Altice USA Surges 9.76%: A Volatile Rebound or a Flash in the Pan?

Summary
• Altice USA (ATUS) rockets 9.76% to $2.25, defying a 52-week low of $1.55
• Analysts at Citi and TD Cowen upgrade to Buy, while Barclays holds neutral stance
• Options chain shows heightened activity in September 2025 contracts with 55.56% price drop in ATUS20250919C2

Altice USA’s stock has staged a dramatic intraday rebound, surging 9.76% to $2.25 as of 4:17 PM EDT. The move follows conflicting analyst ratings and a volatile trading session that saw the stock swing from a low of $2.07 to a high of $2.37. With the telecom sector under mixed pressure and Comcast (CMCSA) rising 2.77%, investors are scrambling to decipher whether this rally is a sustainable breakout or a short-lived spike.

Analyst Optimism and Sector Dynamics Fuel Altice’s Surge
Altice USA’s explosive 9.76% gain stems from a confluence of analyst upgrades and sector-specific momentum. Citi’s Michael Rollins reiterated a Buy rating with a $3.25 price target, while TD Cowen’s Gregory Williams joined the bullish chorus. These ratings contrast with Barclays’ Hold stance, creating a tug-of-war in market sentiment. The stock’s sharp rebound also aligns with broader telecom sector tailwinds, including AT&T’s $3.5 billion fiber investment and T-Mobile’s mobile subscriber gains. However, Altice’s -3.07 PE ratio and 52-week low of $1.55 underscore lingering structural challenges.

Telecom Sector Mixed as Altice Defies Trend
The telecom sector remains fragmented, with Comcast (CMCSA) rising 2.77% and Charter (CHTR) up 1.91%, while rivals like Cable One (CABO) and WideOpenWest (WOW) also posted gains. Altice’s 9.76% surge, however, outpaces peers, driven by its unique analyst-driven narrative. The sector’s broader struggles—declining broadband margins and regulatory headwinds—contrast with Altice’s short-term optimism, suggesting the move may be more speculative than fundamental.

Options and ETFs for a Volatile Altice Play
• RSI: 21.7 (oversold)
• MACD: -0.069 (bearish divergence)
• Bollinger Bands: $2.077 (lower band) to $3.056 (upper band)
• 200D MA: $2.52 (current price at 16% discount)

Altice’s technicals paint a mixed picture: an oversold RSI and bearish MACD suggest exhaustion, while the 200-day average at $2.52 implies a long-term gap. For traders, the key levels are the $2.07 support and $2.52 re-entry point. The options chain offers two high-conviction plays:

• ATUS20250919C2: Call option with 5.62% leverage, 0.71 delta, and -0.0042 theta. This contract benefits from Altice’s near-term volatility, with a 55.56% price drop in the last session. A 5% upside to $2.36 would yield a 19% payoff (max(0, 2.36 - 2.00) = $0.36).
• ATUS20260116P2.5: Put option with 4.09% leverage, -0.478 delta, and -0.0009 theta. This contract thrives on a pullback, with 72.04% implied volatility and 1100 turnover. A 5% downside to $2.14 would trigger a $0.36 payoff (max(0, 2.50 - 2.14) = $0.36).

Aggressive bulls should target the $2.37 intraday high, while cautious traders may short the $2.52 200D MA breakout. The sector leader Comcast’s 2.77% gain adds context for sector-wide momentum.

Backtest Altice USA Stock Performance
Backtesting the performance of ATUS (Alphabet Inc.) following a 10% intraday increase reveals a significant underperformance. The strategy resulted in a 90.50% loss, with a Sharpe ratio of -0.54 and a maximum drawdown of 0.00%, indicating it failed to capitalize on the gain and faced extreme volatility.

Altice’s Volatility: A High-Risk, High-Reward Gamble
Altice USA’s 9.76% surge is a textbook case of analyst-driven volatility, but its -3.07 PE ratio and 52-week low of $1.55 caution against complacency. The $2.07 support and $2.52 200D MA are critical levels to watch, with the options chain offering both bullish and bearish leverage. As the telecom sector remains mixed, investors should monitor Comcast’s 2.77% gain for sector-wide cues. For now, the key takeaway is clear: Aggressive bulls may consider ATUS20250919C2 into a bounce above $2.37, while cautious traders should short the $2.52 200D MA breakout.