Liberty Broadband Corp, Board Member at Charter Communications CHTR, executed a substantial insider sell on October 15, according to an SEC filing.

What Happened: Corp’s decision to sell 10,400 shares of Charter Communications was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $3,448,120.

As of Wednesday morning, Charter Communications shares are down by 0.0%, currently priced at $331.94.

All You Need to Know About Charter Communications

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. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.

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): Charter Communications’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 8.58.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 7.58, caution is advised due to increased financial risk.

Financial Valuation:

• 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 10.6.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.9 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 6.89 reflects market recognition of Charter Communications’s value, positioning it as more highly valued compared to industry peers.

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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Unmasking the Significance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

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.

Unlocking the Meaning of Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals 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.

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