UBS Group AG Boosts Position in Globalstar, Inc. $GSAT

Key Points

• UBS Group AG significantly increased its stake in Globalstar, boosting holdings by 166.9% in the fourth quarter to 526,566 shares valued at about $32.1 million.
• Globalstar reported mixed quarterly results, with revenue rising 16.7% year over year to $70.06 million but EPS coming in at -$0.16, well below analyst expectations.
• The stock has seen heavy institutional interest and sharp price strength, with shares recently trading near their 52-week high of $82.85 and analysts maintaining an overall Hold rating with a $69 average target.

UBS Group AG boosted its holdings in shares of Globalstar, Inc. (NASDAQ:GSAT - Free Report) by 166.9% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 526,566 shares of the company's stock after buying an additional 329,270 shares during the quarter. UBS Group AG owned 0.42% of Globalstar worth $32,142,000 at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of GSAT. American Century Companies Inc. raised its position in Globalstar by 24.3% during the 3rd quarter. American Century Companies Inc. now owns 1,260,459 shares of the company's stock worth $45,868,000 after buying an additional 246,123 shares during the last quarter. Van ECK Associates Corp raised its position in Globalstar by 75.8% during the 3rd quarter. Van ECK Associates Corp now owns 489,326 shares of the company's stock worth $17,807,000 after buying an additional 210,993 shares during the last quarter. Essex Investment Management Co. LLC purchased a new position in Globalstar during the 3rd quarter worth approximately $7,072,000. Vanguard Group Inc. raised its position in Globalstar by 2.8% during the 3rd quarter. Vanguard Group Inc. now owns 5,233,721 shares of the company's stock worth $190,455,000 after buying an additional 141,451 shares during the last quarter. Finally, Greenhouse Funds LLLP raised its position in Globalstar by 6.1% during the 3rd quarter. Greenhouse Funds LLLP now owns 2,149,192 shares of the company's stock worth $78,209,000 after buying an additional 123,676 shares during the last quarter. 18.89% of the stock is owned by hedge funds and other institutional investors.

Globalstar Price Performance

Shares of NASDAQ GSAT opened at $82.09 on Friday. The firm has a market cap of $10.56 billion, a PE ratio of -547.27, a PEG ratio of 133.03 and a beta of 1.56. The firm has a fifty day moving average of $69.50 and a 200 day moving average of $63.08. The company has a debt-to-equity ratio of 1.27, a quick ratio of 2.37 and a current ratio of 2.42. Globalstar, Inc. has a one year low of $17.24 and a one year high of $82.85.

Globalstar (NASDAQ:GSAT - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.16) EPS for the quarter, missing the consensus estimate of ($0.02) by ($0.14). The company had revenue of $70.06 million during the quarter. Globalstar had a negative return on equity of 3.71% and a negative net margin of 6.84%.The firm's revenue for the quarter was up 16.7% on a year-over-year basis. As a group, research analysts predict that Globalstar, Inc. will post 0.02 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Rebecca Clary sold 4,066 shares of the firm's stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $81.24, for a total value of $330,321.84. Following the transaction, the chief financial officer directly owned 121,198 shares of the company's stock, valued at approximately $9,846,125.52. This trade represents a 3.25% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Paul E. Jacobs sold 1,153 shares of Globalstar stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $57.31, for a total value of $66,078.43. Following the completion of the sale, the chief executive officer owned 61,080 shares in the company, valued at approximately $3,500,494.80. The trade was a 1.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 12,257 shares of company stock worth $890,722 in the last 90 days. Insiders own 60.00% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on GSAT shares. Zacks Research raised shares of Globalstar from a "strong sell" rating to a "hold" rating in a report on Wednesday, April 1st. Craig Hallum reaffirmed a "buy" rating and issued a $70.00 price objective on shares of Globalstar in a report on Monday, March 2nd. Finally, Weiss Ratings raised shares of Globalstar from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday. Two research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $69.00.

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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