Varde Management L.P. Makes New $16.18 Million Investment in Echostar CORP $ECHO

Key Points

• Varde Management initiated a $16.18 million position in EchoStar during the second quarter, purchasing 159,400 shares and making the stock its third-largest holding at 23.6% of the fund’s portfolio.
• Institutional ownership rose as several firms, including Amundi, Nykredit and Corient Private Wealth, opened new positions; institutions and hedge funds collectively own 33.62% of EchoStar.
• Analyst sentiment is generally positive, with a “Moderate Buy” consensus and an average price target of $134.88, although insiders sold 13,508 shares worth about $1.22 million during the last quarter.

Varde Management L.P. purchased a new stake in Echostar CORP (NASDAQ:ECHO - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund purchased 159,400 shares of the company's stock, valued at approximately $16,179,000. Echostar makes up about 23.6% of Varde Management L.P.'s investment portfolio, making the stock its 3rd largest holding. Varde Management L.P. owned 0.05% of Echostar as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the stock. Nykredit A S acquired a new stake in shares of Echostar in the 2nd quarter valued at about $4,295,000. Parkside Financial Bank & Trust acquired a new position in Echostar during the 2nd quarter worth approximately $72,000. Corient Private Wealth LP acquired a new position in Echostar during the 2nd quarter worth approximately $908,000. Amundi bought a new position in Echostar in the second quarter worth approximately $41,808,000. Finally, HighTower Advisors LLC bought a new position in Echostar in the second quarter worth approximately $1,247,000. Institutional investors and hedge funds own 33.62% of the company's stock.

Insider Buying and Selling at Echostar

In other Echostar news, Director Stephen J. Bye sold 8,508 shares of Echostar stock in a transaction on Friday, August 7th. The shares were sold at an average price of $89.83, for a total transaction of $764,273.64. Following the transaction, the director directly owned 653 shares of the company's stock, valued at $58,658.99. The trade was a 92.87% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director William Wade sold 2,425 shares of Echostar stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $91.48, for a total transaction of $221,839.00. Following the transaction, the director directly owned 324 shares in the company, valued at $29,639.52. This represents a 88.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 13,508 shares of company stock valued at $1,224,686 in the last quarter. 55.70% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several equities research analysts have recently commented on ECHO shares. Weiss Ratings began coverage on Echostar in a report on Monday, July 6th. They set a "sell (d-)" rating for the company. Wall Street Zen upgraded Echostar from a "sell" rating to a "hold" rating in a report on Saturday, May 16th. Williams Trading set a $155.00 price target on shares of Echostar in a research report on Monday, May 18th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $137.00 price target on shares of Echostar in a research note on Wednesday, July 15th. Finally, Raymond James Financial raised shares of Echostar from a "market perform" rating to a "strong-buy" rating and set a $115.00 price objective on the stock in a research note on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Echostar currently has an average rating of "Moderate Buy" and an average price target of $134.88.

Echostar Stock Performance

ECHO traded up $3.62 during midday trading on Tuesday, reaching $93.42. 4,299,077 shares of the company were exchanged, compared to its average volume of 6,624,958. The company has a debt-to-equity ratio of 1.13, a quick ratio of 5.12 and a current ratio of 5.20. The stock has a fifty day moving average of $89.82. The company has a market cap of $27.14 billion, a P/E ratio of -3.75 and a beta of 1.00. Echostar CORP has a one year low of $65.76 and a one year high of $147.25.

Echostar (NASDAQ:ECHO - Get Free Report) last issued its quarterly earnings data on Saturday, May 9th. The company reported ($0.51) EPS for the quarter. The company had revenue of $3.67 billion during the quarter. Echostar had a negative return on equity of 1.28% and a negative net margin of 38.71%. As a group, sell-side analysts anticipate that Echostar CORP will post -1.35 earnings per share for the current fiscal year.

Echostar Profile

EchoStar Corporation is a communications company that provides satellite and wireless services, video distribution, and broadband connectivity solutions. Its business has historically been centered on satellite technology and related services, serving customers through a range of connectivity and network offerings.

The company operates through several segments that support pay-TV, enterprise, government, and consumer communications needs. Its services and technologies have included satellite television distribution, broadband satellite access, network infrastructure, and wireless communications capabilities.

EchoStar was founded in 1980 and has long been associated with satellite communications in the United States.

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