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March 5, 2020, 12:39 p.m. EST

Snapshot: Should Investors Buy or Sell Charter Stock?

Mar 05, 2020 (Market Realist via COMTEX) -- On Wednesday, Charter Communications (NAS:CHTR) stock rose 5.62% and closed at $522.84. Based on the last closing price, the company has a market capitalization of $109.8 billion. The stock price has risen 0.92% in the trailing five-day period, while it has risen 51.1% in the trailing 12-month period.

Currently, Charter Communications stock is trading 4.3% below its 52-week high of $546.54 on February 19. The stock was also trading 55.8% above its 52-week low of $335.53 on March 8, 2019. On a YTD (year-to-date) basis, the stock has risen by 7.8% as of Wednesday. In comparison, the broader S&P 500 Index has fallen 3.1% YTD.

Analysts' recommendations for Charter stock

According to the latest recommendations from 34 brokerage firms surveyed by Reuters, 21 or ~61.8% of the analysts recommend a "buy" for the stock, 12 or ~35.3% recommend a "hold," and one or ~2.9% recommend a "sell."

Analysts have an average target price of $558.62 on Charter Communications. The target price implies a return of 6.8% based on the closing price of $522.84 on Tuesday. The consensus target price for the stock has risen from $551.52 in February--a rise of 1.3%. The lowest target price estimate is $400, while the highest is $635.00.

Comcast (NAS:CMCSA) and Dish Network (NAS:DISH) have average broker target prices of $51.17 and $42.35, respectively. These figures imply returns of 20.4% and 25.0%, respectively, over the next 12 months.

Charter's notes

Charter Communications is offering notes to raise funds for general corporate purposes. In a press release on Wednesday, the company announced that it intends to offer senior unsecured notes due in 2030. The company intends to put the net proceeds from selling the notes toward paying down its outstanding debt and repurchasing shares.

Financial performance in Q4

Charter Communications' net revenue rose 4.7% year-over-year to $11.8 billion in the fourth quarter of 2019. Wall Street analysts expected revenue of $11.7 billion. The company's adjusted EPS was $3.28 in the fourth quarter of 2019, which was better than $1.29 in the fourth quarter of 2018. However, analysts expected an adjusted EPS of $2.48.

In the fourth quarter of 2019, Charter lost 105,000 residential video subscribers due to competition from over-the-top services like Netflix. The company added 313,000 residential broadband net customers during the quarter.

According to a FierceVideo report , "Our operating strategy continues to deliver strong results and in 2019, we created over 1.1 million new customer relationships, substantially more than in 2018. And we added over 1.4 million new Internet customers, also more than in 2018," said Charter Communications CEO Tom Rutledge. He also said, "As we look to 2020, we remain focused on driving customer growth by offering superior services and value to our customers, improving the efficiency of our operations, and delivering sustainable free cash flow growth, by driving EBITDA growth, while reducing capital intensity."

In the fourth quarter of 2019, the company repurchased 5.6 million shares for $2.6 billion. Since September 2016, Charter Communications has repurchased $27.4 billion of its common stock.

Charter's stock returns

On Wednesday, Charter Communications stock was trading 0.1% below its 20-day moving average of $523.28. Meanwhile, the stock is trading 2.4% above its 50-day moving average of $510.58 and 7.3% above its 100-day moving average of $487.08. The stock's 14-day relative strength index score of 54 shows that it isn't oversold or overbought.

Charter Communications has an upper Bollinger Band level of $552.60. The company's middle Bollinger Band level is $523.75, while its lower Bollinger Band level is $494.89. On Wednesday, the stock closed near its middle Bollinger Band level, which also shows that the stock is neutral.

Charter Communications stock is trending downward in today's trading session. The stock fell by about 2.23% at 9:49 AM ET. Read Charter Stock Is Still a Big Winner for Investors to learn more.

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