their loss to some extent.
While insider trading isn’t the most important thing when it comes to long-term investing, logic dictates that you should pay attention to whether insiders are buying or selling stocks.
Check out our latest analysis for Altice USA
The last 12 months of insider trading at Altice USA
Special Advisor and Director Charles Stewart has made the biggest insider sell in the last 12 months. This single transaction was for US$315,000 of shares at a price of US$9.99 each. Although insider selling is negative, for us it is even more negative if the stock is sold at a lower price. The silver lining is that this sale took place above the last price (US$4.03). It is therefore difficult to draw a firm conclusion.
In total, insiders sold more Altice USA shares than they bought in the past year. The chart below shows insider trading (by companies and individuals) over the past year. If you click on the chart, you can see all individual trades including stock price, individual and date!
If you like buying stocks that insiders are buying, rather than selling, then you might love this free list of companies. (Hint: insiders bought them).
Altice USA insiders recently sold shares
Over the past three months, we have seen significant insider selling at Altice USA. In total, Special Advisor and Director Charles Stewart sold US$315,000 worth of shares during this period, and we did not record any purchases. In light of this, it’s hard to say that all insiders think stocks are a good deal.
Altice USA Insider Ownership
Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. High insider participation often makes company management more concerned with the interests of shareholders. Altice USA insiders own approximately $560 million in stock (or 31% of the company). This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.
What could insider trading at Altice USA tell us?
An insider recently sold shares of Altice USA, but did not buy any. Zooming out, the longer term image doesn’t give us much comfort. Although insiders hold a lot of stock in the company (which is good), our analysis of their dealings does not give us confidence in the company. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. To do this, you need to find out about the 6 warning signs we have spotted some with Altice USA (including 2 that are significant).
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
What are the risks and opportunities for United States?
Altice USA, Inc., together with its subsidiaries, provides broadband video and communications services in the United States, Canada, Puerto Rico and the Virgin Islands.
See the full analysis
Trades 90.1% below our estimate of its fair value
Revenue is expected to grow 2.78% annually
Interest payments are not well covered by income
Significant insider selling in the last 3 months
Profit margins (6.5%) are lower than last year (10.6%)
Significant one-time items affecting financial results
Volatile share price over the past 3 months
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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