Charter Communications (CHTR) Soars 1.38% on $21.9B Cox Acquisition

Charter Communications (CHTR) shares surged 1.38% today, marking the fourth consecutive day of gains, with a total increase of 4.44% over the past four days. The stock price reached its highest level since November 2023, with an intraday gain of 2.25%.

The strategy of buying CHTR shares after they reached a recent high and holding for one week resulted in a 30.66% return over the past five years, compared to a benchmark return of 44.90%, with an excess return of -14.24% and a CAGR of 12.04%. The strategy had a maximum drawdown of -39.35%, a Sharpe ratio of 0.36, and a volatility of 33.27%.

Charter Communications has announced a definitive agreement to acquire Cox Communications in a transformative transaction valued at approximately $21.9 billion. This merger between two of the largest cable companies in the U.S. is expected to provide strategic advantages and growth opportunities for Charter. The acquisition is linked to Liberty Broadband's accelerated acquisition by Charter, contingent upon the completion of Charter and Cox's transaction. This merger and related transactions are subject to customary closing conditions, with Liberty Broadband providing voting support for the Charter-Cox combination.

As a result of the merger announcement, Charter's stock experienced a positive reaction, with upgrades from analysts. The acquisition is expected to enhance Charter's market position and drive future growth, contributing to the stock's upward momentum.