Bank of New York Mellon Corp Makes New $13.23 Million Investment in Globalstar, Inc. $GSAT

Key Points

• Bank of New York Mellon acquired 162,789 Globalstar shares worth approximately $13.23 million, while institutional investors collectively own 18.89% of GSAT.
• Globalstar insiders sold 323,492 shares valued at about $26.7 million over the past quarter, including substantial sales by a director and the CFO.
• Analyst sentiment is cautious: GSAT has a consensus “Hold” rating and a $75.67 target price, while the company recently missed quarterly EPS estimates and reported a 3.5% year-over-year revenue decline.

Bank of New York Mellon Corp bought a new stake in shares of Globalstar, Inc. (NASDAQ:GSAT - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 162,789 shares of the company's stock, valued at approximately $13,233,000. Bank of New York Mellon Corp owned 0.13% of Globalstar as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently modified their holdings of GSAT. Handelsbanken Fonder AB raised its stake in Globalstar by 13.9% in the second quarter. Handelsbanken Fonder AB now owns 16,400 shares of the company's stock valued at $1,333,000 after purchasing an additional 2,000 shares in the last quarter. Optiver Holding B.V. bought a new stake in Globalstar during the first quarter worth about $32,000. Edgestream Partners L.P. grew its stake in Globalstar by 64.2% during the first quarter. Edgestream Partners L.P. now owns 23,329 shares of the company's stock worth $1,550,000 after buying an additional 9,118 shares in the last quarter. Janus Henderson Group PLC grew its stake in Globalstar by 11.6% during the first quarter. Janus Henderson Group PLC now owns 22,702 shares of the company's stock worth $1,507,000 after buying an additional 2,367 shares in the last quarter. Finally, Amundi increased its holdings in Globalstar by 11.7% in the 1st quarter. Amundi now owns 4,173 shares of the company's stock valued at $277,000 after buying an additional 437 shares during the period. 18.89% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, Director Benjamin G. Wolff sold 32,711 shares of Globalstar stock in a transaction that occurred on 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 sale, the director directly owned 4,116 shares in the company, valued at $342,410.04. This trade represents a 88.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Rebecca Clary sold 24,100 shares of the business's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $82.17, for a total transaction of $1,980,297.00. Following the sale, the chief financial officer directly owned 96,540 shares in the company, valued at $7,932,691.80. The trade was a 19.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 323,492 shares of company stock worth $26,693,696 over the last quarter. 60.00% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on GSAT. Clear Str downgraded shares of Globalstar from a "strong-buy" rating to a "hold" rating in a report on Friday, May 15th. Weiss Ratings upgraded shares of Globalstar from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, June 5th. 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 research report on Tuesday, August 18th. Zacks Research cut Globalstar from a "hold" rating to a "strong sell" rating in a report on Friday, August 14th. Finally, Wall Street Zen upgraded Globalstar to a "sell" rating in a research report on Saturday, August 8th. One equities research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $75.67.

Globalstar Trading Down 0.2%

NASDAQ GSAT opened at $81.37 on Wednesday. The company has a market cap of $10.54 billion, a price-to-earnings ratio of -159.55 and a beta of 1.51. Globalstar, Inc. has a twelve month low of $29.36 and a twelve month high of $84.85. The company has a quick ratio of 1.51, a current ratio of 1.55 and a debt-to-equity ratio of 1.05. The business's fifty day moving average is $81.21 and its 200 day moving average is $75.90.

Globalstar (NASDAQ:GSAT - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported ($0.23) 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 firm had revenue of $64.77 million during the quarter. The firm's quarterly revenue was down 3.5% compared to the same quarter last year. As a group, sell-side analysts expect that Globalstar, Inc. will post -0.62 EPS for the current fiscal year.

Globalstar Profile

Globalstar, Inc is a leading provider of mobile satellite voice and data communications services. Through a network of low Earth orbit (LEO) satellites, the company delivers reliable satellite connectivity to users in remote or underserved regions where terrestrial networks are unavailable or unreliable. Its product portfolio includes satellite phones, two-way satellite data modems and Internet of Things (IoT) devices designed for tracking, monitoring and emergency notification.

Founded in 1991 as a joint venture between Loral and Qualcomm, Globalstar launched its first fleet of 48 satellites between 1998 and 2000.

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