Globalstar (NASDAQ:GSAT) Raised to "Hold" at Zacks Research

Key Points

• Zacks Research upgraded Globalstar from “strong sell” to “hold,” bringing the overall analyst consensus to “Hold” with an average price target of $75.67.
• Globalstar’s shares traded at $82.38, near their 52-week high of $84.85, while the company reported a quarterly loss of $0.23 per share that missed estimates and revenue declined 3.5% year over year.
• Insiders sold heavily: company insiders sold 685,864 shares worth approximately $56.6 million over the past 90 days, though insiders still own about 60% of the stock.

Globalstar (NASDAQ:GSAT - Get Free Report) was upgraded by investment analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued on Thursday, Zacks reports.

Other research analysts also recently issued research reports about the stock. Craig Hallum downgraded shares of Globalstar from a "buy" rating to a "hold" rating and set a $90.00 price objective for the company. in a report on Tuesday, August 18th. Weiss Ratings downgraded Globalstar from a "hold (c)" rating to a "sell (d-)" rating in a research report on Tuesday, September 22nd. Finally, Wall Street Zen raised Globalstar to a "sell" rating in a research note on Saturday, August 8th. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $75.67.

Globalstar Price Performance

GSAT traded down $0.59 on Thursday, hitting $82.38. 700,921 shares of the company's stock traded hands, compared to its average volume of 637,315. Globalstar has a one year low of $40.50 and a one year high of $84.85. The company has a current ratio of 1.55, a quick ratio of 1.51 and a debt-to-equity ratio of 1.05. The firm has a market cap of $10.67 billion, a price-to-earnings ratio of -161.53 and a beta of 1.45. The company's 50 day simple moving average is $82.54 and its 200-day simple moving average is $80.98.

Globalstar (NASDAQ:GSAT - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.23) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.14). Globalstar had a negative net margin of 22.25% and a negative return on equity of 16.66%. The company had revenue of $64.77 million for the quarter. The company's revenue was down 3.5% on a year-over-year basis. As a group, research analysts anticipate that Globalstar will post -0.62 EPS for the current year.

Insider Activity

In related news, Director James Lynch sold 361,600 shares of Globalstar stock in a transaction dated Friday, September 18th. The shares were sold at an average price of $82.52, for a total transaction of $29,839,232.00. Following the completion of the transaction, the director directly owned 351,114 shares of the company's stock, valued at approximately $28,973,927.28. The trade was a 50.74% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Benjamin Wolff sold 32,711 shares of the company's stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $83.19, for a total transaction of $2,721,228.09. Following the transaction, the director owned 4,116 shares in the company, valued at $342,410.04. The trade was a 88.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 685,864 shares of company stock worth $56,598,086 in the last 90 days. Company insiders own 60.00% of the company's stock.

Hedge Funds Weigh In On Globalstar

Large investors have recently bought and sold shares of the business. PNC Financial Services Group Inc. lifted its position in shares of Globalstar by 0.6% during the first quarter. PNC Financial Services Group Inc. now owns 26,090 shares of the company's stock worth $1,733,000 after purchasing an additional 144 shares during the last quarter. Clay Northam Wealth Management LLC grew its holdings in shares of Globalstar by 4.6% in the first quarter. Clay Northam Wealth Management LLC now owns 3,626 shares of the company's stock worth $241,000 after purchasing an additional 160 shares during the last quarter. TD Waterhouse Canada Inc. increased its stake in Globalstar by 3.0% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 8,047 shares of the company's stock worth $652,000 after buying an additional 234 shares during the period. Arizona State Retirement System increased its stake in Globalstar by 1.9% in the 2nd quarter. Arizona State Retirement System now owns 14,193 shares of the company's stock worth $1,154,000 after buying an additional 258 shares during the period. Finally, Amundi increased its stake in Globalstar by 11.7% in the 1st quarter. Amundi now owns 4,173 shares of the company's stock worth $277,000 after buying an additional 437 shares during the period. Hedge funds and other institutional investors own 18.89% of the company's stock.

About Globalstar

Globalstar, Inc NASDAQ: GSAT provides satellite communications and connectivity services to customers in North America, South America, Europe, Australia, and other regions. The company operates a constellation of low-Earth-orbit satellites and a network of ground stations that support voice, data, asset-tracking, and other communications applications, particularly in areas with limited or no traditional cellular coverage.

Its products and services include two-way mobile satellite voice and data communications, one-way satellite messaging and tracking, and connectivity solutions for industries such as government, transportation, maritime, emergency response, recreation, and natural-resource management.

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