Gilat Satellite Networks (NASDAQ:GILT) Stock Price Up 8.3% - Here's What Happened

Key Points

• 8.3% rally: Gilat shares jumped to about $19.86 (intraday high $20.05) on Tuesday, though volume was light at ~257,622 shares versus a 850,129 average, leaving the stock trading near the consensus $20 price target.
• Earnings beat: The company reported quarterly EPS of $0.20 versus $0.13 expected and revenue of $136.96M versus $133.56M, while the market cap is ~$1.48B and the PE ratio is about 60.9.
• Mixed analyst and insider activity: Analyst ratings are mixed with a consensus "Moderate Buy," insiders (including the CEO) have sold shares recently, and institutional ownership totals roughly 35.7% after several funds increased stakes.

Gilat Satellite Networks Ltd. (NASDAQ:GILT - Get Free Report)'s share price was up 8.3% on Tuesday . The company traded as high as $20.05 and last traded at $19.8630. Approximately 257,622 shares were traded during trading, a decline of 70% from the average daily volume of 850,129 shares. The stock had previously closed at $18.34.

Wall Street Analyst Weigh In

Several research analysts have weighed in on GILT shares. Wall Street Zen downgraded shares of Gilat Satellite Networks from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Needham & Company LLC reiterated a "buy" rating and issued a $20.00 price target on shares of Gilat Satellite Networks in a research report on Tuesday, February 10th. Finally, Freedom Capital upgraded shares of Gilat Satellite Networks from a "hold" rating to a "strong-buy" rating in a research report on Thursday, February 12th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $20.00.

Gilat Satellite Networks Trading Up 9.5%

The firm has a market capitalization of $1.48 billion, a PE ratio of 60.86 and a beta of 1.05. The business's 50 day simple moving average is $16.97 and its 200 day simple moving average is $15.19.

Gilat Satellite Networks (NASDAQ:GILT - Get Free Report) last released its quarterly earnings results on Tuesday, February 10th. The communications equipment provider reported $0.20 EPS for the quarter, topping analysts' consensus estimates of $0.13 by $0.07. Gilat Satellite Networks had a net margin of 4.59% and a return on equity of 10.36%. The firm had revenue of $136.96 million during the quarter, compared to analysts' expectations of $133.56 million. Analysts forecast that Gilat Satellite Networks Ltd. will post 0.47 earnings per share for the current year.

Insider Transactions at Gilat Satellite Networks

In other news, CEO Adi Sfadia sold 48,978 shares of the business's stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $16.85, for a total value of $825,279.30. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Doron Kerbel sold 7,500 shares of the business's stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $18.03, for a total transaction of $135,225.00. The SEC filing for this sale provides additional information. Company insiders own 1.13% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of GILT. Clal Insurance Enterprises Holdings Ltd increased its stake in Gilat Satellite Networks by 118.2% during the 3rd quarter. Clal Insurance Enterprises Holdings Ltd now owns 4,154,120 shares of the communications equipment provider's stock valued at $51,992,000 after purchasing an additional 2,250,000 shares in the last quarter. Penserra Capital Management LLC raised its position in shares of Gilat Satellite Networks by 831.1% in the third quarter. Penserra Capital Management LLC now owns 1,193,094 shares of the communications equipment provider's stock valued at $15,533,000 after buying an additional 1,064,959 shares during the last quarter. Defiance ETFs LLC acquired a new stake in shares of Gilat Satellite Networks in the fourth quarter valued at about $13,555,000. UBS Group AG increased its position in Gilat Satellite Networks by 613.4% during the third quarter. UBS Group AG now owns 963,547 shares of the communications equipment provider's stock worth $12,545,000 after purchasing an additional 828,489 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its position in Gilat Satellite Networks by 995.8% during the third quarter. Arrowstreet Capital Limited Partnership now owns 907,794 shares of the communications equipment provider's stock worth $11,755,000 after purchasing an additional 824,949 shares during the last quarter. Institutional investors and hedge funds own 35.72% of the company's stock.

About Gilat Satellite Networks

Gilat Satellite Networks is a leading provider of satellite-based broadband connectivity solutions, specializing in the design, development and deployment of ground segment equipment and network services. The company's core offerings include Very Small Aperture Terminal (VSAT) modems and hub systems, network management software, and end-to-end satellite communication platforms. These technologies enable broadband Internet access, enterprise networking, and cellular backhaul in regions where terrestrial infrastructure is limited or non-existent.

Founded in 1987 and headquartered in Petah Tikva, Israel, Gilat has established a track record of innovation in satellite communications.

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