Globalstar, Inc. (GSAT) - What Are Brokerages Thinking About This Stock?

Key Points

• Analysts broadly rate Globalstar “Hold”: Four of six brokerages recommend holding, with one sell and one buy; the average 12-month price target is $75.67.
• Globalstar reported a quarterly loss of $0.14 per share, missing the $0.12 loss analysts expected, on revenue of $70.9 million.
• Insiders sold about 673,800 shares worth $55.6 million over the past 90 days; company insiders retain 60% ownership.

Shares of Globalstar, Inc. (NASDAQ:GSAT - Get Free Report) have received a consensus recommendation of "Hold" from the six brokerages that are covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation and one has assigned a buy recommendation to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $75.67.

GSAT has been the subject of several recent research reports. Weiss Ratings lowered shares of Globalstar from a "hold (c)" rating to a "sell (d-)" rating in a research note on Tuesday, September 22nd. Craig Hallum cut 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. Zacks Research upgraded shares of Globalstar from a "strong sell" rating to a "hold" rating in a research report on Thursday, October 15th. Finally, Wall Street Zen upgraded shares of Globalstar from a "sell" rating to a "hold" rating in a research report on Saturday.

Globalstar Price Performance

NASDAQ:GSAT traded up $0.79 during mid-day trading on Friday, hitting $84.32. 939,421 shares of the company's stock traded hands, compared to its average volume of 795,730. The firm's 50 day simple moving average is $82.79 and its 200 day simple moving average is $76.35. The company has a debt-to-equity ratio of 1.05, a quick ratio of 1.51 and a current ratio of 1.55. The company has a market cap of $10.92 billion, a PE ratio of -131.75 and a beta of 1.52. Globalstar has a 1 year low of $47.25 and a 1 year high of $85.10.

Globalstar (NASDAQ:GSAT - Get Free Report) last released its earnings results on Thursday, November 5th. The company reported ($0.14) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.02). The company had revenue of $70.90 million during the quarter. Globalstar had a negative net margin of 22.25% and a negative return on equity of 16.66%. Sell-side analysts expect that Globalstar will post -0.62 EPS for the current year.

Insider Activity at Globalstar

In other Globalstar news, Director James Lynch sold 361,600 shares of Globalstar stock in a transaction on 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 sale, the director owned 351,114 shares of the company's stock, valued at $28,973,927.28. This trade represents a 50.74% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, General Counsel L. Ponder, IV sold 1,692 shares of the firm's stock in a transaction on Monday, September 21st. The shares were sold at an average price of $82.96, for a total transaction of $140,368.32. Following the transaction, the general counsel owned 128,891 shares in the company, valued at $10,692,797.36. This represents a 1.30% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 673,819 shares of company stock valued at $55,595,821. Corporate insiders own 60.00% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Sculptor Capital LP bought a new position in shares of Globalstar in the first quarter valued at about $15,742,000. Senvest Management LLC increased its stake in Globalstar by 27.7% in the first quarter. Senvest Management LLC now owns 868,946 shares of the company's stock valued at $57,715,000 after purchasing an additional 188,325 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in Globalstar during the 2nd quarter valued at about $13,233,000. Governors Lane LP bought a new position in Globalstar in the 2nd quarter valued at $3,016,000. Finally, Renaissance Technologies LLC bought a new position in shares of Globalstar during the 1st quarter worth $1,501,000. Institutional investors and hedge funds own 18.89% of the company's stock.

About Globalstar

Globalstar, Inc provides mobile satellite communications and connectivity services to customers in areas where terrestrial networks are unavailable or unreliable. Its offerings include two-way satellite voice and data communications, satellite-based asset tracking, personal safety and messaging services, and Internet of Things connectivity for commercial, government, and consumer applications.

The company operates a constellation of low-Earth-orbit satellites, ground stations, and related network infrastructure serving users across North and South America, Europe, Australia, and other parts of the world.

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