EchoStar Corporation $SATS Shares Acquired by Arax Advisory Partners

Key Points

• Arax Advisory Partners sharply increased its stake in EchoStar, boosting holdings by 22,637.4% in the fourth quarter to 20,691 shares worth about $2.25 million.
• EchoStar recently reported mixed quarterly results: revenue of $3.67 billion slightly beat estimates, but EPS of -$0.51 missed expectations. The company also continues to show significant leverage, with a debt-to-equity ratio of 3.17.
• The stock has been volatile amid SpaceX-related speculation and concerns over liquidity, including a missed $183 million interest payment by its DISH DBS subsidiary that raised default worries. Meanwhile, analysts currently rate the shares a consensus Hold with an average price target of $137.14.

Arax Advisory Partners lifted its holdings in shares of EchoStar Corporation (NASDAQ:SATS - Free Report) by 22,637.4% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 20,691 shares of the communications equipment provider's stock after purchasing an additional 20,600 shares during the quarter. Arax Advisory Partners' holdings in EchoStar were worth $2,249,000 as of its most recent SEC filing.

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

EchoStar Price Performance

NASDAQ:SATS opened at $114.08 on Monday. The company has a market capitalization of $33.06 billion, a price-to-earnings ratio of -2.28 and a beta of 0.95. EchoStar Corporation has a one year low of $16.73 and a one year high of $147.25. The stock has a 50-day simple moving average of $126.01 and a 200 day simple moving average of $114.82. The company has a debt-to-equity ratio of 3.17, a quick ratio of 0.27 and a current ratio of 0.30.

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

Key Stories Impacting 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

Insider Buying and Selling

In related news, CEO Hamid Akhavan sold 52,586 shares of EchoStar stock in a transaction dated 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 completion of the transaction, the chief executive officer directly owned 865,633 shares in the company, valued at approximately $104,741,593. This trade represents 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. Company insiders own 55.70% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on SATS shares. UBS Group raised their price objective on EchoStar from $125.00 to $127.00 and gave the stock a "neutral" rating in a report on Tuesday, March 3rd. Weiss Ratings reissued a "sell (d-)" rating on shares of EchoStar in a research report on Monday, April 20th. Wall Street Zen raised 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 EchoStar in a research report on Monday, May 18th. Finally, Zacks Research lowered EchoStar from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 10th. Four equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $137.14.

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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