Gilat Satellite Networks (NASDAQ:GILT) Reaches New 12-Month High After Better-Than-Expected Earnings

Key Points

• Gilat Satellite Networks' stock hit a new 52-week high of $8.85 following a better-than-expected earnings report, with earnings per share of $0.21 surpassing estimates of $0.04.
• Institutional investors hold 35.72% of Gilat Satellite Networks' stock, with significant recent investments from firms like Royce & Associates LP and Penn Capital Management Company LLC.
• Analyst ratings varied, with Needham & Company maintaining a "buy" rating with an $8.50 target, while Wall Street Zen downgraded the stock from "buy" to "hold."

Shares of Gilat Satellite Networks Ltd. (NASDAQ:GILT - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $8.85 and last traded at $8.84, with a volume of 2399681 shares traded. The stock had previously closed at $7.35.

The communications equipment provider reported $0.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.04 by $0.17. Gilat Satellite Networks had a net margin of 6.41% and a return on equity of 10.05%. The business had revenue of $105.00 million for the quarter, compared to analyst estimates of $100.99 million.

Analysts Set New Price Targets

A number of brokerages have commented on GILT. Needham & Company LLC increased their target price on Gilat Satellite Networks from $8.50 to $11.00 and gave the company a "buy" rating in a report on Wednesday. Wall Street Zen upgraded Gilat Satellite Networks from a "hold" rating to a "strong-buy" rating in a report on Saturday.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in GILT. Raymond James Financial Inc. acquired a new position in shares of Gilat Satellite Networks in the 4th quarter valued at $226,000. LPL Financial LLC purchased a new position in Gilat Satellite Networks during the fourth quarter worth about $132,000. Arrowstreet Capital Limited Partnership boosted its position in shares of Gilat Satellite Networks by 43.5% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 215,597 shares of the communications equipment provider's stock worth $1,329,000 after purchasing an additional 65,374 shares during the period. National Bank of Canada FI acquired a new stake in Gilat Satellite Networks in the 4th quarter valued at approximately $154,000. Finally, Covestor Ltd acquired a new position in Gilat Satellite Networks during the fourth quarter worth $29,000. 35.72% of the stock is currently owned by institutional investors and hedge funds.

Gilat Satellite Networks Stock Performance

The company has a quick ratio of 1.17, a current ratio of 1.50 and a debt-to-equity ratio of 0.18. The firm has a 50-day moving average price of $7.14 and a 200 day moving average price of $6.78. The firm has a market capitalization of $502.88 million, a PE ratio of 22.54 and a beta of 0.46.

About Gilat Satellite Networks

Gilat Satellite Networks Ltd., together with its subsidiaries, provides satellite-based broadband communication solutions in Israel, the United States, Peru, and internationally. It operates in three segments: Satellite Networks, Integrated Solutions, and Network Infrastructure and Services. Its portfolio consists of cloud-based satellite network platform, very small aperture terminals, amplifiers, modems, on-the-move antennas, solid state power amplifiers, block upconverters, transceivers, and defense ground systems and field services.