Globalstar (NASDAQ:GSAT) Reaches New 52-Week High - Here's Why

Key Points

• Globalstar's stock hit a new 52-week high, trading as high as $82.35 and last at $81.51, with a market cap of $10.45 billion and 50-/200-day simple moving averages of $67.80 and $61.89 respectively.
• Wall Street's consensus rating is a Hold with an average price target of $69—below the current share price—while analyst opinions remain mixed (2 Buy, 2 Hold, 1 Sell).
• The company missed quarterly EPS (‑$0.11 vs. $0.01 expected) despite revenue rising 17.6% year-over-year to $71.96 million, and continues to show negative profitability (net margin ‑6.1%, ROE ‑1.02%).

Globalstar, Inc. (NASDAQ:GSAT - Get Free Report)'s stock price hit a new 52-week high on Thursday . The company traded as high as $82.35 and last traded at $81.5140, with a volume of 15544 shares traded. The stock had previously closed at $81.63.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Zacks Research upgraded shares of Globalstar from a "strong sell" rating to a "hold" rating in a research note on Wednesday, April 1st. Craig Hallum reiterated a "buy" rating and set a $70.00 price target on shares of Globalstar in a research note on Monday, March 2nd. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Globalstar currently has a consensus rating of "Hold" and an average price target of $69.00.

Globalstar Stock Performance

The company has a market cap of $10.45 billion, a PE ratio of -542.16, a P/E/G ratio of 133.71 and a beta of 1.46. The company has a debt-to-equity ratio of 1.27, a quick ratio of 2.37 and a current ratio of 2.42. The stock's 50-day simple moving average is $67.80 and its 200 day simple moving average is $61.89.

Globalstar (NASDAQ:GSAT - Get Free Report) last announced its quarterly earnings data on Friday, February 27th. The company reported ($0.11) EPS for the quarter, missing analysts' consensus estimates of $0.01 by ($0.12). The firm had revenue of $71.96 million for the quarter, compared to analysts' expectations 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. As a group, equities analysts anticipate that Globalstar, Inc. will post 0.02 EPS for the current year.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Globalstar

Large investors have recently made changes to their positions in the stock. Towarzystwo Funduszy Inwestycyjnych PZU SA purchased a new position in shares of Globalstar in the 4th quarter valued at about $26,000. Meeder Asset Management Inc. purchased a new position in shares of Globalstar in the 4th quarter valued at about $27,000. US Bancorp DE increased its holdings in shares of Globalstar by 610.7% in the 3rd quarter. US Bancorp DE now owns 931 shares of the company's stock valued at $34,000 after purchasing an additional 800 shares in the last quarter. Advisory Services Network LLC purchased a new position in shares of Globalstar in the 3rd quarter valued at about $40,000. Finally, CWM LLC increased its holdings in shares of Globalstar by 100.6% in the 3rd quarter. CWM LLC now owns 1,324 shares of the company's stock valued at $48,000 after purchasing an additional 664 shares in 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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