Valued at a market cap of $46.79 billion, Charter Communications, Inc. (CHTR) operates as a broadband connectivity and cable operator company serving residential and commercial customers. Based in Stamford, Connecticut, the company offers subscription-based internet, video, and voice services, as well as a suite of broadband connectivity services, including fixed internet and WiFi. It also owns and operates regional sports networks and local sports and news channels.
Companies worth more than $10 billion are generally labeled as “large-cap” stocks, and Charter Communications fits this criterion perfectly. The company distinguishes itself as the second-largest cable operator in the U.S., with services available to more than 57 million homes and businesses in 41 states.
Shares of CHTR are trading 29.7% below its 52-week high of $458.30, which they hit on Oct. 16, 2023. The telecommunications company has rallied 16.7% over the past three months, surpassing the broader Communication Services Select Sector SPDR ETF Fund’s (XLC) marginal decline over the same time frame.
In the longer term, CHTR stock is down 17.1% on a YTD basis, lagging behind XLC’s 16.1% gains. Shares of CHTR have declined 23.8% over the past 52 weeks, underperforming XLC’s 26% returns over the same time frame.
CHTR has been trading above its 200-day moving average since late July. However, has remained above its 50-day moving average since early September, despite some fluctuations, indicating a bullish trend.
CHTR’s underperformance is primarily driven by a decline in its video subscribers due to cord-cutting and stiff competition from streamers, as well as the weaker-than-expected performance of the company in five of the last seven quarters.
CHTR reported Q2 earnings on Jul. 26. The company reported a profit of $1.23 billion, or $8.49 per share, surpassing Wall Street expectations of $7.55 per share. Also, the company's revenue of $13.69 billion exceeded analysts’ estimates of $13.62 billion. Moreover, the stock gained 16.6% on the earnings release day.
CHTR has lagged behind its rival Comcast Corporation’s (CMCSA) 10.2% decline on a YTD basis and a 12.5% drop over the past 52 weeks.
Since CHTR has underperformed the broader market, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from the 24 analysts in coverage, and the mean price target of $372.76 suggests a premium of 15.2% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
