Optimum Communications (NYSE:OPTU) Shares Gap Up – Should You Buy?

Shares of Optimum Communications, Inc. (NYSE:OPTU) gapped up prior to trading on Monday . The stock had previously closed at $0.6582, but opened at $1.19. Optimum Communications shares last traded at $1.2350, with a volume of 58,634,942 shares traded.

Analysts Set New Price Targets

Several research firms have weighed in on OPTU. Weiss Ratings upgraded Optimum Communications from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday. UBS Group decreased their target price on Optimum Communications from $2.00 to $1.00 and set a “neutral” rating for the company in a report on Thursday, May 14th. Raymond James Financial lowered Optimum Communications from an “outperform” rating to a “market perform” rating in a research report on Wednesday, March 11th. Barclays cut their price target on shares of Optimum Communications from $2.00 to $1.00 and set an “equal weight” rating on the stock in a report on Friday, May 8th. Finally, Benchmark lowered shares of Optimum Communications from a “buy” rating to a “hold” rating in a research report on Tuesday, February 10th. Five research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and an average target price of $0.95.

Optimum Communications Trading Up 86.9%

The firm has a 50-day simple moving average of $1.22 and a two-hundred day simple moving average of $1.53. The company has a market capitalization of $586.11 million, a price-to-earnings ratio of -0.12 and a beta of 1.37.

Insider Buying and Selling

In related news, General Counsel Michael Olsen sold 20,000 shares of Optimum Communications stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $1.59, for a total transaction of $31,800.00. Following the completion of the transaction, the general counsel directly owned 1,199,781 shares in the company, valued at approximately $1,907,651.79. This trade represents a 1.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 44.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Optimum Communications

Several hedge funds have recently bought and sold shares of OPTU. Vanguard Group Inc. acquired a new stake in shares of Optimum Communications during the 4th quarter worth approximately $46,002,000. Empyrean Capital Partners LP acquired a new position in shares of Optimum Communications in the 4th quarter valued at $41,297,000. Deutsche Bank AG purchased a new stake in Optimum Communications during the fourth quarter worth $27,135,000. Millennium Management LLC acquired a new stake in Optimum Communications during the fourth quarter valued at $24,478,000. Finally, JPMorgan Chase & Co. grew its position in Optimum Communications by 11.1% during the third quarter. JPMorgan Chase & Co. now owns 8,803,557 shares of the company’s stock valued at $21,217,000 after buying an additional 879,589 shares during the period. Hedge funds and other institutional investors own 54.85% of the company’s stock.

About Optimum Communications

Altice USA, Inc, together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company’s video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications.