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Take a Look at Charter’s Share Repurchase Activity

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Charter Communications (CHTR) has been regularly rewarding shareholders with share buybacks. Buybacks reduce a company’s outstanding share count, boosting its earnings.

In the third quarter, the company repurchased 7.8 million shares for $3.1 billion. Since September 2016, Charter has repurchased about $24.8 billion of its common stock. The company believes that share buybacks have been a good opportunity to invest in the business. Its robust free cash flow and revenue growth have supported its share repurchase program.

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Charter’s notes

Charter is selling notes to raise funds for general corporate purposes. In two press releases on December 2, the company announced it plans to offer senior unsecured notes due in 2030 and senior secured fixed-rate notes due in 2050. The cable company plans to put the net proceeds from selling the notes toward repaying debt and repurchasing shares.

Financial performance

In the third quarter, Charter’s revenue rose 5.1% YoY (year-over-year) to $11.45 billion, boosted by customer growth. Its revenue beat analysts’ average forecast of $11.41 billion. Meanwhile, its EPS rose 27.9% YoY to $1.74, beating analysts’ estimate of $1.66.

In the third quarter, Charter lost 77,000 residential video customers due to competition from online streaming services such as Netflix. The company added 351,000 residential high-speed broadband net customers during the quarter.

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Analysts’ recommendations and target price

Of the 34 analysts covering CHTR stock, 21 suggest “buy,” one suggests “sell,” and 12 suggest “hold,” up from 11 last month. Their mean 12-month price target of $496.97 implies a 5.8% upside from its current price of $469.86. To learn more, read With Charter Up 64% this Year, Is More Upside Ahead?

Charter’s stock returns

Yesterday, Charter fell 0.1% and closed at $469.86, 3.3% below its 52-week high of $485.99, and 72.2% above its 52-week low of $272.91. It was up 65% year-to-date as of Tuesday. Its market capitalization was $100.9 billion yesterday.

Charter stock closed 0.5% below its 20-day moving average of $472.35 yesterday, and 4.1% and 10% above its 50- and 100-day moving averages of $451.33 and $427.04, respectively.

CHTR’s 14-day moving average convergence divergence is -4.27, which indicates a downward trading pattern. With a 14-day relative strength index score of 55, the stock is neither overbought nor oversold.

Charter’s upper, middle, and lower Bollinger Bands are $481.29, $472.82, and $464.35, respectively. On December 3, Charter stock closed near its middle Bollinger Band, which also indicates it’s neither overbought nor oversold.

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