Gogo Inc. (NASDAQ:GOGO) Receives Consensus Rating of "Reduce" from Analysts

Key Points

• Analysts assign Gogo a consensus “Reduce” rating: Two analysts recommend selling, two advise holding, and one recommends buying. The average 12-month price target is $8.50.
• Gogo’s latest quarterly results missed expectations, with EPS of $0.03 versus a $0.06 consensus estimate and revenue of $222.81 million versus $229.35 million expected; revenue declined 1.4% year over year.
• Shares opened at $2.84, near the company’s 52-week low of $2.45 and well below its $11.11 high. Institutional investors and hedge funds own approximately 69.6% of the stock.

Gogo Inc. (NASDAQ:GOGO - Get Free Report) has been assigned an average recommendation of "Reduce" from the five research firms that are currently covering the company, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the company. The average 1 year price target among analysts that have covered the stock in the last year is $8.50.

A number of research firms have commented on GOGO. Wall Street Zen upgraded shares of Gogo from a "sell" rating to a "hold" rating in a research note on Saturday. Weiss Ratings lowered shares of Gogo from a "hold (c-)" rating to a "sell (d)" rating in a research note on Monday, August 17th. Roth Capital reaffirmed a "buy" rating on shares of Gogo in a research report on Friday, August 7th. Zacks Research downgraded Gogo from a "hold" rating to a "strong sell" rating in a research note on Friday, August 7th. Finally, Morgan Stanley lowered their price objective on Gogo from $8.00 to $7.00 and set an "equal weight" rating for the company in a report on Thursday, May 21st.

Institutional Investors Weigh In On Gogo

Institutional investors and hedge funds have recently made changes to their positions in the company. Corient Private Wealth LP acquired a new position in Gogo in the second quarter worth $172,000. Amundi raised its holdings in shares of Gogo by 59.9% during the second quarter. Amundi now owns 66,931 shares of the technology company's stock worth $207,000 after purchasing an additional 25,086 shares during the period. California State Teachers Retirement System lifted its position in shares of Gogo by 228.7% in the 2nd quarter. California State Teachers Retirement System now owns 226,374 shares of the technology company's stock worth $702,000 after buying an additional 157,499 shares during the last quarter. Two Sigma Securities LLC bought a new position in shares of Gogo in the 2nd quarter worth about $41,000. Finally, Hsbc Holdings PLC boosted its holdings in shares of Gogo by 370.1% in the 2nd quarter. Hsbc Holdings PLC now owns 165,688 shares of the technology company's stock valued at $518,000 after buying an additional 130,446 shares during the period. 69.60% of the stock is owned by institutional investors and hedge funds.

Gogo Price Performance

GOGO stock opened at $2.84 on Friday. The company has a quick ratio of 1.21, a current ratio of 1.73 and a debt-to-equity ratio of 6.74. Gogo has a 52-week low of $2.45 and a 52-week high of $11.11. The stock's 50 day moving average is $3.33 and its two-hundred day moving average is $3.92. The company has a market capitalization of $384.84 million, a PE ratio of 284.00 and a beta of 1.03.

Gogo (NASDAQ:GOGO - Get Free Report) last released its earnings results on Thursday, August 6th. The technology company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.06 by ($0.03). Gogo had a negative net margin of 0.09% and a positive return on equity of 22.55%. The business had revenue of $222.81 million for the quarter, compared to analysts' expectations of $229.35 million. During the same quarter last year, the company posted $0.09 earnings per share. The business's quarterly revenue was down 1.4% compared to the same quarter last year. Analysts predict that Gogo will post 0.14 earnings per share for the current fiscal year.

About Gogo

Gogo Inc is a leading provider of in-flight connectivity and entertainment solutions for commercial and business aviation. The company specializes in delivering broadband internet, voice and text services, and streaming entertainment to passengers at 35,000 feet. Gogo's offerings include both air-to-ground (ATG) networks and satellite-based connectivity, enabling reliable in-flight internet access across a range of aircraft types.

Gogo's ATG network spans the United States and portions of Canada, using ground towers to transmit data signals directly to equipped aircraft.

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