Dockside LLC Acquires Shares of 14,293 EchoStar Corporation $SATS

Key Points

• Dockside LLC disclosed a new fourth-quarter stake in EchoStar, buying 14,293 shares valued at about $1.55 million. Other hedge funds also made modest changes to their holdings, and institutional investors now own 33.62% of the company.
• EchoStar shares were under pressure, with the stock reported down 11.0% amid a pullback after a SpaceX-related rally. Traders have also been watching the company’s debt and liquidity risks, especially after a missed interest payment by its DISH DBS subsidiary.
• Despite mixed fundamentals, analyst sentiment remains divided but somewhat constructive, with a consensus Hold rating and an average price target of $137.14. Recent commentary includes target increases from TD Cowen and UBS, while the company also reported a quarterly EPS miss despite slightly better-than-expected revenue.

Dockside LLC acquired a new stake in EchoStar Corporation (NASDAQ:SATS - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 14,293 shares of the communications equipment provider's stock, valued at approximately $1,554,000.

A number of other hedge funds have also recently added to or reduced their stakes in the company. HB Wealth Management LLC grew its stake in EchoStar by 2.0% in the fourth quarter. HB Wealth Management LLC now owns 4,933 shares of the communications equipment provider's stock valued at $536,000 after acquiring an additional 98 shares during the period. PNC Financial Services Group Inc. grew its stake in EchoStar by 2.1% in the fourth quarter. PNC Financial Services Group Inc. now owns 5,618 shares of the communications equipment provider's stock valued at $611,000 after acquiring an additional 114 shares during the period. Fifth Third Bancorp grew its stake in EchoStar by 8.1% in the fourth quarter. Fifth Third Bancorp now owns 1,800 shares of the communications equipment provider's stock valued at $196,000 after acquiring an additional 135 shares during the period. Northwestern Mutual Investment Management Company LLC grew its stake in EchoStar by 0.5% in the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 30,118 shares of the communications equipment provider's stock valued at $3,274,000 after acquiring an additional 144 shares during the period. Finally, Hollencrest Capital Management acquired a new stake in EchoStar in the fourth quarter valued at approximately $26,000. Institutional investors and hedge funds own 33.62% of the company's stock.

Trending Headlines about EchoStar

Here are the key news stories impacting EchoStar this week:

• Positive Sentiment: EchoStar remains closely tied to enthusiasm around the SpaceX IPO, and that relationship helped drive a sharp run-up in the stock earlier in the week as traders speculated on the value of EchoStar’s SpaceX stake. All Eyes on SpaceX IPO Today
• Positive Sentiment: Analyst targets on SATS remain above the current share price, with recent estimates implying upside if the company can stabilize operations and reduce balance-sheet risk. SpaceX IPO Crowds Pre-Market Sentiment
• Neutral Sentiment: The SpaceX IPO is dominating market chatter and has increased trading interest in Space-related names, which has boosted volatility in EchoStar rather than changing the company’s fundamentals directly. Stock Movers Ahead of SpaceX Debut
• Negative Sentiment: EchoStar disclosed that its DISH DBS subsidiary missed about $183 million in interest payments due June 1, which is a default under the indentures unless cured during the grace period; that has renewed default and liquidity worries. EchoStar shares slide as missed interest payment rekindles default and liquidity concerns
• Negative Sentiment: After the recent surge, traders appear to be taking profits, and Friday’s weakness reflects a pullback from the SpaceX-linked rally combined with renewed concern about refinancing risk. Stock Market Today, June 12: EchoStar Falls as SpaceX-Linked Rally Meets DISH DBS Payment Risk

EchoStar Stock Down 11.0%

Shares of NASDAQ:SATS opened at $114.08 on Friday. The stock has a market cap of $33.06 billion, a price-to-earnings ratio of -2.28 and a beta of 0.94. The company has a quick ratio of 0.27, a current ratio of 0.30 and a debt-to-equity ratio of 3.17. EchoStar Corporation has a 12-month low of $16.73 and a 12-month high of $147.25. The business's 50 day moving average is $126.01 and its 200 day moving average is $114.51.

EchoStar (NASDAQ:SATS - Get Free Report) last announced its earnings results on Saturday, May 9th. The communications equipment provider reported ($0.51) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.48) by ($0.03). The company had revenue of $3.67 billion for the quarter, compared to analysts' expectations of $3.65 billion. EchoStar had a negative net margin of 97.56% and a negative return on equity of 4.80%. During the same period in the previous year, the firm earned ($0.71) EPS.

Insiders Place Their Bets

In other EchoStar news, CEO Hamid Akhavan sold 52,586 shares of the business's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $121.00, for a total value of $6,362,906.00. Following the transaction, the chief executive officer owned 865,633 shares of the company's stock, valued at approximately $104,741,593. The trade was a 5.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 55.90% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on SATS shares. Wall Street Zen raised EchoStar from a "sell" rating to a "hold" rating in a research note on Saturday, May 16th. UBS Group lifted their target price on EchoStar from $125.00 to $127.00 and gave the company a "neutral" rating in a research report on Tuesday, March 3rd. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of EchoStar in a research report on Monday, April 20th. TD Cowen lifted their target price on EchoStar from $129.00 to $155.00 and gave the company a "buy" rating in a research report on Monday, May 18th. Finally, New Street Research assumed coverage on EchoStar in a research report on Wednesday, May 13th. They set a "buy" rating and a $161.00 target price on the stock. Four investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $137.14.

EchoStar 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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