Director Of Charter Communications Makes $100.00M Sale

Making a noteworthy insider sell on July 15, Liberty Broadband Corp, Director at Charter Communications CHTR, is reported in the latest SEC filing.

What Happened: Corp's decision to sell 254,706 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 $100,000,122.

Charter Communications shares are trading down 0.0% at $383.33 at the time of this writing on Wednesday morning.

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 57 million US homes and businesses, around 35% of the country. Across this footprint, Charter serves 28 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.

Understanding the Numbers: Charter Communications's Finances

Revenue Growth: Over the 3 months period, Charter Communications showcased positive performance, achieving a revenue growth rate of 0.41% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Communication Services sector.

Interpreting Earnings Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 48.87%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Charter Communications's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 8.59.

Debt Management: Charter Communications's debt-to-equity ratio surpasses industry norms, standing at 5.88. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Market Valuation:

• Price to Earnings (P/E) Ratio: Charter Communications's current Price to Earnings (P/E) ratio of 10.7 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.01 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): Boasting an EV/EBITDA ratio of 6.86, Charter Communications demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Key in Investment Decisions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring 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.

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