Charter Communications
shares tumbled after the broadband and cable company disclosed an unexpected drop in fourth-quarter internet subscribers on Feb 2. President and CEO Chris Winfrey then scooped up a block of shares in his first purchase in years.
Charter’s stock price has dropped more than 20% this year, wiping out last year’s 15% gain. The drop in broadband subscribers surprised investors, whose race for the exits made the stock that day’s worst performer in the
S&P 500 index.
The subscriber shortfall came despite Charter receiving $3 billion in broadband subsidies—more than any other single company—over the past three years.
On Feb. 6, Winfrey paid $1.5 million for 5,050 Charter shares, an average price of $295.29 each. According to a filing with the Securities and Exchange Commission, Winfrey now owns 57,700 Charter shares in a personal account, and 148,000 shares through trusts and a limited liability company.
Winfrey declined to comment on his purchase.
The transaction was his first open-market purchase of Charter stock in two years. He last made such a buy in February 2022, when he paid $1.6 million for 2,750 shares, an average price of $591.96 each.
J.P. Morgan downgraded Charter stock to Neutral from Overweight and cut its price target to $370 from $445 after the company’s fourth-quarter report. Analyst Sebastino Petti wrote, “CEO Winfrey expects Charter to ‘return to a more normalized internet growth over time,’ but we expect [broadband] losses to continue in 2025.”
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at [email protected] and follow @BarronsEdLin.
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