Globalstar (NASDAQ:GSAT) Reaches New 12-Month High - Here's Why

Key Points

• Amazon offer reports drove the rally: Globalstar shares hit a new 52-week high (~$79.84) on heavy volume after media reported Amazon is offering about $11.57 billion (either $90 cash or capped Amazon shares), pricing in a takeover premium.
• Deal risks could complicate or delay closing: Halper Sadeh LLC has opened a shareholder fairness investigation and the transaction may face regulatory/antitrust and integration hurdles.
• Valuation and operating cautions remain: analysts are mixed with a consensus price target of $69 (below current levels), and Globalstar still shows negative EPS and net margins despite revenue growth, highlighting potential execution and valuation risks.

Globalstar, Inc. (NASDAQ:GSAT - Get Free Report)'s share price hit a new 52-week high on Tuesday . The company traded as high as $79.34 and last traded at $79.8410, with a volume of 3828060 shares trading hands. The stock had previously closed at $72.89.

Key Globalstar News

Here are the key news stories impacting Globalstar this week:

• Positive Sentiment: Acquisition offer provides a clear takeout value and premium for GSAT shareholders — $90 cash or capped Amazon shares as consideration, valuing the deal at roughly $11.57B. This is the direct catalyst for the rally. Read More.
• Positive Sentiment: Strategic fit: Amazon gets Globalstar’s spectrum, device-direct connectivity (used for Apple’s Emergency SOS) to accelerate Amazon Leo’s ability to provide voice/text/data directly to phones — a capability that boosts the strategic value beyond pure cash flows. Read More.
• Positive Sentiment: Broad market reaction — heavy volume and multiple outlets reporting an Amazon takeover pushed GSAT toward multi‑year highs as investors priced in the takeover premium. Read More.
• Neutral Sentiment: News flow and confirmation timeline: the story moved from Bloomberg/Reuters “nearing a deal” reports into formal announcements across outlets; this sequencing drove the early trading halt and volatility as markets absorbed terms. Read More.
• Negative Sentiment: Shareholder litigation risk: Halper Sadeh LLC has opened an investigation into whether Globalstar shareholders are getting a fair price in the sale — this could lead to legal challenges that seek a higher bid or delay closing. Read More.
• Negative Sentiment: Regulatory/antitrust and integration risk: a strategic acquisition in the LEO/mobile-connectivity arena could attract regulatory review (and integration of satellite assets and handset partnerships may take time), which could delay or complicate the deal. Read More.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the company. Deutsche Bank Aktiengesellschaft assumed coverage on Globalstar in a report on Tuesday, December 16th. They set a "hold" rating and a $62.00 target price for the company. Craig Hallum reaffirmed a "buy" rating and issued a $70.00 price target on shares of Globalstar in a research note on Monday, March 2nd. Zacks Research upgraded Globalstar from a "strong sell" rating to a "hold" rating in a research report on Wednesday, April 1st. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Globalstar in a research note on Monday, December 29th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $69.00.

Globalstar Stock Performance

The company has a market cap of $10.26 billion, a price-to-earnings ratio of -532.93, a P/E/G ratio of 119.44 and a beta of 1.46. The company has a current ratio of 2.42, a quick ratio of 2.37 and a debt-to-equity ratio of 1.27. The stock's fifty day simple moving average is $62.51 and its 200 day simple moving average is $58.67.

Globalstar (NASDAQ:GSAT - Get Free Report) last issued its earnings results on Friday, February 27th. The company reported ($0.11) earnings per share for the quarter, missing the consensus estimate of $0.01 by ($0.12). The company had revenue of $71.96 million for the quarter, compared to analyst estimates of $71.80 million. Globalstar had a negative return on equity of 1.02% and a negative net margin of 6.10%.The business's quarterly revenue was up 17.6% on a year-over-year basis.

Insiders Place Their Bets

In other Globalstar news, General Counsel L Barbee Iv Ponder sold 682 shares of the company's stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $57.31, for a total value of $39,085.42. Following the completion of the sale, the general counsel directly owned 143,348 shares in the company, valued at $8,215,273.88. This represents a 0.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Rebecca Clary sold 762 shares of Globalstar stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $57.31, for a total value of $43,670.22. Following the transaction, the chief financial officer owned 110,254 shares in the company, valued at approximately $6,318,656.74. This represents a 0.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 4,154 shares of company stock valued at $238,045. Insiders own 61.00% of the company's stock.

Institutional Trading of Globalstar

Several hedge funds have recently made changes to their positions in the company. SG Americas Securities LLC acquired a new stake in shares of Globalstar during the third quarter valued at about $713,000. Essex Investment Management Co. LLC acquired a new position in shares of Globalstar in the 3rd quarter worth approximately $7,072,000. JT Stratford LLC purchased a new position in shares of Globalstar during the 3rd quarter worth approximately $2,678,000. Vanguard Group Inc. boosted its position in shares of 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 purchasing an additional 141,451 shares during the period. Finally, American Century Companies Inc. increased its holdings in Globalstar by 24.3% in the 3rd quarter. American Century Companies Inc. now owns 1,260,459 shares of the company's stock valued at $45,868,000 after purchasing an additional 246,123 shares during the last quarter. Hedge funds and other institutional investors own 18.89% of the company's stock.

Globalstar Company 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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