EchoStar (NASDAQ:SATS) Stock Price Down 7.8% - Should You Sell?

Key Points

• Shares fell ~7.8% intraday to $124.55 from $135.11, with volume around 3.28M shares (about 48% below the average), though the stock remains above its 50-day ($116.23) and 200-day ($101.17) moving averages.
• Analysts are split — three Buy, three Hold and one Sell — giving EchoStar a consensus rating of “Hold” and a consensus target price of $134.17.
• Insiders have been selling: the COO sold 50,088 shares and the CEO sold 71,005 shares recently, while the company shows high leverage (debt-to-equity 3.21) and weak liquidity (quick ratio 0.38, current ratio 0.42).

Shares of EchoStar Corporation (NASDAQ:SATS - Get Free Report) dropped 7.8% during mid-day trading on Tuesday . The stock traded as low as $125.16 and last traded at $124.55. Approximately 3,278,553 shares traded hands during mid-day trading, a decline of 48% from the average daily volume of 6,313,326 shares. The stock had previously closed at $135.11.

Wall Street Analyst Weigh In

SATS has been the subject of a number of research analyst reports. Williams Trading set a $158.00 target price on EchoStar in a report on Wednesday, January 7th. TD Cowen reiterated a "buy" rating on shares of EchoStar in a research report on Wednesday, January 7th. Citigroup increased their price objective on EchoStar from $111.00 to $121.00 and gave the company a "neutral" rating in a research note on Tuesday, February 3rd. Zacks Research lowered EchoStar from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 10th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of EchoStar in a research note on Wednesday, January 21st. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, EchoStar has an average rating of "Hold" and a consensus target price of $134.17.

EchoStar Stock Down 7.7%

The company has a quick ratio of 0.38, a current ratio of 0.42 and a debt-to-equity ratio of 3.21. The firm has a market capitalization of $36.01 billion, a PE ratio of -2.48 and a beta of 1.00. The business has a 50-day moving average price of $116.23 and a 200-day moving average price of $101.17.

Insiders Place Their Bets

In other news, COO John Swieringa sold 50,088 shares of the business's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $113.58, for a total transaction of $5,688,995.04. Following the transaction, the chief operating officer owned 253,535 shares of the company's stock, valued at approximately $28,796,505.30. The trade was a 16.50% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Hamid Akhavan sold 71,005 shares of the company's stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $107.52, for a total transaction of $7,634,457.60. Following the completion of the sale, the chief executive officer directly owned 823,293 shares of the company's stock, valued at $88,520,463.36. This represents a 7.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 55.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On EchoStar

Institutional investors and hedge funds have recently bought and sold shares of the company. DLD Asset Management LP acquired a new stake in shares of EchoStar during the 3rd quarter worth approximately $2,481,700,000. Sachem Head Capital Management LP purchased a new position in EchoStar in the fourth quarter worth approximately $568,218,000. Icahn Carl C purchased a new position in EchoStar in the third quarter worth approximately $332,513,000. Norges Bank acquired a new stake in EchoStar during the fourth quarter worth $182,111,000. Finally, Contrarius Group Holdings Ltd purchased a new stake in EchoStar in the third quarter valued at $98,819,000. 33.62% of the stock is currently owned by institutional investors and hedge funds.

EchoStar Company Profile

EchoStar Corporation NASDAQ: SATS is a global provider of satellite communication solutions, offering a suite of broadband and video delivery services to consumer, enterprise and government customers. The company operates two principal business segments: Broadband and Video. Through its Broadband segment, EchoStar delivers high-speed satellite internet access, managed network services and ground infrastructure for residential, commercial and rural markets. Its Video segment provides satellite fleet operations, teleport facilities and capacity-leasing services to video distributors and content providers.

In the Broadband segment, EchoStar's Hughes Network Systems division designs and manufactures satellite broadband equipment, including user terminals and gateways, and develops advanced network management technologies.

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