Daiwa Securities Group Inc. Takes $1.33 Million Position in EchoStar Corporation $SATS

Key Points

• Daiwa Securities Group disclosed a new fourth-quarter stake in EchoStar, buying 12,200 shares valued at about $1.33 million.
• EchoStar’s stock was down 1.3% in the session, and the shares traded at $115.24, below recent highs but near analysts’ average target levels.
• Insider activity and analyst sentiment were mixed: CEO Hamid Akhavan sold 52,586 shares in a pre-arranged transaction, while Wall Street currently rates the stock a Hold on average with a consensus target of $137.14.

Daiwa Securities Group Inc. purchased a new stake in shares of EchoStar Corporation (NASDAQ:SATS - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 12,200 shares of the communications equipment provider's stock, valued at approximately $1,326,000.

Several other hedge funds have also modified their holdings of SATS. CoreCap Advisors LLC bought a new stake in shares of EchoStar during the fourth quarter valued at approximately $28,000. Rosenberg Matthew Hamilton bought a new stake in shares of EchoStar during the fourth quarter valued at approximately $29,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of EchoStar during the third quarter valued at approximately $38,000. Tucker Asset Management LLC bought a new stake in shares of EchoStar during the fourth quarter valued at approximately $42,000. Finally, BOKF NA grew its stake in shares of EchoStar by 300.0% during the fourth quarter. BOKF NA now owns 400 shares of the communications equipment provider's stock valued at $43,000 after purchasing an additional 300 shares during the last quarter. 33.62% of the stock is owned by institutional investors.

Insider Activity at EchoStar

In related news, 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 transaction of $6,362,906.00. Following the sale, the chief executive officer directly owned 865,633 shares in the company, valued at $104,741,593. This trade represents a 5.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 55.90% of the stock is currently owned by insiders.

EchoStar Stock Down 1.3%

NASDAQ:SATS opened at $115.24 on Thursday. EchoStar Corporation has a 1 year low of $16.60 and a 1 year high of $147.25. The company has a current ratio of 0.30, a quick ratio of 0.27 and a debt-to-equity ratio of 3.17. The stock has a market cap of $33.40 billion, a price-to-earnings ratio of -2.30 and a beta of 0.94. The stock has a 50-day moving average price of $125.92 and a two-hundred day moving average price of $114.10.

EchoStar (NASDAQ:SATS - Get Free Report) last posted its earnings results on Saturday, May 9th. The communications equipment provider reported ($0.51) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.48) by ($0.03). EchoStar had a negative net margin of 97.56% and a negative return on equity of 4.80%. The business had revenue of $3.67 billion during the quarter, compared to analyst estimates of $3.65 billion. During the same period in the previous year, the firm posted ($0.71) earnings per share. As a group, equities analysts expect that EchoStar Corporation will post -3.79 earnings per share for the current year.

EchoStar News Summary

Here are the key news stories impacting EchoStar this week:

• Positive Sentiment: EchoStar’s pending transactions with AT&T and SpaceX could unlock about $44.65 billion in value, helping monetize spectrum, reduce debt, and support future wireless growth. Article Title
• Positive Sentiment: Several large institutional investors have recently added to EchoStar positions, including State Street, Wellington Management, and FMR, suggesting ongoing professional interest in the stock.
• Positive Sentiment: Analyst coverage remains constructive overall, with recent price targets near $129 to $155 and TD Cowen reiterating an upbeat view on the company’s spectrum assets.
• Neutral Sentiment: Market commentary continues to focus on whether EchoStar’s spectrum holdings are being fairly valued, with some analysts saying the rally may be hard to chase after the recent run-up. Article Title
• Neutral Sentiment: Short interest remains elevated at roughly 36.5% of float, which can amplify volatility and signal a divided market view on the stock.
• Negative Sentiment: EchoStar CEO Hamid Akhavan recently sold shares under a pre-arranged trading plan, and insider data shows only sales over the past six months, which may weigh on sentiment.
• Negative Sentiment: Some headlines are framing EchoStar’s weakness as a warning sign tied to SpaceX-related expectations, adding uncertainty around the market’s interpretation of the company’s satellite spectrum strategy. Article Title

Wall Street Analyst Weigh In

SATS has been the topic of several analyst reports. Weiss Ratings restated a "sell (d-)" rating on shares of EchoStar in a report on Monday, April 20th. Wall Street Zen upgraded shares of EchoStar from a "sell" rating to a "hold" rating in a report on Saturday, May 16th. TD Cowen increased their price objective on shares of EchoStar from $129.00 to $155.00 and gave the company a "buy" rating in a report on Monday, May 18th. Williams Trading set a $155.00 price objective on shares of EchoStar in a report on Monday, May 18th. Finally, UBS Group increased their price objective on shares of EchoStar from $125.00 to $127.00 and gave the company a "neutral" rating in a report on Tuesday, March 3rd. Four equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $137.14.

About EchoStar

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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