Globalstar (NASDAQ:GSAT) Sees Unusually-High Trading Volume - Should You Buy?

Key Points

• Amazon agreed to acquire Globalstar for roughly $11.6 billion, offering $90 per share (or 0.3210 Amazon shares capped at $90), which is the primary catalyst for the recent rally and heavy trading.
• Legal/closing risk: Multiple shareholder law firms have opened investigations into whether the board secured a fair price, creating the possibility of litigation or delays that could pressure the transaction.
• Analysts are mixed — the consensus rating is a "Hold" with an average price target of $69, while GSAT trades near $80 (market cap ≈ $10.3B) and reported a negative EPS for the last quarter, underscoring valuation and execution concerns despite the takeover premium.

Globalstar, Inc. (NASDAQ:GSAT - Get Free Report) saw unusually-strong trading volume on Wednesday . Approximately 622,749 shares changed hands during trading, a decline of 36% from the previous session's volume of 976,284 shares.The stock last traded at $79.8880 and had previously closed at $79.91.

Key Globalstar News

Here are the key news stories impacting Globalstar this week:

• Positive Sentiment: Amazon agreed to acquire Globalstar for roughly $11.6–11.57 billion, offering $90 per share in cash or 0.3210 Amazon shares (capped at $90). The takeover premium and certainty of a cash/stock exit are the primary drivers behind the rally. Amazon signs $11.57 billion deal for satellite firm Globalstar
• Positive Sentiment: The acquisition brings a strategic commercial tie to Apple — Globalstar powers iPhone/iWatch satellite features — strengthening Amazon Leo’s direct-to-device roadmap and shortening time-to-market for consumer services. Amazon and Apple vs. Starlink: Globalstar acquisition comes with a big iPhone bonus
• Positive Sentiment: Analysts (e.g., Jefferies) view the deal as a long-duration strategic bet that accelerates Amazon’s roadmap with limited near-term cash strain, which supports positive sentiment for the takeover premium being justified. Amazon's $12.5B Globalstar deal seen as long-term strategic bet, Jefferies says
• Neutral Sentiment: Trading dynamics show heavy speculative activity (large call-option volume and an early trading halt), which amplified intraday moves but may also increase volatility until the deal closes. (Elevated options activity was reported on the announcement day.)
• Neutral Sentiment: Operational constraints remain: analysts warn the deal doesn't solve the broader rocket-launch bottleneck needed to quickly scale an LEO direct-to-device network — a potential execution headwind for long-term revenue ramp. Amazon's $11.6 billion Globalstar deal will not fix rocket launch bottleneck
• Negative Sentiment: Several shareholder law firms have launched investigations into whether Globalstar’s board obtained a fair price for shareholders, citing fiduciary concerns — this raises legal/closing risk and could pressure sentiment or prompt litigation. Shareholder Alert: Ademi LLP investigates whether Globalstar Inc. is obtaining a Fair Price for Public Shareholders
• Negative Sentiment: Additional law firms have opened probes (Halper Sadeh, Monteverde & Associates), reinforcing the possibility of protracted legal scrutiny or challenges to the transaction terms. GSAT Stock Alert: Halper Sadeh LLC is Investigating Whether Globalstar, Inc. is Obtaining a Fair Price for its Shareholders

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on GSAT shares. Deutsche Bank Aktiengesellschaft started coverage on Globalstar in a report on Tuesday, December 16th. They set a "hold" rating and a $62.00 target price for the company. Zacks Research upgraded Globalstar from a "strong sell" rating to a "hold" rating in a report on Wednesday, April 1st. Weiss Ratings reiterated a "sell (d-)" rating on shares of Globalstar in a report on Monday, December 29th. Finally, Craig Hallum reiterated a "buy" rating and set a $70.00 target price on shares of Globalstar in a report on Monday, March 2nd. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Globalstar has an average rating of "Hold" and an average price target of $69.00.

Globalstar Stock Down 0.0%

The firm has a 50-day moving average of $62.86 and a 200 day moving average of $58.99. The stock has a market capitalization of $10.27 billion, a price-to-earnings ratio of -532.59, a price-to-earnings-growth ratio of 119.00 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.

Globalstar (NASDAQ:GSAT - Get Free Report) last released its quarterly earnings results on Friday, February 27th. The company reported ($0.11) EPS 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%.Globalstar's revenue was up 17.6% on a year-over-year basis.

Insider Buying and Selling

In other news, CFO Rebecca Clary sold 762 shares of the stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $57.31, for a total transaction of $43,670.22. Following the completion of the transaction, the chief financial officer directly owned 110,254 shares in the company, valued at approximately $6,318,656.74. This represents a 0.69% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, General Counsel L Barbee Iv Ponder sold 682 shares of the stock in a transaction that occurred on Wednesday, March 11th. The shares were sold at an average price of $57.31, for a total value of $39,085.42. Following the transaction, the general counsel owned 143,348 shares of the company's stock, valued at approximately $8,215,273.88. This trade represents a 0.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 4,154 shares of company stock valued at $238,045. Corporate insiders own 60.00% of the company's stock.

Hedge Funds Weigh In On Globalstar

Institutional investors and hedge funds have recently made changes to their positions in the business. Towarzystwo Funduszy Inwestycyjnych PZU SA purchased a new position in shares of Globalstar during the 4th quarter valued at approximately $26,000. Meeder Asset Management Inc. purchased a new position in shares of Globalstar during the 4th quarter valued at approximately $27,000. US Bancorp DE boosted its stake in shares of Globalstar by 610.7% during the 3rd quarter. US Bancorp DE now owns 931 shares of the company's stock valued at $34,000 after buying an additional 800 shares during the last quarter. Fortitude Family Office LLC acquired a new stake in shares of Globalstar during the 3rd quarter valued at approximately $37,000. Finally, Advisory Services Network LLC acquired a new stake in shares of Globalstar during the 3rd quarter valued at approximately $40,000. 18.89% of the stock is currently owned by hedge funds and other institutional investors.

About Globalstar

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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