Charter Communications, Inc. (CHTR) is a prominent player in the broadband and cable industry, providing services to both residential and commercial customers. With a market capitalization of $53.7 billion, Charter operates across 41 states, connecting over 58 million homes and businesses of varying sizes.
Understanding Charter’s Market Position
Companies valued at $10 billion or more are classified as “large-cap stocks,” and Charter fits this category. Its extensive customer reach naturally contributes to its strong valuation. As the second-largest cable operator in the U.S. and the leading provider of rural internet, Charter has established a significant presence in the telecommunications sector.
Recent Stock Performance
Despite its size and influence, CHTR shares have experienced an 8.9% decline from their 52-week peak of $415.27, reached on November 13. Over the past three months, the stock has risen 15.6%, but this is slightly behind the iShares U.S. Telecommunications ETF (IYZ), which gained 16.3% in the same period.
Looking at the bigger picture, Charter’s year-to-date performance is even less favorable, with a decline of 2.6% and a mere 1% increase over the last 52 weeks. This contrasts sharply with the IYZ, which saw gains of 20.9% in 2024 and 24.9% over the past year.
Technical Indicators and Market Trends
On a positive note, CHTR has remained above its 200-day moving average since late July and consistently above its 50-day moving average since late October. These moving averages often indicate positive momentum in stock performance.
Recent Earnings Report Offers Hope
The company’s stock surged by 11.9% following a quarterly earnings announcement on November 1, where it reported better-than-expected results. Charter’s revenue for the third quarter increased by 1.6% year-over-year to $13.8 billion, driven primarily by growth in mobile services and advertising revenue. Notably, free cash flow jumped an impressive 47.6% year-over-year to $1.6 billion.
Additionally, Charter demonstrated effective expense management, leading to a 3.6% increase in adjusted EBITDA, which reached $5.6 billion. The adjusted earnings per share (EPS) of $8.82 also surpassed analysts’ forecasts by 3.2%, bolstering investor confidence considerably.
Comparative Analysis with Peers
In comparison to its peers, Charter has fallen behind Liberty Broadband Corporation (LBRDA), which shows a smaller dip in 2024 and a 5.1% gain over the last year.
Future Outlook and Analyst Insight
Among 24 analysts covering CHTR, the consensus rating remains a “Hold.” The average price target is set at $412.67, indicating a 9% potential increase from current values.
On the date of publication, Aditya Sarawgi 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
