Charter Communications (CHTR-Q)
NASDAQ:CHTR
404.41
0.27
(0.07%) 1d
Financials
Technical Analysis
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This summary was created by AI, based on 2 opinions in the last 12 months.
Experts express caution regarding Charter Communications (CHTR-Q), noting a combination of competitive pressures in the telecommunications sector and significant free cash flow being directed towards stock buybacks at inflated prices. One analyst highlights that the company is under strain from rising interest rates, which constrain its balance sheet and overall financial health. While there are indications that the stock appears cheap, uncertainty looms until there is a clear turnaround in business performance. Moreover, another expert mentions unexpected capital expenditure increases and cost escalations that have pushed the projected arrival of positive free cash flow to 2028, making the risk-reward ratio unsatisfactory for fresh investment. Consequently, despite potential appeal at lower valuations, skepticism prevails among analysts.
He got out just below $300. Surprised by management's Q1 commentary, didn't expect capex buildout extension and cost escalation. Free cashflow would not arrive until 2028, and this skewed his valuation. Even though it's fallen, fresh eyes would not make him re-enter, risk/reward just not there.
Very well run company serving millions of customers across ~40 US states. In sweet spot of mobile phone demands. Excellent capital allocation skills with low debt levels. Capital expenditures expected to drop which will increase free cash flow. When interest rates fall, will also be good for profits in the business (less lending costs).
CHTR is a broadband and cable operator serving 32 million customers in the US in 41 states under the Spectrum brand and is a favorite of Warren Buffet. It trads at 12x earnings and supports a 40% ROE. Cash reserves are growing while debt is aggressively retired and shares bought back. We recommend setting a stop-loss at $290, looking to achieve $466 -- upside potential of 26%. Yield 0%
(Analysts’ price target is $466.59)
Charter Communications(CHTR-Q) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 2
Neutral - Hold Signals / Votes : 2
Bearish - Sell Signals / Votes : 2
Total Signals / Votes : 6
Charter Communications(CHTR-Q) Frequently Asked Questions
What is Charter Communications stock symbol?
Charter Communications is a American stock, trading under the symbol CHTR-Q on the NASDAQ (CHTR). It is usually referred to as NASDAQ:CHTR or CHTR-Q
Is Charter Communications a buy or a sell?
In the last year, 6 stock analysts published opinions about CHTR-Q. 2 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Charter Communications.
Is Charter Communications a good investment or a top pick?
Charter Communications was recommended as a Top Pick by on . Read the latest stock experts ratings for Charter Communications.
Why is Charter Communications stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Charter Communications worth watching?
6 stock analysts on Stockchase covered Charter Communications In the last year. It is a trending stock that is worth watching.
What is Charter Communications stock price?
On 2025-05-08, Charter Communications (CHTR-Q) stock closed at a price of $404.41.
Its poor performance has put him off investing in telcos. Lots of competition for internet, wireless, and mobile. Using a lot of free cashflow to buy back stock at much higher prices, so balance sheet not as good anymore. Interest rates have gone up, and lots of cashflow being used to service this cost.
He fell in love quickly, but speculative here. Arguably cheap valuation but, until you see a turn in the business, hard to say where the stock is going.