Charter Communications will eventually be a good buy opportunity
Charter Communications is a pillar of the telecommunications industry and is seeing prices decline right now (April 6, 2021) but will eventually be a great buy opportunity.
Weaknesses
Strengths
TipRanks
Chart
Summary
Charter Communication's price drop is only making them more appealing to small-timers like me, and I will be watching this decline with great interest. The median price target of $725 from TipRanks means more and more upside as the price drops, since I do not believe that broadband internet via cable will be immediately and instantly supplanted by 5G technology. Charter Communication's latest close was below their 200-Day SMA of $612.47, which has almost certainly put them on institutional watchlists worldwide. Passive index fund giants Vanguard, BlackRock, and State Street already own 25+ million shares and though they collectively sold about 1M shares in Q4 2020**, this price decrease may signal significant buys as part of their rebalancing effort.
*Sourced from 2020 10-K filing for Charter Communications
**Sourced from WhaleWisdom
***Sourced from etfcom summary of XLC
Weaknesses
- Endless debate between the "oh my god cord-cutters!" vs. the "cord-cutters need broadband internet!" crowds on social media
- Doesn't pay a dividend so they fail my "ok boomer" test
- Looming threat of 5G revolutionizing connectivity
- $174M "scandal" in 2018 post Time Warner Cable acquisition to settle fraud claims
- Insider selling in the last two quarters (EVP David Ellen unloading 35,000+ shares) but no insider buying**
Strengths
- Revenue increasing yearly from 2018 to 2020*
- 67% of shares owned by institutional investors (including Vanguard, BlackRock, and State Street) and 29% of shares owned by insiders**
- Makes up about 4.7% of the XLC***
TipRanks
- 15 Analysts covering Charter Communications in the last 6 months
- Median price target is $725, about 20% higher than the close on April 6, 2021
Chart
- Price fell beneath the 200-Day SMA on April 5, 2021
- RSI is dropping and was <40 on April 5, 2021
- MACD is increasing in the negative direction
Summary
Charter Communication's price drop is only making them more appealing to small-timers like me, and I will be watching this decline with great interest. The median price target of $725 from TipRanks means more and more upside as the price drops, since I do not believe that broadband internet via cable will be immediately and instantly supplanted by 5G technology. Charter Communication's latest close was below their 200-Day SMA of $612.47, which has almost certainly put them on institutional watchlists worldwide. Passive index fund giants Vanguard, BlackRock, and State Street already own 25+ million shares and though they collectively sold about 1M shares in Q4 2020**, this price decrease may signal significant buys as part of their rebalancing effort.
*Sourced from 2020 10-K filing for Charter Communications
**Sourced from WhaleWisdom
***Sourced from etfcom summary of XLC