Liberty Broadband Corp, Board Member at Charter Communications CHTR, executed a substantial insider sell on September 17, according to an SEC filing.

What Happened: After conducting a thorough analysis, Corp sold 40,027 shares of Charter Communications. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total transaction value is $14,275,229.

Charter Communications shares are trading down 0.19% at $338.69 at the time of this writing on Wednesday morning.

Get to Know Charter Communications Better

Charter is the product of the 2016 merger of three cable companies, each with a decades-long history in the business: Legacy Charter, Time Warner Cable, and Bright House Networks. The firm now holds networks capable of providing television, internet access, and phone services to roughly 58 million US homes and businesses, around 40% of the country. Across this footprint, Charter serves 30 million residential and 2 million commercial customer accounts under the Spectrum brand, making it the second-largest US cable company behind Comcast. The firm also owns, in whole or in part, sports and news networks, including Spectrum SportsNet (long-term local rights to Los Angeles Lakers games), SportsNet LA (Los Angeles Dodgers), SportsNet New York (New York Mets), and Spectrum News NY1.

Charter Communications: A Financial Overview

Revenue Growth: Charter Communications displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 0.19%. This indicates a notable increase in the company’s top-line earnings. When compared to others in the Communication Services sector, the company excelled with a growth rate higher than the average among peers.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 40.28%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 8.58, Charter Communications showcases strong earnings per share.

Debt Management: Charter Communications’s debt-to-equity ratio stands notably higher than the industry average, reaching 7.58. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: Charter Communications’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 10.83.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.92 is lower than the industry average, implying a discounted valuation for Charter Communications’s stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 6.94, the company’s market valuation exceeds industry averages.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Understanding the Significance of Insider Transactions

Insider transactions shouldn’t be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

A Closer Look at Important Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Charter Communications’s Insider Trades.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.