Stock Analysis | Charter Outlook - Navigating Volatility and Mixed Signals

Market Snapshot

Headline Takeaway: Charter (CHTR) is in a technically weak position with mixed signals, suggesting caution for investors.

News Highlights

Recent news has focused on broader U.S. policy changes affecting international student visas and global vaccine regulations. These developments could indirectly impact Charter, particularly if they affect consumer demand for broadband services among international users. Additionally, ETF assets in the Asia-Pacific region hit a record high of $1.25 trillion, indicating global market optimism that may not yet be reflected in Charter's stock.

Analyst Views & Fundamentals

The consensus among recent analysts is neutral. Wells Fargo's Steven Lee Cahall recently issued a neutral rating on Charter, with a historical win rate of 50.0% and an average yield of 8.34%. The simple average rating is 3.00, while the weighted average rating is slightly lower at 2.41.

• Price vs. Ratings: While the stock has risen by 7.27% in recent days, the weighted ratings suggest a more conservative stance, highlighting a mismatch between current market trends and analyst expectations.

Key Fundamental Factors:

• Net profit attributable to parent company shareholders / Net profit (%): 86.71%. Internal diagnostic score (0-10): 2.00
• ROA (Return on Assets): 0.99%. Internal diagnostic score (0-10): 3.00
• Net income / Revenue: 25.72%. Internal diagnostic score (0-10): 0.00
• Net profit / Total profit (%): 77.17%. Internal diagnostic score (0-10): 3.00
• Cash / Market Value: 81.95%. Internal diagnostic score (0-10): 3.00

Money-Flow Trends

Big money is showing more confidence in Charter than retail investors. The block (large) inflow ratio is 50.83%, indicating strong institutional interest, while retail (small) inflow ratio is just 48.78%, suggesting caution among individual investors.

The overall fund-flow score is 7.66 (internal diagnostic score), labeled as good, which implies that capital is trending in a positive direction despite the mixed sentiment.

Key Technical Signals

Charter’s technical analysis indicates a weak trend with internal diagnostic score 4.97. Among the key signals:

• MACD Golden Cross: This is a strong bullish indicator with an internal diagnostic score of 8.30. It appeared on August 14 and is a positive signal for trend continuation.
• WR Overbought: A neutral bias with a score of 1.86. This has occurred twice in the last five days (August 20 and August 21), suggesting a potential pullback may be coming.
• RSI Oversold: Scored 3.10, this indicator suggests a potential rebound may be on the horizon, though it's not a strong signal.
• Bearish Engulfing: Scored 5.45, it appeared on August 20 and could signal a short-term correction.

Key Insight: The market is in a volatile state with unclear direction. Long and short signals are relatively balanced, suggesting investors should closely monitor the stock for signs of clarity.

Conclusion

With a 7.66 fund-flow score and mixed technical signals, Charter is at a turning point. The MACD Golden Cross is a positive sign, but the RSI Oversold and WR Overbought indicators suggest the stock could be due for a consolidation period.

Actionable Takeaway: Consider waiting for a pull-back before committing to new positions, especially given the volatility and mixed analyst ratings. Watch for a clear break above the 7.27% price rise as a potential trigger for a more aggressive move.