Echostar (NASDAQ:ECHO) Stock Gets Price Target Trim from Morgan Stanley

Key Points

• Morgan Stanley cut EchoStar’s price target from $134 to $132 but kept its Overweight rating, implying about 33% upside from the then-current share price.
• Analyst sentiment remains broadly positive: MarketBeat reports a consensus Buy rating and an average target of $138.33, despite differing target changes from other firms.
• EchoStar shares fell 2.9% to $98.95 on Wednesday. The company reported quarterly EPS of $7.97, beating the cited $3.07 consensus, though it posted a negative net margin and negative return on equity.

Echostar (NASDAQ:ECHO - Get Free Report) had its target price reduced by equities researchers at Morgan Stanley from $134.00 to $132.00 in a research note issued on Wednesday, Benzinga reports. The firm presently has an "overweight" rating on the stock. Morgan Stanley's price target indicates a potential upside of 33.39% from the company's current price.

A number of other equities research analysts have also commented on ECHO. TD Cowen lowered their price target on shares of Echostar from $155.00 to $130.00 and set a "buy" rating for the company in a report on Tuesday, August 4th. Zacks Research upgraded shares of Echostar from a "hold" rating to a "strong-buy" rating in a research report on Monday, October 19th. JPMorgan Chase & Co. started coverage on shares of Echostar in a report on Friday, October 16th. They set an "overweight" rating and a $144.00 target price for the company. UBS Group raised Echostar from a "neutral" rating to a "buy" rating and raised their target price for the stock from $127.00 to $150.00 in a research note on Tuesday, September 8th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $137.00 price target on shares of Echostar in a report on Wednesday, July 15th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $138.33.

Echostar Trading Down 2.9%

Shares of ECHO stock traded down $2.98 during trading hours on Wednesday, hitting $98.95. 3,102,493 shares of the company's stock were exchanged, compared to its average volume of 6,106,687. The company has a quick ratio of 5.12, a current ratio of 5.20 and a debt-to-equity ratio of 1.13. The stock has a market capitalization of $28.75 billion, a P/E ratio of -3.99 and a beta of 1.06. The stock has a 50 day simple moving average of $91.51. Echostar has a 12-month low of $65.76 and a 12-month high of $147.25.

Echostar (NASDAQ:ECHO - Get Free Report) last posted its quarterly earnings results on Tuesday, November 3rd. The company reported $7.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.07 by $4.90. Echostar had a negative net margin of 38.71% and a negative return on equity of 1.28%. The business had revenue of $1.13 billion during the quarter, compared to analyst estimates of $3.00 million. Equities analysts anticipate that Echostar will post -0.27 EPS for the current year.

Insiders Place Their Bets

In other Echostar news, Director William Wade sold 2,575 shares of the firm's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $92.65, for a total transaction of $238,573.75. Following the completion of the transaction, the director owned 2,749 shares of the company's stock, valued at approximately $254,694.85. This trade represents a 48.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Stephen Bye sold 8,508 shares of the business's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $89.83, for a total transaction of $764,273.64. Following the sale, the director directly owned 653 shares in the company, valued at $58,658.99. The trade was a 92.87% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 13,508 shares of company stock valued at $1,224,686. 54.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Echostar

Several hedge funds have recently added to or reduced their stakes in ECHO. Ascentis Wealth Management LLC bought a new position in shares of Echostar during the 2nd quarter valued at about $334,950,000. Tidal Investments LLC bought a new position in Echostar during the second quarter valued at $159,344,000. Tema ETFs LLC grew its stake in shares of Echostar by 83,917.0% in the 2nd quarter. Tema ETFs LLC now owns 1,539,191 shares of the company's stock worth $156,228,000 after buying an additional 1,537,359 shares in the last quarter. Van ECK Associates Corp bought a new position in shares of Echostar in the 2nd quarter valued at about $139,004,000. Finally, Bank of America Corp DE grew its position in Echostar by 42.4% in the first quarter. Bank of America Corp DE now owns 1,069,301 shares of the company's stock worth $125,183,000 after acquiring an additional 318,248 shares in the last quarter. 33.62% of the stock is owned by institutional investors.

Key Stories Impacting Echostar

Here are the key news stories impacting Echostar this week:

• Positive Sentiment: SpaceX is reportedly exploring a purchase of Boost Mobile or access to EchoStar’s network. A deal could give SpaceX a faster route into U.S. wireless and provide EchoStar with a buyer or partner for Boost, though no agreement or terms have been announced. SpaceX Explores Boost Mobile Acquisition for US Wireless Push
• Positive Sentiment: EchoStar reported third-quarter EPS of $7.97, above the cited consensus estimate of $3.07, providing a headline earnings beat. EchoStar Reports Third-Quarter Results
• Neutral Sentiment: Reports say the potential wireless arrangement could combine satellite and 5G service, but its structure and value to EchoStar remain unclear. SpaceX Starlink’s Telecom Ground Game Takes Shape
• Negative Sentiment: The earnings picture was not uniformly strong: EchoStar had a negative net margin and negative return on equity. Uncertainty around the SpaceX discussions—including potential risks involving rival carriers’ network leases—may also temper enthusiasm while investors await specifics. SpaceX in Talks to Buy Boost Mobile or Access EchoStar’s Network

About Echostar

EchoStar Corporation is a global provider of satellite communications, broadband connectivity and wireless services. The company operates through businesses that serve consumers, enterprises, governments and other organizations with connectivity solutions delivered through satellite, wireless and terrestrial networks.

EchoStar's portfolio includes Hughes, which provides satellite and managed broadband services, as well as satellite television and wireless communications businesses associated with the DISH Network combination completed in 2024.

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