Echostar Target of Unusually Large Options Trading (NASDAQ:ECHO)

Key Points

• EchoStar saw unusually heavy bearish options activity: Traders purchased 99,419 put options, 354% above the typical daily volume of 21,892.
• The stock fell $1.51 to $86.92, while the company reported a quarterly loss of $0.51 per share on $3.67 billion in revenue. Analysts expect a full-year loss of $1.35 per share.
• Analyst sentiment remains a consensus “Moderate Buy,” with an average price target of $132, although insiders have sold 66,094 shares worth approximately $7.6 million over the past 90 days.

Echostar CORP (NASDAQ:ECHO - Get Free Report) saw some unusual options trading on Thursday. Stock traders acquired 99,419 put options on the company. This is an increase of 354% compared to the typical daily volume of 21,892 put options.

Echostar Price Performance

NASDAQ ECHO traded down $1.51 during trading on Thursday, reaching $86.92. 3,609,119 shares of the company's stock were exchanged, compared to its average volume of 6,921,754. The company has a market cap of $25.25 billion, a PE ratio of -3.49 and a beta of 1.03. Echostar has a fifty-two week low of $26.52 and a fifty-two week high of $147.25. The company has a quick ratio of 5.12, a current ratio of 5.20 and a debt-to-equity ratio of 1.13.

Echostar (NASDAQ:ECHO - Get Free Report) last posted its earnings results on Saturday, May 9th. The company reported ($0.51) earnings per share for the quarter. Echostar had a negative return on equity of 1.28% and a negative net margin of 38.71%.The firm had revenue of $3.67 billion for the quarter. On average, analysts predict that Echostar will post -1.35 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $137.00 target price on shares of Echostar in a research note on Wednesday, July 15th. Wall Street Zen upgraded Echostar from a "sell" rating to a "hold" rating in a research report on Saturday, May 16th. Williams Trading set a $155.00 price objective on shares of Echostar in a research report on Monday, May 18th. Citigroup cut their price target on shares of Echostar from $126.00 to $117.00 and set a "buy" rating on the stock in a research note on Tuesday, August 4th. Finally, Weiss Ratings began coverage on Echostar in a research report on Monday, July 6th. They set a "sell (d-)" rating for the company. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $132.00.

Insider Activity at Echostar

In other news, Director Stephen J. Bye sold 8,508 shares of the firm's stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $89.83, for a total transaction of $764,273.64. Following the completion of the sale, the director owned 653 shares of the company's stock, valued at approximately $58,658.99. This trade represents a 92.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Hamid Akhavan sold 52,586 shares of the firm's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $121.00, for a total value of $6,362,906.00. Following the sale, the chief executive officer directly owned 865,633 shares of the company's stock, valued at $104,741,593. This represents a 5.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 66,094 shares of company stock valued at $7,587,592 in the last 90 days. 2.00% of the stock is owned by corporate insiders.

Institutional Trading of Echostar

Hedge funds and other institutional investors have recently made changes to their positions in the company. Bellwether Advisors LLC acquired a new stake in Echostar in the fourth quarter valued at $3,593,000. Dockside LLC bought a new position in shares of Echostar during the 4th quarter worth approximately $1,554,000. Seven Grand Managers LLC acquired a new stake in Echostar in the fourth quarter worth $21,740,000. Legal & General Group Plc grew its stake in shares of Echostar by 47.0% in the 4th quarter. Legal & General Group Plc now owns 356,447 shares of the company's stock valued at $38,746,000 after buying an additional 114,018 shares during the period. Finally, M&T Bank Corp increased its holdings in shares of Echostar by 3,009.8% during the fourth quarter. M&T Bank Corp now owns 196,292 shares of the company's stock valued at $22,332,000 after acquiring an additional 189,980 shares in the last quarter. 33.62% of the stock is currently owned by institutional investors.

About Echostar

EchoStar Corporation is a communications company that provides satellite and wireless services, video distribution, and broadband connectivity solutions. Its business has historically been centered on satellite technology and related services, serving customers through a range of connectivity and network offerings.

The company operates through several segments that support pay-TV, enterprise, government, and consumer communications needs. Its services and technologies have included satellite television distribution, broadband satellite access, network infrastructure, and wireless communications capabilities.

EchoStar was founded in 1980 and has long been associated with satellite communications in the United States.

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