Stock Analysis | Charter Outlook - Navigating a Weak Technical Outlook and Mixed Analyst Sentiment

Market Snapshot

Headline Takeaway: Charter (CHTR) is in a weak technical state with mixed analyst sentiment, and recent price trends show a decline of -2.03%.Stance: Caution is warranted for investors, especially with bearish signals dominating technical indicators.

News Highlights

Recent news affecting the broader market includes updates on U.S. policies related to student visas, social media vetting, and vaccine approvals. These developments could indirectly influence Charter's performance, particularly in a global economy where travel and education sectors are interconnected. Additionally, Target’s leadership change in its retail media network and VS MEDIA's recent $8.1 million fundraising could signal broader trends in the media and consumer sectors. However, these events are not directly tied to Charter’s operations.

Analyst Views & Fundamentals

Charter has received a simple average analyst rating of 2.00 and a performance-weighted rating of 1.55, indicating a pessimistic outlook. The ratings are not consistent, with Goldman Sachs issuing a “Strong Sell” and Wells Fargo a “Neutral” recommendation. These scores align with the recent price decline, which is falling faster than the market-weighted expectations.

Key fundamental values and their internal diagnostic scores (0-10) include:

• Gross profit margin: 40.28% (internal diagnostic score: 3.00)
• ROE (Return on Equity): 7.34% (internal diagnostic score: 1.00)
• Long-term debt to working capital ratio: 7.05% (internal diagnostic score: 3.00)
• Price-to-Sales (PS) ratio: 8.04 (internal diagnostic score: 0.00)
• Price-to-Earnings (PE) ratio: 74.01 (internal diagnostic score: 1.00)

These mixed signals suggest a stock with strong gross margins but high valuations and leverage concerns.

Money-Flow Trends

Charter’s fund-flow score of 7.84 (internal diagnostic score: 7.84) indicates positive inflows. Notably, extra-large money flows (53.18%) are showing the most strength, while small and medium inflows are relatively weaker. Institutional and large-money flows (block inflow ratio: 51.04%) are also positive, contrasting with the negative small-money trend. This suggests that big investors remain cautiously optimistic despite the recent price drop.

Key Technical Signals

Charter’s technical score is 4.06 (internal diagnostic score: 4.06), indicating weak technical conditions and the need for caution. Recent technical signals over the last 5 days include a mix of Williams %R overbought and oversold signals:

• Williams %R Overbought: Internal score of 1.88 (neutral bias)
• Williams %R Oversold: Internal score of 6.25 (neutral rise)

Chart patterns for the period include overbought readings on August 22 and 21, and oversold on September 2, August 28, and 29. These signals suggest a volatile and unclear trend with bearish dominance (1 bearish vs. 0 bullish indicators).

Conclusion

Charter remains in a weak technical position with mixed analyst sentiment and high valuations. Investors should consider waiting for a clearer trend or stronger earnings catalyst before committing new capital. Given the current market volatility and mixed signals, watching the stock closely for pullbacks or improved technical conditions could offer better entry points in the near term.